Nigeria has signed a Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates, marking one of the country’s most ambitious trade liberalisation moves in recent years and significantly reshaping bilateral commerce between Africa’s largest economy and the Gulf state.
Under the agreement, tariffs on 7,315 Nigerian products entering the UAE will be eliminated, opening wide access to one of the Middle East’s most important trade and logistics hubs. The deal provides immediate duty-free access for 2,805 Nigerian products, including cotton, fish, cereals, fruits, and leather, offering a near-term boost for Nigeria’s agricultural and light manufacturing exports.
Tariffs on a further range of Nigerian exports, notably machinery, vehicles, electrical equipment, apparel, and furniture, will be phased out over a three- to five-year period, allowing domestic producers time to scale capacity and improve competitiveness before full market liberalisation takes effect.
In return, Nigeria has eliminated tariffs on 6,243 products imported from the UAE, particularly capital goods, industrial machinery, and equipment, a move expected to lower input costs for Nigerian manufacturers and accelerate industrial development. Policymakers say the structure of the agreement reflects a strategic trade-off: improved export access for Nigerian producers in exchange for cheaper technology and production inputs from the UAE.
The CEPA is designed not only to expand trade volumes but also to diversify Nigeria’s export base, which remains heavily reliant on crude oil. By granting preferential access for agricultural products, textiles, leather goods, and manufactured items, the agreement aligns with Nigeria’s broader push toward non-oil exports, value addition, and job creation.
For the UAE, the deal strengthens its role as a gateway for Nigerian goods into the wider Middle East, Asia, and Europe, while deepening investment and supply-chain links with West Africa. Emirati firms are already major players in Nigerian ports, logistics, aviation, and energy, and the CEPA is expected to further stimulate foreign direct investment and industrial partnerships.
Trade analysts note that the phased tariff reductions are critical to the agreement’s success, as they reduce the risk of import shocks while giving Nigerian firms time to build competitiveness. If effectively implemented, the CEPA could reposition Nigeria as a stronger manufacturing and export hub within Africa, while embedding the country more deeply into global trade networks.
The agreement now shifts focus to execution, including customs readiness, export standards, and support for small and medium-sized enterprises, which will determine whether the promised gains translate into sustained economic growth.
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