A transformative trade agreement between the United States and Nigeria—the U.S.-Nigeria Commercial and Investment Partnership (CIP)—signed in July 2024, has the potential to reshape Nigeria’s startup ecosystem by unlocking access to American venture capital, streamlining regulatory processes, and boosting investor confidence. At a time when global venture funding is contracting, the deal offers a promising opportunity for Nigeria to reposition itself as a digital innovation hub on the continent.
The CIP aims to remove trade barriers, promote private investment, and deepen U.S.-Nigeria economic ties over a five-year period. U.S. capital markets, valued at over $120 trillion, represent a massive pool of investment, and with 60% of Nigerian startups already incorporated in the U.S., the agreement could further bridge the gap between Silicon Valley and Silicon Yaba.
In 2024, Nigerian startups raised $410 million, a 17% rise from $398.2 million in 2023, per Africa: The Big Deal. However, this growth is still subdued due to regulatory volatility, FX instability, and high operational costs. The CIP, formalized by Nigeria’s Minister of Industry, Trade, and Investment Doris Uzoka-Anite and U.S. Secretary of Commerce Gina Raimondo, aims to reverse these challenges by convening sector-specific working groups—beginning with tech, agriculture, and infrastructure.
U.S. Ambassador to Nigeria Richard M. Mills emphasized that the agreement isn’t just diplomatic—it puts private sector voices at the center of reform. “Both governments will listen and learn from private stakeholders on what concrete steps can be taken,” Mills said.
Startup-friendly initiatives like SelectUSA and Networking with the USA will allow Nigerian founders to access U.S. accelerators, scale their products, and plug into global markets. Successful case studies like Flutterwave, Andela, and Esusu show what’s possible when Nigerian ingenuity meets U.S. resources.
More than 20,000 Nigerian students in the U.S. and 750,000 diaspora members form the human capital backbone enabling mentorship, market entry, and cross-border talent flows.
Yet, risks remain. Recent 14% tariffs on Nigerian non-oil exports could erode FX earnings, impacting startups dependent on imported hardware and cloud tools. Still, Mills insists the aim of such measures is reciprocity, not punishment.
Ultimately, the CIP’s long-term value lies in de-risking Nigeria as an investment destination, not just for tech but for broader infrastructure and industrial development. Nigeria joins only five African nations with a CIP agreement—an endorsement of its innovation potential.
If well executed, this partnership could be a launchpad for Nigeria’s next unicorn.
