Qualitative Analysis of Stakeholder Perceptions of AGOA’s Challenges in Nigeria

Abstract

The African Growth and Opportunity Act (AGOA), as a trade preference program, offers trade privileges to participating countries, including Nigeria, since its inception. After 24 years, the impact of the trade program on Nigeria’s trade volume is fragmented, and the extent to which the trade preference has influenced trade volume and internal trade policy remains uncertain. This paper analyses the stakeholder perception of the impact of AGOA on trade volume. It identifies limitations of AGOA’s trade policy. Clearly, it presents specific policy-relevant implications for trade challenges in Nigeria using a combined purposive and snowball sampling survey method to collect and analyse primary data. The stakeholder perception indicates that AGOA trade increases market capacity, leads to market expansion, and business development, and that the Nigerian market can meet the AGOA’s product specifications. However, Nigeria’s failure to meet the standards due to weak trade policy and other internal and external limitations to trade has worsened AGOA’s challenges on trade volume and economic growth. In contrast to recommendations for policy remedies to address the limitations, the study suggests that, given the internal challenges, the Nigerian government should review the conditions of AGOA to determine if its current trade policy postures align with the current realities. The Nigerian government study the conditions contained in the AfCFTA trade program and ascertain if its current capacity, socioeconomic structure, and institutions can guarantee maximum benefits.