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US Strengthens Agricultural Trade Ties with Nigeria
The United States has expanded support for agricultural trade with Nigeria through the U.S. Department of Agriculture Export Credit Guarantee Program (GSM-102), a key initiative that provides U.S. government–backed credit guarantees for agricultural exports.
The GSM-102 program enables Nigerian banks and importers to access affordable financing when sourcing essential agricultural commodities and inputs from the United States, strengthening food supply chains while expanding commercial opportunities for both countries.
Rising US–Nigeria Trade and Agricultural Growth
The expansion comes amid growing economic engagement between the United States and Nigeria. Two-way trade in goods and services reached nearly $15 billion in 2025, representing a 14 percent increase from 2024.
Agricultural trade played a major role in this growth, rising sharply to $764 million in 2025, up 84 percent from $415 million the previous year—highlighting Nigeria’s increasing importance as a strategic agricultural trade partner.
Lagos Event Drives Awareness and Utilisation of GSM-102
To boost awareness and uptake of the GSM-102 program, the Foreign Agricultural Service of the U.S. Consulate General Lagos hosted a two-day stakeholder engagement in Lagos.
The event brought together officials from the USDA, the U.S. International Development Finance Corporation, the Nigerian-American Chamber of Commerce, U.S. agricultural exporters, Nigerian banks, and local agricultural importers.
Shift From Aid to Trade
Speaking at the opening session, Rick Swart, U.S. Consul General in Lagos, described Nigeria as one of the United States’ most important agricultural trade partners in Africa.
“Under the Trump Administration, we are making a clear shift from aid to trade,” Swart said. “We are engaging Nigeria as a serious commercial partner and focusing on real-world solutions that enable entrepreneurs, innovators, and investors to drive the future of U.S.-Nigeria commerce.”
How GSM-102 Supports Food Security and Jobs
Throughout the two-day programme, participants examined how GSM-102-backed financing can help Nigerian businesses improve access to U.S. agricultural products, enhance food security, and support job creation across both economies.
Business-to-business sessions also connected Nigerian importers with U.S. exporters, helping convert market opportunities into concrete trade transactions.
Reducing Risk and Unlocking Market Confidence
Demeteris “Dee” Hale, Senior Analyst at the USDA covering Africa and other emerging regions, explained that GSM-102 plays a critical role in reducing trade risk.
“At its core, GSM-102 strengthens market confidence by reducing risk and enabling lenders and exporters to move forward with transactions,” Hale said. “Our goal is to work with financial institutions and agribusiness stakeholders to deepen linkages and expand agricultural trade.”
Nigerian Banks Re-Enter GSM-102 Program
In late 2025, Nigerian banks regained eligibility to participate in the GSM-102 program. Since then, credit limits have already been extended to selected banks, restoring access to U.S.-backed trade financing and supporting renewed growth in bilateral agricultural trade.
