The United States government has disclosed plans to unlock access for Nigerian businesses and entrepreneurs to its capital market valued at over $120 trillion as a key avenue for financing innovation and growth.

Speaking at a fireside chat, hosted by Lagos Business School, the U.S. Ambassador to Nigeria, David Greene Mills, stressed that the liquidity and efficiency of the U.S. financial system make it a vital source of venture capital and long-term investment.

Mills emphasised the U.S. intention to expand its commercial footprint in Nigeria by encouraging more U.S. companies, ranging from startups to multinationals, to explore opportunities across Africa’s largest economy.

He said Nigeria is already the United States’ second-largest trading partner in Africa, with two-way trade in goods and services totalling nearly $13 billion in 2024.

According to Mills, over 80 major U.S. companies currently operate in Nigeria across sectors ranging from pharmaceuticals to tech and manufacturing.

He pointed to the growing footprint of American businesses in the Lagos Free Zone and Alaro City, including firms like Kellogg’s, Colgate-Palmolive, and Caterpillar.

Mills noted that 60 per cent of Nigeria’s venture capital funding comes from American firms and encouraged even greater access to the U.S. capital market, valued at over $120 trillion for Nigerian entrepreneurs.

“We must continue to foster an enabling business environment that catalyzes investment and collaboration needed to attract this kind of high-impact investment,” he said.

The Ambassador highlighted that in 2024, U.S.-Nigeria trade totalled nearly $13 billion, with the U.S. maintaining its position as one of Nigeria’s leading foreign investors. He also stated U.S. foreign direct investment in Nigeria rose to $6.5 billion last year, which is a 5.5 per cent increase from 2023.

Mills underlined the people-to-people connections that reinforce the U.S.-Nigeria relationship. He said with over 750,000 Nigerians in the United States, the largest African diaspora group in the country, and more than 20,000 Nigerian students enrolled in U.S. universities, educational and cultural ties continue to thrive.

“Nigeria is poised to overtake the United States as the third most populous country in the world by 2050, with a population projected to exceed 375 million. Going forward, we will continue to invest in development, but we will do so through expanded trade and private investment because it is the private sector – not assistance – that drives economic growth and by promoting two-way trade and investment, we will drive mutual growth for both our nations,” Mills stated.

The Ambassador further stated that a key priority of his mandate is to increase trade, investment, and business linkages between the two nations. (The Guardian)