Reported by: Ijeoma G | Edited by: Gabriel Osa
In a strategic move set to reshape West Africa–Middle East economic relations, President Bola Ahmed Tinubu of Nigeria and President Mohamed bin Zayed Al Nahyan of the United Arab Emirates (UAE) formally signed a Comprehensive Economic Partnership Agreement (CEPA) on January 13, 2026, on the sidelines of the high‑profile Abu Dhabi Sustainability Week summit. The agreement marks one of the most significant bilateral trade pacts in recent Nigerian history, aimed at unlocking new markets, boosting non‑oil exports and deepening investment flows between Africa’s largest economy and one of the Middle East’s most diversified trade hubs.
The CEPA will eliminate tariffs on a vast array of goods traded between the two nations, granting duty‑free access for thousands of Nigerian products into the UAE market and dramatically expanding opportunities for manufacturers, exporters, and service providers in both countries. Under the pact, the UAE has agreed to remove tariffs on 7,315 products originating in Nigeria, while Nigeria will eliminate tariffs on 6,243 UAE products, with phased reductions over three to five years for many items. Tariff elimination is immediate on a substantial share of these goods, with some tariffs on both sides to be gradually phased out under the terms agreed by negotiators.
President Tinubu described the agreement as a “transformative step” for Nigeria’s economic prospects, underscoring its potential to support his government’s industrialisation and economic diversification agenda. He highlighted that duty‑free access for key agricultural and manufactured products into the UAE will open new frontiers for Nigerian exporters and help integrate Nigeria more deeply into global value chains. The president also said the agreement sends a strong signal to international investors about the country’s commitment to sustained economic reform and market openness.
For Nigeria, the CEPA represents a major boost to non‑oil export ambitions. The pact will allow agricultural exports such as fish, seafood, cereals, cotton and oil seeds to enter the UAE tariff‑free, with similar benefits extended to chemicals, pharmaceuticals and industrial products. Over the next few years, tariffs on machinery, vehicles, electrical equipment, apparel and furniture will also be eliminated, giving Nigerian manufacturers a more level competitive platform in one of the world’s most dynamic commercial regions.
The agreement also includes comprehensive provisions on services, opening market access across more than 100 service sectors. This will enable Nigerian professionals, consultants and firms to operate more freely within the UAE’s economy and, by extension, use the Emirates as a springboard to wider global markets. Rules of origin clauses have been incorporated to protect the integrity of tariff‑free treatment, ensuring that only products genuinely manufactured or substantially transformed in either country benefit from the elimination of duties.
Negotiations for the agreement were led by Nigeria’s Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, and her UAE counterpart, Dr. Thani bin Ahmed Al Zeyoudi. Both ministers were lauded by President Tinubu for their roles in sustaining diplomatic focus and technical rigor through what has been described as complex and sensitive discussions. The Nigerian delegation also included senior officials from the Ministry of Foreign Affairs, the National Intelligence Agency and other government bodies, reflecting the strategic priority that Abuja attaches to the pact.
Officials from both sides emphasised the wide‑ranging economic implications of the partnership. Beyond tariff elimination, the CEPA is expected to strengthen supply chains, enhance cooperation in technology, agriculture, energy and logistics sectors, and empower small and medium‑sized enterprises by reducing trade barriers and expanding market linkages. It also facilitates business mobility, allowing shorter‑term access for Nigerian business visitors and longer stays for intra‑corporate transferees, thereby fostering people‑to‑people ties and joint ventures between the private sectors of both nations.
Economists and trade analysts are heralding the agreement as a game‑changer for Nigeria’s economic diplomacy. By linking Nigeria to the UAE’s extensive global trade network—already reaching economies across Asia, Europe and Africa—the CEPA could catalyse a significant increase in export volumes, attract foreign direct investment, and create new employment opportunities for Nigeria’s youthful workforce. It also positions Nigeria as a strategic gateway for goods and services between Africa and the Gulf region, strengthening its influence within regional trade architectures such as the African Continental Free Trade Area (AfCFTA) and the Economic Community of West African States (ECOWAS).
The UAE, for its part, views the agreement as part of a broader strategy to diversify its trade portfolio and deepen economic engagement with key partners. With bilateral non‑oil trade between the two countries already growing rapidly—recording substantial year‑on‑year increases in recent periods—the CEPA is expected to accelerate this trajectory, prompting enhanced cooperation in sectors such as technology, precious metals, energy and infrastructure development. UAE officials have also underlined the pact’s role in fostering public‑private partnerships and strengthening the capacities of companies on both sides to compete in global markets.
Critically, the agreement arrives at a time when Nigeria is actively pursuing economic reforms aimed at stabilising foreign exchange, boosting industrial output and reducing reliance on oil exports. By securing preferential access to the UAE’s diversified economy, Nigerian businesses could capture new demand for goods and services beyond traditional trading partners. For the UAE, the CEPA reinforces its position as a central hub for trade and investment, particularly for firms seeking entry points into Africa’s rapidly expanding markets.
While the full economic impact of the CEPA will become clearer in the coming years, early indicators point to enhanced investor confidence and strengthened bilateral ties. The agreement has been widely welcomed by private sector representatives from both countries, who see it as a catalyst for innovation, growth and sustainable economic integration. As implementation begins, governments have pledged to establish joint oversight mechanisms to monitor progress and address any challenges arising from the liberalisation commitments.
The Nigeria‑UAE CEPA stands as a landmark milestone in contemporary trade diplomacy, reflecting a shared vision of prosperity through cooperation, open markets and strategic economic partnerships. Its effects are expected to reverberate across sectors and regions, shaping future trajectories of trade, investment and development between West Africa and the Middle East.
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