The United States is preparing to provide Nigerian businesses with unprecedented access to its massive $120 trillion capital market, offering new pathways for financing innovation and business expansion across Africa’s largest economy.

Strategic Partnership for Economic Growth

US Ambassador to Nigeria David Greene Mills outlined the initiative during a fireside chat at Lagos Business School, describing America’s financial system as a crucial source of venture capital and long-term investment opportunities for Nigerian entrepreneurs.

The ambassador emphasized that the liquidity and efficiency of US financial markets position them as ideal platforms for supporting Nigerian business growth and innovation across multiple sectors.

Strong Foundation of Existing Trade Relations

The announcement builds on an already robust economic relationship between the two nations. Nigeria currently ranks as America’s second-largest trading partner in Africa, with bilateral trade in goods and services reaching nearly $13 billion in 2024.

US foreign direct investment in Nigeria has shown consistent growth, rising to $6.5 billion in 2024—a 5.5% increase from the previous year. This investment flows through more than 80 major American companies currently operating across Nigerian sectors including pharmaceuticals, technology, and manufacturing.

American Business Presence Expanding

Several prominent US corporations have established significant operations in Nigeria, particularly in the Lagos Free Zone and Alaro City. Major brands including Kellogg’s, Colgate-Palmolive, and Caterpillar have set up facilities in these strategic locations, demonstrating growing confidence in Nigeria’s business environment.

The venture capital landscape already shows strong US involvement, with American firms providing 60% of Nigeria’s venture capital funding. Mills indicated this percentage could increase significantly as access to US capital markets expands.

People-to-People Connections Drive Partnership

The economic relationship is reinforced by substantial human connections between both countries. Over 750,000 Nigerians currently live in the United States, representing the largest African diaspora community in America. Additionally, more than 20,000 Nigerian students are enrolled in US universities, strengthening educational and cultural ties.

Future-Focused Investment Strategy

Mills highlighted Nigeria’s demographic trajectory as a key factor in the partnership’s long-term potential. With Nigeria projected to become the world’s third most populous country by 2050—surpassing the United States with over 375 million people—the ambassador sees enormous growth opportunities ahead.

“We will continue to invest in development through expanded trade and private investment because it is the private sector that drives economic growth,” Mills stated, emphasizing the shift toward market-driven rather than aid-based economic cooperation.

Creating Enabling Environment

The ambassador stressed that success will depend on fostering a business environment that encourages high-impact investment and collaboration. He identified increasing trade, investment, and business linkages between the two nations as a central priority of his diplomatic mission.

The initiative represents a significant evolution in US-Nigeria economic relations, moving beyond traditional trade partnerships toward comprehensive capital market integration designed to fuel mutual economic growth.