THE LAUNCH OF THE US-NIGERIA BI-NATIONAL COMMISSION
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On Monday, April 6, 2010, the United States launched the US-Nigerian Bi-National Commission to bolster bilateral ties on energy, regional security, good governance, food security and better agricultural development and a range of other issues. The Secretary to the Government of the Federation, Alhaji Yayale Ahmed and the US Secretary of State, Hillary Rodham Clinton were signatories on behalf of the two countries.

The new "strategic partnership" makes Nigeria the first African nation to be afforded such a status under the Obama administration. The partnership provides a forum for talks on creating greater transparency and improving Nigeria's accountability and fiscal responsibility, thereby helping the country fulfill its potential as a regional leader.

The heart of the US-Nigeria accord is an emphasis on good "governance, transparency and integrity." The goal is to help Nigeria attain its full potential including the critically important area of energy, its greatest export. It will also help provide stability in the volatile Niger Delta area where militant attacks have severely hampered oil production and will also lead the US to thwarting potential outposts of Islamist militancy.

Furthermore, it is expected to improve the trade prospects for both countries in the fields of tourism & hospitality, mining, telecommunications, aviation & transport, and SME development. Other areas such as banking, infrastructure, construction, agriculture, health, maritime, environment  and insurance are expected to feature.

Nigeria envisages this pact as an important milestone in trade ties with the US especially after the country failed to take advantage of the African Growth and Opportunity Act (AGOA) enacted in 2000, which enabled the country to penetrate the US market. Similarly, through the Trade and Investment Framework Agreement (TIFA) which is in effect again from 2000, both countries have not been able to achieve the desired results despite an uptick in some of the trade areas.

Nigeria is the United States' largest trading partner in sub-Saharan Africa, thanks in large part to its petroleum industry. Nigerian oil comprises eight percent of US imports, while about half of the oil produced in Nigeria goes to the United States. Results by the State Department show that, US-Nigerian trade was valued at more than 42 billion dollars in 2008. The United States is also the largest foreign investor in Nigeria’s offshore oil and gas industries led by Exxon-Mobil and Chevron.

Nigeria, which holds a non-permanent seat on the UN Security Council, imports 90 percent of its energy, despite producing 2.3 million barrels of crude per day. As a result of the new relationship, the US Government says, “We can help provide some answers and solutions to some of Nigeria’s power deficiencies”.