Nigeria and the United Arab Emirates (UAE) signed the Comprehensive Economic Partnership Agreement (CEPA) on Tuesday, January 13, 2026, strengthening their economic ties.
This historic agreement represents a substantial departure from past diplomatic hitches to a future of deep economic cooperation.
A statement from the State House said the bilateral agreement will remove trade barriers, improve market access, and provide stronger protections and certainty for investors and businesses. It said the deal is a strategic one aimed at expanding Nigeria’s non-oil exports, attracting foreign direct investment, supporting industrialisation, job creation, and positioning Nigeria as a gateway to African markets.
Here are five key benefits of the Nigeria-UAE Bilateral Agreement for Nigeria.
1. Massive Tariff Elimination for Exporters
Under the CEPA, the UAE has committed to eliminating tariffs on over 7,000 Nigerian products.
Immediate Access: Agricultural and primary goods such as fish, seafood, cereals, oil seeds, cotton, pharmaceuticals, and certain chemicals can now enter the UAE duty-free.
Phased Access: Over the next three to five years, tariffs will also be removed for manufactured goods, including machinery, vehicles, electrical equipment, and apparel, giving Nigerian manufacturers a competitive edge in a major global trading hub.
2. Boost in Foreign Direct Investment (FDI)
The agreement provides a legal framework that gives UAE investors “clarity and confidence” to invest in Nigeria’s productive sectors.
Infrastructure: UAE institutional investors are already backing major projects like the Lagos–Calabar Coastal Road.
Key Sectors: The deal is expected to accelerate investment in digital banking, real estate, agriculture, and retail, with a pipeline of projected investments exceeding $10 billion.
RELATED NEWS
- COP 30: NGOs Warn Gov’t Against Monetising Nigeria’s Natural Assets
- How SMEs can Adopt AI to Achieve $1trn Economy Target – Expert
- COP30: Presidency Defends 423-Man Nigerian Delegation Amid Obi Criticism
3. Energy and Power Infrastructure Development
A major pillar of the partnership focuses on gas-to-power projects and renewable energy.
Through the agreement, the UAE will support Nigeria’s efforts to convert its vast gas reserves into electricity to solve persistent power outages.
Areas of cooperation also include the development of climate-smart infrastructure and renewable energy, aligning with Nigeria’s goal to mobilize $30 billion annually in green finance, as stated by President Bola Tinubu at the Abu Dhabi Sustainability Summit on Tuesday.
4. Enhanced Mobility and Business Rights
The agreement removes long-standing barriers to business travel and operations:
Visa Access: Business visitors can now enter the UAE for up to 90 days within a 12-month period.
Corporate Presence: Nigerian companies can now establish branches, subsidiaries, or new corporate entities in the UAE more easily.
Talent Transfer: Specialists and executives can relocate to the UAE under renewable three-year visas, facilitating the exchange of skills and professional services.
5. Strengthening National Industrialization
By eliminating tariffs on approximately 6,000 products imported from the UAE—specifically industrial inputs, capital goods, and machinery—Nigeria is lowering the cost of production for local industries. This is designed to: strengthen Nigeria’s productive capacity, create quality jobs for the youthful population, and position the country as a strategic “gateway” for international investors looking to access the wider African Continental Free Trade Area (AfCFTA).
How the Agreement will be Implemented
The Presidency said the implementation will be led by the Federal Ministry of Industry, Trade and Investment in collaboration with the Nigeria Customs Service (NCS), Nigerian Export Promotion Council (NEPC), the Nigerian Investment Promotion Commission (NIPC), Standards Organisation of Nigeria (SON), and other relevant MDAS.
“The focus will be on swift and practical implementation, in line with the President’s ‘Nigeria First’ directive,” it added.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.
