Zero tariffs: 7,000+ Nigerian products gains duty-free access to UAE markets

By: Chidozie Nwali

Nigeria and the United Arab Emirates (UAE) have entered a new era of economic cooperation, signing a landmark Comprehensive Economic Partnership Agreement (CEPA) that effectively dismantles trade barriers on over 13,000 products between both countries.

The deal, signed on Tuesday, on the sidelines of the Abu Dhabi Sustainability Week, promises to transform the two nations into a unified trade corridor, eliminating tariffs on everything from Nigerian agricultural exports to UAE-manufactured industrial machinery.

Under the agreement, both nations have committed to a systematic removal of customs duties designed to protect local industries while encouraging rapid trade growth.

Nigerian minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, said the UAE will immediately eliminate tariffs on 7,315 Nigerian exports. Roughly 38% of these—including fish, seafood, cereals, oil seeds, cotton, and pharmaceuticals—are now duty-free, said in a statement.

Tariffs on high-value manufactured goods like machinery, vehicles, electrical equipment, apparel, and furniture will be phased out gradually, reaching zero by 2031.

The trade minister also noted that Nigeria will eliminate tariffs on 6,243 UAE products; immediately scrapping import tariffs on 63% of these items (3,949 products), focusing on industrial inputs, capital goods, and machinery to bolster local manufacturing.

The remaining 37% of products, largely consumer goods, will see duties removed over the next five years.

“The Federal Ministry of Industry, Trade and Investment, working with key MDAs such as the Nigeria Customs Service (NCS), alongside FMITI agencies such as the Nigerian Export Promotion Council (NEPC), and the Nigerian Investment Promotion Commission (NIPC) and the Standards Organization of Nigeria (SON) will ensure that Nigerian businesses, and the investors we host, have the information, support, and facilitation they need to take swift and full advantage of this Agreement,” She said.

The minister highlighted that the agreement goes beyond duty free exports, it also includes a 90-day entry visa: Nigerian business travelers can now enter the UAE for up to 90 days a year to explore trade opportunities.

Also, the deal introduces a three-year renewable “intra-corporate transfer” arrangement, allowing Nigerian managers and specialists to relocate and operate their businesses within the UAE.

The agreement is expected to unlock a pipeline of over $10 billion in investments across Nigeria’s energy, digital banking, and infrastructure sectors.

Safeguarding National Interests

Despite the sweeping liberalization, Nigeria has maintained its Import Prohibition List to protect sensitive domestic sectors. Similarly, the UAE has excluded or prohibited 593 products—including pork and used tires—from the deal.

A dedicated Rules of Origin chapter has been established to ensure that only goods genuinely produced in either Nigeria or the UAE benefit from the duty-free status, preventing third-party countries from “dumping” goods through the corridor.

With non-oil trade between the two nations already hitting $4.3 billion in 2024, this agreement will likely double that figure by the end of the decade. For Nigeria, the CEPA serves as a strategic gateway into Middle Eastern and Asian markets, while for the UAE, it solidifies Nigeria’s position as the primary hub for its expansion into the African Continental Free Trade Area (AfCFTA).