New US tariffs policy is a message of cooperation, not confrontation, says Amb. Mills JR.

In a recent media interview, US Ambassador to Nigeria, His Excellency Richard Mills Jr., highlighted the new US administration’s focus on commercial diplomacy and an investment-led strategy in Africa. He emphasized the importance of building strong trade ties and addressing market reforms to improve the business environment. Stanley Ihedigbo captured the report.

Which area is the United States of America’s new administration focused on?

We have always been focused, but I think you’re seeing a new approach under the new administration in Washington. It’s an investment-led strategy—a strategy that asks: how do we want to engage primarily? And the answer is, we want to engage primarily through commercial and trade ties, focusing on how to build those ties and putting more resources and effort into that. I don’t want to give a six-point PowerPoint presentation, but I would just highlight key differences and key new steps we’re going to take as part of this new commercial diplomacy strategy.
The first point: commercial diplomacy has now been put at the heart of our work here at the Mission. The Secretary of State and the President have made that clear to us. Secondly, we’re going to work more closely with key African governments—our partners—on market reforms, precisely as I indicated: reforms that will improve the business environment and that are suggested to us by the private sector and other stakeholders. What do you see as the obstacles to the trade department?
Third, we want to focus on key infrastructure projects. American value-added involvement in those projects can be a catalyst in the growth sector. For example, some of you may know the US government has been behind the Lobito Corridor in Angola—a key infrastructure project designed to move critical minerals into the Atlantic corridor for shipping. That kind of project will now be a priority.
Also, we’ll be looking at more commercial diplomacy and trade missions. I think US states are going to bring a lot with them. Another point of the strategy is that we will try to connect US export-ready businesses with Nigerian entrepreneurs and businesses. They say our efficient, liquid capital markets are a strength.
And lastly, this is on us. We know that the tools we use to promote trade and development—such as the US Trade and Development Agency, our Development Finance Corporation, Export-Import Bank—need to be quicker and more responsive if US companies are going to be encouraged to come here. President Trump’s administration has made it clear that this will be a focus.
So that’s the kind of new policy approach we’re shaping here in Nigeria.

You mentioned your engagement with American businesses and those on this corridor. What specific market reforms have been identified by the American Business Council or these businesses to improve the ease of doing business in Nigeria? You referenced policies, but how will these reforms attract small-scale investors and boost foreign direct investment in the country?

Well, that’s a really powerful and important question, and you’re right to call me back and hold me to these statements. Let me start by saying we poll the American business community regularly through many channels: What are your obstacles? What’s making the business environment challenging?
I want to commend the current leadership in Nigeria, both at the federal and many state levels. They listen to us when we raise serious issues identified by our businesses. That’s important to put out front. The American business community feels that we’ve seen some significant economic reforms in the last several years, and we believe they will begin, hopefully, to have impact.
We’ve also seen tax reform move forward, which has been a major concern for our businesses. For example, US businesses reported 67 different federal taxes, including one on wheelbarrows—clearly a leftover from another era. So the tax reform bill is very important.
Those are the kinds of macroeconomic reforms we’ve started to see. Of course, US businesses say there’s more to be done. The government sector—particularly electricity distribution and transmission capacity—still needs serious improvement for many US firms, especially in the tech sector, which is drawn to the country’s incredible talent. There are also concrete regulatory issues—congestion and a lack of clarity in regulations that are perceived as difficult to follow.

How do you perceive the contribution of the Nigerian diaspora in advancing the US–Nigerian commercial and investment partnership?

There are 750,000 documented, legal Nigerians and Nigerian-Americans in the United States. Many of you know they are one of the most successful diaspora groups in America. Nigerian-Americans have a higher per capita income than the US national average.
I’ve had the opportunity to meet with some of the diaspora organizations here in Lagos. The diaspora supports in two key ways. First, of course, they are a source of enormous financial input—over 20 billion US dollars. That’s something the Nigerian government should leverage more effectively. More importantly, we must be honest—many in the US business community still perceive Nigeria as a risky or unstable place compared to, say, East Africa. We are trying to combat that, but real change comes from Nigerian-Americans who travel back and forth and can tell others in the US business and media communities that Nigeria is a land of opportunity. Yes, you need to be savvy and understand the local context—but it’s worth the opportunity and perhaps some risk.
Here’s an example: a Nigerian-American with a healthcare business in the US worked with our Mission for a long time to bring pharmaceutical and healthcare services into Nigeria. Despite concerns—security, logistics—he entered the market, found a Nigerian partner, and brought in imaging equipment like CAT scans and mammograms. His commitment isn’t just to sell products. He provides training for equipment maintenance and upgrades over time. Because he’s comfortable coming back and knows Nigerians are comfortable in the States, he can build that bridge. That’s the kind of asset Nigeria has in its diaspora.

The whole world has been following the news about the US administration’s tariffs and negotiations with various countries. How does the new tariffs policy factor into this renewed emphasis on commercial diplomacy with Africa?

Let me begin by saying the tariffs announced by President Trump are designed to address what the administration sees as unfair trading relationships and practices that led to an unsustainable US trade deficit. They are not meant to be punitive or to hurt other economies. They are designed to recalibrate trade relationships with US partners. What the President hopes is that partners will acknowledge discrepancies in current practices and engage with the US to restore balance and a level playing field. We’ve told the Nigerian government, for instance: if you want to address the 10% tariff that has been imposed, come to us and address the top trade barriers to US imports into Nigeria. Then we can work toward balance and possibly remove the tariffs. As you likely know, 97% of Nigerian exports to the US by value were exempt from these tariffs—only 3% are affected. Still, that 3% can have a significant impact. We are committed to working with Nigeria to eliminate those barriers and build an equitable, free trade relationship.

What are the US government’s views about Chinese commercial engagement in Nigeria? Is the US concerned about China’s growing influence on the continent?

Yes, China. Let me be clear: sometimes the media overplays the US position. This is not the second Cold War. We are not asking friends or partners to choose sides. We believe every nation has the sovereign right to choose its economic partners. We only want to ensure that partners make informed decisions and that there is a level playing field.
If Nigerian officials have full knowledge when choosing infrastructure procurement partners—whether for roads, bridges, or railways—then the market will often show that American companies are the best option. It’s not my role to criticize Chinese companies. But it is important that Nigerian firms and government bodies fully understand what they’re getting into with any partnership. US companies offer advantages: access to the largest capital markets, transparent supply chains, strong labour and environmental standards, and independent private-sector models free from government control. Illegal and unregulated mining is often in the news here, and rarely do you see US companies involved. That should tell you something. We want fair competition, and we believe we can thrive on a level playing field.

How can Nigerians at the grassroots benefit from agriculture projects?

We’re looking to get into the agribusiness sector. We can add value in farming equipment and technology, and also by offering access to the US market for Nigerian agricultural products.
One of the barriers Nigerian farmers face is navigating phytosanitary and health standards. We hope that through the commercial investment partnership, we can create ideas to simplify these requirements for exporters. On our side, we’ve seen tariffs and full import bans on many US agricultural products entering Nigeria. That’s not the right solution for Nigeria’s food insecurity, and we want to address that. To learn more, visit the US Consulate’s website at nigeriastate.gov and explore the Foreign Agricultural Service page. You’ll find current projects and information on how to get involved.

In reality, how has the US helped influence Nigerian policymakers to be more accountable to their citizens?

First, accountability is primarily the responsibility of Nigerian citizens. Nigeria is rightly a proud democracy. There are flaws—as in all democracies—but I believe this country has dedicated citizens and activists who can hold leaders accountable. The US wants to be a friend to those working for accountability. We try to provide platforms, using our convening power. Sometimes we can get government officials and stakeholders into the same room to discuss issues. We use our social media, outreach, and diplomatic dialogues to promote accountability. We also have tools like visa sanctions, which we used in 2023 when we warned that interference in the presidential election would have consequences.
But the most effective work often happens behind closed doors—telling a minister directly that a lack of accountability will damage US relations and block investment. We advocate publicly and privately to support Nigerians seeking transparency.

What new opportunities or barriers should Nigerian business owners anticipate in expanding trade relations or attracting American investments?

As I mentioned, the two most common concerns from US businesses are: lack of regulatory clarity and unreliable electricity. Regulations often lack transparency, are difficult to access, and come with unclear goals—whether in energy, tech, or internet services.
One promising initiative is the new Business Environment Improvement Council. One major innovation—credited to the current Minister of Trade—is the introduction of regulatory impact assessments. These assess how new regulations will affect businesses before implementation. In the US, these assessments are public. In Nigeria, they are not yet, and making them public could be a great improvement. The second major barrier is electricity. Reliable, consistent power is a major concern, especially for tech firms like Microsoft, Google, and Meta that are already here. Until that issue improves, it will hamper trade and investment—but workarounds exist, and we help our businesses find them. Many firms now ensure reliable power independently.

Lack of infrastructure, especially power, is a major challenge for Nigerian businesses. How can commercial partnerships realistically help address this to drive economic growth?

It’s a major issue for US investors as well. Under President Biden, we had the Power Africa initiative—a US government effort to coordinate with private sector actors to solve energy issues across the continent. One promising approach is off-grid, small-scale power systems that are not connected to the national grid but shared cooperatively among farms and businesses. American companies have strong technology in this space.