U.S. to Unlock $120 Trillion Capital Market for Nigerian Firms

The United States government has announced plans to open access for Nigerian businesses to its vast $120 trillion capital market, providing a powerful avenue for financing innovation and driving growth. This initiative was disclosed by the U.S. Ambassador to Nigeria, David Greene Mills, during a recent fireside chat hosted by Lagos Business School. Ambassador Mills emphasised that the depth, liquidity, and efficiency of the U.S. financial system make it a key source of venture capital and long-term investment for emerging markets like Nigeria. He stated that one of the U.S. government’s current priorities is to expand its commercial presence in Nigeria and encourage more American companies, ranging from startups to multinationals, to explore opportunities in Africa’s largest economy.

“Nigeria is already the United States’ second-largest trading partner in Africa,” Mills noted, “with two-way trade in goods and services reaching nearly $13 billion in 2024.” According to him, more than 80 major U.S. firms currently operate in Nigeria, across sectors including pharmaceuticals, technology, and manufacturing.

He pointed to the growing presence of American companies within Nigeria’s special economic zones, such as the Lagos Free Zone and Alaro City, where firms like Kellogg’s, Colgate-Palmolive, and Caterpillar are already active. Mills also revealed that American firms account for 60 percent of Nigeria’s venture capital funding a number he hopes will grow with increased access to U.S. capital markets.

“We must foster an enabling business environment that catalyzes this kind of high-impact investment,” Mills urged, calling for collaboration between the Nigerian government, private sector, and international partners.

Strengthening Economic and Cultural Ties

In addition to fostering investment, Ambassador Mills highlighted the broader U.S.-Nigeria relationship, which includes strong cultural and educational ties. He noted that the Nigerian diaspora in the U.S. , now over 750,000 strong is the largest African diaspora group in the country. More than 20,000 Nigerian students are currently enrolled in U.S. universities, strengthening people-to-people connections. On the trade front, U.S. foreign direct investment (FDI) in Nigeria grew to $6.5 billion in 2024 a 5.5 percent increase from the previous year. Mills underscored that the U.S. remains one of Nigeria’s leading foreign investors and will continue to deepen economic cooperation.

Looking ahead, Mills highlighted Nigeria’s demographic significance, stating that the country is projected to surpass the U.S. as the world’s third most populous nation by 2050, with a population exceeding 375 million. “We will continue to invest in development, but we will do so through expanded trade and private investment because it is the private sector—not assistance—that drives economic growth,” he stated. Ambassador Mills concluded by reaffirming his mandate to enhance trade, investment, and business linkages between the two nations, positioning the U.S. capital market as a vital resource for Nigerian entrepreneurs poised to innovate and grow.