The Joe Biden administration has chosen to deploy Wally Adeyemo, the United States Deputy Treasury Secretary, to Nigeria in the coming week. This move is part of a broader effort to strengthen economic relationships with Africa and address the expanding influence of China on the continent.
As reported by the New York Times, this visit coincides with President Bola Tinubu’s ongoing reforms aimed at revitalizing Nigeria’s sluggish economy. It comes several months after President Biden’s commitment to intensify U.S. engagement with Africa, involving an investment of over $50 billion over the next three years.
The United States has been actively seeking to regain its foothold in the global geopolitical rivalry with China and Russia in establishing connections within Africa. Nigeria, being the largest economy in Africa, is considered a vital component of these efforts. The Biden administration believes that Nigeria, a democracy with abundant natural resources, has the potential to become an economic cornerstone for the United States on the continent.
Several prominent Biden administration officials, including Secretary of State Antony J. Blinken, have previously visited Nigeria during the first term of President Biden. However, Wally Adeyemo holds a unique position as an emissary due to his personal background. He was born in Ibadan, one of Nigeria’s largest cities, and emigrated to California with his family at the age of two.
This trip marks Adeyemo’s first return to Nigeria in decades, and he will do so as the highest-ranking member of the African diaspora within the Biden administration. His ascent in the U.S. government has been met with enthusiasm in Nigeria in recent years.
Adeyemo views this visit as a significant opportunity, both personally and professionally, given Nigeria’s status as Africa’s largest economy and its substantial demographic growth. In an interview with The New York Times, he stated, “It’s just a great chance for me to talk about how we can deepen the economic relationship and the strategic relationship at a moment when Nigeria has a government that’s already taken really important steps in terms of economic reform.”
While in Lagos, Adeyemo plans to hold meetings with government officials and representatives from the technology, entertainment, and finance sectors. He also intends to engage with American companies operating in Nigeria and visit a local project funded by the U.S. government.
The Biden administration regards Nigeria as an attractive prospect due to its sizable young workforce. Nigeria has made efforts to enhance its appeal to foreign investors by relaxing currency controls and discontinuing fuel subsidies, which had imposed a strain on its public finances.
Adeyemo’s message during his visit to Nigeria will center on the United States’ desire to be a partner in deepening the investment and trade relationship. He will address topics such as combating corruption, safeguarding the financial system against illicit finance risks, and encouraging economic diversification away from petroleum reliance while embracing renewable energy.
This outreach from the United States comes at a time when Nigeria faces significant challenges, including the highest inflation rates in nearly two decades and substantial debt burdens. Nigeria owes over $20 billion to international financial institutions such as the World Bank and the International Monetary Fund, as well as $4.7 billion to China, its largest bilateral creditor.
The Biden administration has been urging China to offer debt relief to African nations. However, Nigeria has not yet sought debt relief through the “common framework” initiative established by the Group of 20 nations.
While U.S. officials have been cautious not to frame their interests in Africa as a direct competition with China, a White House document outlining Biden’s strategy in sub-Saharan Africa alluded to efforts to counter “harmful activities” by China, Russia, and other foreign actors.
Regarding China’s influence in Nigeria, Adeyemo emphasized shared values and the United States’ approach, which focuses on investment and foreign direct investment to enable Nigerians to build a thriving economy without excessive reliance on external debt.
