Ms. Samuela Isopi, the European Union (EU) Ambassador to Nigeria and the Economic Community of West African States (ECOWAS), has pointed out that the EU continues to be Nigeria’s largest trading partner, with a Trade volume of nearly €35 billion in 2023, which represents approximately one-third of Nigeria’s foreign investment. This was shared by the ambassador during the 9th Edition of the Nigeria-EU Business Forum 2024 in Abuja. The European Union’s Investment in Nigeria is significant, estimated at €26 billion, making it the country’s largest foreign investor, accounting for one third of Nigeria’s total Foreign Direct Investment (FDI) stock.
Isopi provided details on the recent advancements efforts in enhancing trade ties with Nigeria, highlighting a fruitful Strategic Dialogue held in Abuja at the conclusion of last year. The event was jointly led by EU Commissioner for International Partnership Jutta Urpilainen and Minister of Budget and Economic Planning Senator Atiku Bagudu, focusing on future prospects and collaboration. Both parties are seeking to strengthen economic connections and boost investments through the exploration of a Sustainable Investment Facilitation Agreement, she stated.
EPA aims to promote economic diversification.
She said if Nigeria were to reassess its stance on the Economic Partnership Agreement (EPA) with the European Union, it could potentially unlock opportunities to enter the vast European Union market, which consists of more than 400 million potential consumers. Specifically, the agreement aims to promote Economic Diversification and boost local value-added industries in alignment with the country’s industrial goals. The European Union ambassador stated that tangible investments would be promoted in Nigeria through the Business Forum, aligning with the Renewed Hope Agenda and the EU-Nigeria partnership. Key topics discussed at the forum included economic openness and investment, as well as the significance of Agriculture in enhancing economic diversification and bolstering Food Security measures.
Furthermore, during the forum, strategies for accelerating the transition to a digitally connected and competitive Global Economy were deliberated. The conversation also delved into healthcare, emphasizing investments in human capital and the importance of strong supply chains. Isopi highlighted the recent signing of a €300,000 agreement between the European Union and Eurocham Nigeria to aid in the continued growth of the Chamber. In partnership with member states and Eurocham Nigeria, the EU successfully completed a groundbreaking project mapping the presence of European companies in Nigeria for the first time.
Manufacturing was the major sector for EU businesses in Nigeria.
Findings from the survey shows a remarkable discovery of more than 230 businesses from 18 member states were operating in Nigeria. France, Germany, and the Netherlands accounted for the majority (60 percent) of these companies. Manufacturing was identified as the major sector for European Union businesses in Nigeria, with professional services, logistics, and Construction following closely behind. The once dominant extractive industries such as oil and gas now only make up less than 10 percent of investments now. This survey highlights the positive impact of the EU-Nigeria relations on Nigeria’s Economic Development and diversification.
Even with the EU’s recognition of Nigeria’s current hardships, including high Inflation and Naira devaluation, it also pointed out some positive aspects. The Ambassador noted that the ability for foreign Investors to repatriate profits is a crucial factor for investment in the country. Looking at the situation from an European investor view, the recent removal of foreign exchange restrictions on 43 imported items is a positive action describing it as a much-needed and long delayed action. Building investor confidence is a gradual process, but addressing these issues was clearly a key focus, Isopi added.
Related Article: EU firms in Nigeria create 130,000 jobs
During his address at the Forum, Senator Atiku Bagadu, the Minister of Budget and Economic Planning, expressed confidence in Nigeria’s capacity to attract substantial investment amounts. He said the country has potential to offer returns that surpass those of other global markets. Senator Bagadu also noted that it is necessary to establish a mutually advantageous investment platform that would stimulate Economic Growth in Nigeria. He said the European Union and Nigeria have the potential to serve as a blueprint for collaboration that promotes economic growth within a global context.