During the 2024 Korea-Africa Summit recently held, Nigerian Minister of Foreign Affairs, Yusuf Tuggar, revealed that Nigeria is reaching out to South Korea for Investment in electric vehicle initiatives within the country. Tuggar, who presented the proposal during a meeting between him and a Korean delegate at the Summit, emphasizing the potential benefits of collaboration in the sector. Tuggar highlighted Nigeria’s suitability for Korea’s electric vehicle initiatives. It was reported that the South Korean government had separately committed $24 billion towards promoting development and Trade in African countries, particularly Nigeria.
This investment opportunities search is part of the Nigerian government’s efforts to shift away from relying solely on crude oil by diversifying its economy. At the Korea-Africa Business Summit, the minister had fruitful discussions with Korean officials to seek opportunities for collaboration. Discussions at the meeting between both parties centred around expanding cooperation in several areas such as Liquefied Natural Gas (LNG), automotive manufacturing, and potential investments in electric vehicle initiatives. He reassured Korean Investors of Nigeria’s dedication to providing attractive incentives and safeguarding the well-being of Korean nationals and properties within the country.
Electric vehicle value chain on Nigeria is ripe for development.
Tuggar also praised the Korea International Cooperation Agency (KOICA) for their valuable efforts in Education and entrepreneurship within Nigeria. He urged for the continuation and growth of these programs, emphasizing the importance of language learning and cultural exchange. He reaffirmed Nigeria’s desire to secure a seat on the United Nations Security Council, underscoring the nation’s contributions to Africa and dedication to fostering Peace and denuclearization in conflict-ridden areas. He urged for increased collaboration in defence efforts, requesting assistance in acquiring both physical and non-physical tools to tackle the crises in North-East Nigeria and its neighboring areas.
According to Tuggar, the Republic of Korea has the opportunity to extract lithium, process it within Nigeria, manufacture electric vehicles on-site, and distribute them to local customers. This entire value chain is ripe for development, he explained. Korean businesses have the opportunity to shift their focus from competing in Europe and America to exploring the untapped market of Africa, as highlighted by the minister. He encouraged Korean companies to enter the electric vehicle market and mentioned Nigeria’s push to diversify its energy sources. Nigeria participated in the Africa-Korea Summit to enhance economic connections with South Korea, following a significant Export of alloys and unwrought aluminium valued at over ₦3 trillion in the fourth quarter of 2023.
Numerous companies have shown interest in Nigeria’s EV sector.
Over the years, Nigeria-Korea has maintained a high trade data. Nigeria Exports to South Korea was US$717.46 Million during 2023. In the last quarter of the 2023 financial year, the trade import between Korea and Nigeria amounted to about over ₦300 trillion. Korean businesses in Nigeria are making significant contributions to resource development and construction, showcasing Korea’s strong presence in the Nigerian market. Korean companies received a total of US$ 15 billion worth of Construction orders in 2020, making Nigeria the largest construction market for Korea in Sub-Saharan Africa.
Invest KOREA, a national agency in South Korea, reported that the country’s automotive sector manufactured over 400,000 electric vehicles in 2022. Exports of these vehicles totalled 267,000 units. This data solidified South Korea’s position as the fifth-largest producer of automobiles worldwide. Numerous companies have expressed interest in Nigeria’s electric vehicle sector, with intentions to manufacture a large number of EVs within the country. This decision stems from the increasing cost of petrol following the removal of Fuel Subsidies and the country’s decision to shift away from fossil fuel, ultimately making electric vehicles an appealing alternative for the people of Nigeria.
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Thus, the federal government is looking to entice Korea with incentives, aiming to draw in investment from a major player in EV manufacturing. According to Mr. Joseph Osanipin, the Director General of NADDC, the government understands the potential investment EVs could bring to the country. He also stated that the current administration is dedicated to working with key players to promote these advancements. As Nigeria continues to bolster its Sustainable Energy shift, the country is increasingly seeking investment from various partners to boost the project.