The Consulate-General of the Federal Republic of Germany in Lagos, Weert Borner, has highlighted the tremendous value of the Trade relations between Nigeria and Germany. He noted that trade between both nations reached $3 billion in 2023, with Nigeria reaping greater benefits from the agreement. Borner further elaborated that during the review period, Nigeria exported $2 billion worth of agricultural commodities and crude oil to Germany, while $1 billion flowed to Nigeria mostly in the form of chemicals and machinery from Germany.
Borner made this revelation at a press conference to announce the 11th German-Nigerian Business Forum, which is set to take place in Lagos in October. Despite the challenging economic environment in Nigeria, Borner clarified that Germany is eager to expand and diversify its Investment portfolio, with over 90 operational German enterprises present. Providing specifics about the business forum, he explained that it is an annual gathering organized by the German-Nigeria Chamber of Commerce, German Federal Ministry for Economic Affairs and Climate Action, and German Missions in Nigeria, among other organizations.
Collaborations centered on diplomatic and economic ties.
Timo Pleyer, a delegate from German Industry and Commerce in Nigeria, noted that the conference’s goal was to establish a forum for discussion of current issues by bringing together a wide range of senior representatives and decision-makers from the German and Nigerian public and private sectors. It also seeks to draw attention to business sector prospects for collaborations between Germany and Nigeria, according to Pleyer. He said that the panel discussions at the 11th German-Nigerian Business Forum would be led by industry professionals from Germany and Nigeria and would center on expert dialogue and vision on Nigeria’s future.
According to him, the key topics to be covered are energy efficiency and renewable resources, construction, agribusiness and food processing, and technical vocational Education and training. Over the years, Nigeria and Germany have consistently maintained robust diplomatic, economic, and cultural ties. Leaders from Germany and Nigeria have visited each other on a high level, indicating a shared desire to fortify relations. These trips frequently center on security, development assistance, and economic collaboration. Germany is one of Nigeria’s main economic partners in Europe, and the two countries have strong trade ties.
Both countries have entered into multiple bilateral agreements.
Germany exports equipment, automobiles, chemicals, and other manufactured items from Nigeria, whereas Nigeria exports significant amounts of agricultural products and crude oil to Germany. Nigeria also exports solid minerals to Germany, such as columbite and tin, which are utilized in a variety of industrial purposes. With bilateral trade estimated at several billion euros annually, the overall volume of trade between Nigeria and Germany has varied over time but has generally remained substantial. The commercial partnership is still expanding in spite of obstacles like the global economic downturns and Nigeria’s economic reforms.
With the goal of strengthening their commercial ties, both countries have entered into multiple types of bilateral agreements. Trade, investment, and technological cooperation are made easier by these accords in important industries like agriculture, energy, and infrastructure. Nigeria and Germany do not have a separate free trade agreement, although they do trade through the Economic Partnership Agreements (EPAs) that the European Union has with African nations. These agreements seek to lower Tariffs and encourage investment in order to facilitate trade. Both nations are working to broaden and diversify their economic interactions as their relationship continues to flourish.
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Due to its high value of crude oil exports contrasted to imports, Nigeria have been able to maintain a positive trade balance with Germany in 2023. Over the past 10 years, the bilateral trade agreements between Germany and Nigeria have resulted in a steady yearly growth rate of the trade volume, ranging from 5 to 7%. German businesses have made around €500 million in investments in Nigeria, mostly in energy and Infrastructure projects in the past five years. The trade volume is anticipated to increase further, with estimates suggesting that bilateral trade may have risen by 10 percent by 2025.