In 1991, Taiwan and Nigeria entered into an investment protection agreement that has proven to be beneficial for both parties. Taiwan is now urging Nigeria to consider renewing this agreement as it continues to demonstrate its commitment to fostering a positive Investment environment. Former Military Head of State, Ibrahim Babangida, initiated diplomatic ties with Taiwan which has now led to the East Asian nation seeking the extension of this agreement after 33 years. This move aims to create a more secure environment for investment between the two countries.
As of 2022, Taiwan has a Trade relationship with Nigeria that amounts to roughly $1 billion. However, Taiwanese investors have shown a desire to increase their involvement in the country, particularly in the fields of technology, education, and agriculture. In a recent interview that was in Lagos, Andy Yih-Ping Liu, the Ambassador of Taiwan to Nigeria and Representative of the Taipei Trade Office, emphasized the importance of renewing the trade agreement that was initially signed in 1991.
Despite attempts to renew it, no progress has been made.
Liu believes that this renewal will be instrumental in enhancing the trade relationship between Taiwan and Nigeria. Furthermore, he mentioned that there are discussions underway for Taiwan to collaborate with the Ministry of Industry, Trade and Investment to establish a more comprehensive trade agreement, similar to the one recently finalized with the British Government. His statement highlighted the willingness of Taiwan to welcome Nigerian Investors looking to establish companies in the country, emphasizing the importance of having an Investment Protection agreement in place to ensure the Security of their investments.
It is important for the Nigerian government to explore the possibility of entering into a more robust trade and economic agreement with Taiwan by signing the investment protection agreement soon. Both Britain and Taiwan have already signed agreements with each other and with Nigeria, so it is worth considering why Nigeria has not yet taken this step. It has been two years since the agreement has not been signed. Despite attempts to renew it, no progress has been made.
British & Nigerian governments successfully signed an agreement.
However, just over a month ago, both the British and Nigerian governments successfully signed the agreement. Similarly, in November of last year, an enhanced investment agreement was signed between the Canadian government and Taiwan. He mentioned that while Britain and Canada are progressing quickly in their relationship with Taiwan, Nigeria seems to be stuck in a difficult situation. Serving as a de facto embassy, the Taipei Trade Office in Nigeria advocates for the interests of Taiwan within the Federal Republic of Nigeria where formal diplomatic relations are not established.
The Nigeria Trade Office in New Taipei is the equivalent office of the Taiwan Trade Office in Nigeria. Taiwan is responsible for overseeing its interests in several African countries including Cameroon, Benin, Ghana, Gambia, Liberia, and Sierra Leone. In the past, Taiwan had diplomatic ties with Gambia and even had an embassy in Banjul. Unfortunately, in 2013 President Yahya Jammeh decided to sever these diplomatic relations. Similarly, Liberia also cut ties with Taipei in 2003. Morgan Chao is currently leading as the Representative of the organization.
Related Article: Taiwan aims for New Investments in Nigeria
Additionally, the Mission first set up in Lagos in 1991, but later moved to Abuja in 2001, ignoring Beijing’s insistence that it should be situated away from Nigeria’s capital city. Nigeria’s government made a formal request in January 2017 for Taiwan to move their office from Abuja to Lagos. The relocation process began on December 8, 2017, and the new office in Lagos was officially opened on January 5, 2018, renamed as the Taipei Trade Office in the Federal Republic of Nigeria.