As Taiwan holds its presidential election today, January 13, it is observed that the poll result is important for Nigeria, given Taiwan’s position as the second most important African commercial trading partner to Nigeria. Meanwhile, Nigeria, which is Africa’s leading economy, is Taiwan’s third largest trading partner in the African continent, after Angola and South Africa. The trajectory of the Taiwan-Nigerian relationship will be influenced by the outcome of the election, which will determine whether it will decline, strengthen, or remain stagnant. The year 2024 marks a significant milestone of 33 years since Taiwan’s trade mission was established in Nigeria to foster and enhance their economic ties.
In 2020, the total trade between Nigeria and Taiwan amounted to $295 million, experiencing a 17.47% decline compared to the previous year. However, the combined trade volume between the two nations reached $1 billion in 2021, indicating a significant increase. Out of this amount, Nigerian exports to Taiwan contributed $199 million, while Taiwanese exports to Nigeria comprised the remaining $95 million. These values highlight the growing economic and trade interactions between both countries, showcasing a promising bilateral relationship. Nigeria’s major export to Taiwan includes; crude oil, natural gas, Sesame, cashew nuts and solid minerals while Nigeria imports machinery, refined oil and some chemicals from Taiwan.
Both countries have forged some mutual connections.
Taiwan, a dynamic nation, contributes to Nigeria through both the exportation of tangible products and the sharing of intangible knowledge. Among the tangible products exported are auto parts, ITC products, discs, tapes, machinery, screws, bolts, nuts, polymers of styrene, plastics, iron and steel products, yarn, fabrics, motorcycles, bicycles, and frozen seafood. In an interview last year, Trade Commissioner of Nigeria Trade Office in Taiwan, Mr. Dipo Adegoke, remarked Nigeria and Taiwan have managed to keep their trade relations intact, even in the absence of diplomatic ties.
Nigeria-Taiwan refrain from establishing official diplomatic relationships due to Nigeria’s acknowledgement of the One-China policy, where Taiwan is considered an integral component of China. Nevertheless, Nigeria and Taiwan have forged some mutual connections encompassing trade, investment, and cultural interchange. Despite the absence of official diplomatic alliances, the two nations have fostered an amicable rapport and collaborative affiliations. He expressed optimism regarding the economic future of both countries when questioned about the potential of their relationship moving forward.
Several investment opportunities offer available for Taiwanese firms.
Moreover, Nigeria offers a host of investment opportunities to Taiwanese firms, spanning agricultural ventures, food processing industries, machinery manufacturing, and automobile production. In terms of food processing expertise, Taiwan stands at the forefront with its cutting-edge technology, making it an excellent source for the exchange of skills and technological advancements that would greatly benefit Nigeria. In a 2022 interview, Andy Yih-Ping Liu, the Taiwanese Ambassador to Nigeria, and representatives of the Taiwan Trade Office in Nigeria, shared insights on bolstering the trade ties between the two nations, addressing the political and commercial dynamics with China, and delving into various aspects.
He mentioned that a prime objective being pursued by the governments of both nations is the renegotiation of the bilateral investment protection agreement, originally endorsed in 1994. Additionally, Nigeria aims to establish a pact with the Taiwanese Import and Export Bank, offering $5 million in trading guarantee loans, ensuring a mutual trade opportunity for Nigerian and Taiwanese traders. He noted that his country is collaborating with NACCIMA, a Nigerian umbrella trading organization, for the purpose of enhancing and renewing the MoU.
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Yih-Ping Liu emphasized that his nation has successfully established affiliations with various chambers of commerce and industry. This strategic collaboration enables Taiwanese trading associations to reap the advantages of connecting with trusted traders from either NACCIMA or chambers of commerce, thereby effectively thwarting trade fraud. When asked about the potential for mutual human resource exchange between the two nations, the Ambassador responded by highlighting Taiwan’s extensive venture in training initiatives targeting Nigerian professionals from diverse fields. Yih-Ping Liu expressed his country’s keen interest in delving further into Nigeria’s framework, particularly concerning its democracy and human rights commission.
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