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EU-Nigeria trade hits €35b - THE NATION
by Dele Anofi
Nigeria-European Union (EU) trade reached €35b in 2023, with the EU accounting for about one-third of Nigeria’s foreign trade, resulting in a trade balance of over €10 in favor of Nigeria, it emerged on Tuesday.
This comes as the EU and the European Business Chamber (Eurocham Nigeria) signed a €300,000 grant agreement to support the further development of the Chamber in Nigeria.
The EU is also Nigeria’s largest foreign investor, with an estimated investment stock of €26b, representing one-third of Nigeria’s foreign direct investment (FDI) stock.
Samuela Isopi, the EU Ambassador to Nigeria and the Economic Community of West African States (ECOWAS), in her opening address at the 9th EU-Nigerian Business Forum held in Abuja on Tuesday, Isopi emphasized that Nigeria remains a key business partner with the EU.
She noted that the business-friendly government of President Bola Tinubu had impressed the Union, prompting the forum to be moved from Lagos to the nation’s capital for the first time since 2012.
She said: “This is indeed the 9th edition, since the first one, in 2012, but it is the first one that takes place outside of Lagos and the first one organized during and in collaboration with President Tinubu’s Administration, which has put trade, sustainable investment, and partnerships at the core of its Renewed Hope Agenda.
“By moving the EU-Nigeria Business Forum to ABUJA, we wanted to emphasize the relevance of this Forum as a platform for dialogue and engagement between the public and the private sector and highlight the importance of the role of the Government in support of business, the private sector, and private investments, as a driver for truly inclusive and sustainable economic development.
“And it is not by coincidence that this FORUM is happening almost at the same time as the one-year anniversary of the current Administration.
“This Forum also highlights the importance of international partnership in promoting sustainable economic development and I am glad to welcome Ms. Myriam Ferran, Deputy Director General International Partnerships of the European Commission, for traveling to Abuja to attend today’s event.
“Trade and sustainable investment are not only at the core of the Renewed Hope Agenda, they are also at the center of the partnership between the European Union, its Member States, and Nigeria. And this is not by chance.”
To underscore Nigeria’s place in the EU business landscape, she disclosed that the Union is Nigeria’s largest trading partner with a total trade of almost €35bn in 2023.
The EU also accounted for about one-third of Nigeria’s foreign trade, with a balance of over €10b in favor of Nigeria.
The EU is also Nigeria’s biggest foreign investor with a stock estimated at €26bn, representing one-third of Nigeria’s FDI stock, she added, saying, “In collaboration with our Member States and with EUROCHAM Nigeria, the European Chamber of Commerce, we have carried out the first-ever mapping of EU companies present in Nigeria: and the findings are quite extraordinary.
“Over 230 companies, from 18 EU Member States are present in Nigeria with France, Germany, and the Netherlands making up 60% of the companies captured by the survey.”
According to her, in the past, much of EU investment used to go into the oil and gas sector but with time things have changed as the largest sector for EU companies operating in Nigeria is manufacturing which accounts for almost 20% of total EU investments in Nigeria, followed by professional services, logistics, and constructions. Extractive industries (oil and gas) represent today less than 10%, she said.
“The survey gives a clear indication of how the EU-Nigeria economic partnership contributes to Nigeria’s economic growth and diversification with EU companies’ turnover of €4b in 2023; to employment, through the creation of over 130,000 jobs, and skill development with 6,000 Nigerians on average trained annually.
“And in a testament to Nigeria’s economic potential against all challenges, 4 out of 10 European companies arrived in the last decade.”
Meanwhile, while signing the €300,000 grant agreement, Myriam Ferran, Deputy Director General of the Directorate of International Partnerships (INTPA) at the European Commission, and Frederik Klinke, Vice-President of Eurocham Nigeria, noted that the financial contribution underscores the EU’s commitment to fostering strong economic and commercial ties with Nigeria.
The grant stemmed from the confidence that the collaboration between Eurocham Nigeria and the EU Delegation would yield significant benefits, fostering a mutually advantageous relationship and contributing to the economic prosperity of both regions.
The agreement signed on Tuesday in Abuja during the EU – Nigerian Business Forum, aims to enhance Eurocham’s capacity to serve its members better, promote European business interests in Nigeria, and contribute to the overall mutual economic growth and development.
According to Ferran, the importance of the partnership underscores the EU’s commitment to supporting initiatives that drive economic growth and strengthen the ties between the EU and Nigeria in line with the Global Gateway Strategy.
“This grant to Eurocham Nigeria is a testimony to the EU’s dedication to fostering a vibrant business environment and facilitating meaningful economic exchanges in Nigeria,” she said.
The Vice Presidents of Eurocham Nigeria, Yomi Onifade, the Chief Executive Officer (CEO) of Allianz Nigeria, and Frederik Klinke, CEO of APM Terminals, who were both present at the signing of the grant agreement, expressed gratitude for the continued support from the EU Delegation.
They noted that the grant marked a pivotal moment in the history of Eurocham Nigeria, as it will enable the Chamber to expand its activities, provide more robust support to its members, and play a more active role in the economic development of Nigeria.
According to them, the funds will be allocated to various developmental projects, including capacity-building programs, member services enhancement, and initiatives aimed at improving the business climate in Nigeria.
