Nigeria-UK Trade Hits €35bn With Positive Balance For Nigeria At €10bn

Nigeria’s trade exchange with the United Kingdom has grown to about €35 billion as at last year, accounting for about one-third of Nigeria’s foreign trade.

Also, the country ‘s trade balance with the UK stood at over €10 billion in favour of Nigeria.

In the same vein, the European Union has commended Nigeria for offsetting the $850 million backlog of debt owed foreign airlines.

The positive foreign trade outlook came just as the Dutch Entrepreneurial Development Bank (FMO) and Nigeria’s First City Monument Bank (FCMB) signed a $25 million NASIRA guarantee agreement.

The guarantee will enable FCMB to expand its funding to agricultural, youth, and women-owned SMEs without requiring collateral, targeting a client group typically deemed too risky by banks.

Also, as part of the build up to the economic engagement, the European Union and Eurocham Nigeria (the European Business Chamber) on Tuesday signed a €300,000 grant agreement to support further development of the Chamber.

Speaking at the 9th edition of the Nigeria – EU Business Forum in Abuja on Tuesday. the EU European Union Ambassador to Nigeria and the ECOWAS, Samuela Isopi, said that “European Union is by far Nigeria’s largest trading partner with a total trade of almost €35bn last year, accounting for about one-third of Nigeria’s foreign trade, and a balance – at over 10 billion euros – in favour of Nigeria”

She said that, “The European Union is also Nigeria’s biggest foreign investor with a stock estimated at €26bn, representing one third of Nigeria’s FDI stock”.

While giving further insights into efforts made to boost trade relations with Nigeria, Isopi said that at the end of last year, both countries had a successful Strategic Dialogue in Abuja, co-chaired by the EU Commissioner for International Partnership Jutta Urpilainen, and thr Minister of Budget and Economic Planning Senator Atiku Bagudu, where issues on the way forward were discussed.

She said: ” Together, we are looking at deepening economic ties and promoting additional investments by exploring the potential of a Sustainable Investment Facilitation Agreement.

“More could be done to boost our trade relations. On our side we stand ready to engage, should Nigeria – as the only holdout in West Africa – reconsider its position on the Economic Partnership Agreement with the European Union, an instrument in support of economic diversification and local added-value, in line with Nigeria’s industrial ambitions.

“The EPA would also open up, fully and immediately, access to the EU market, a market of over 400 million consumers”.

According to the EU ambassador, the Business Forum will focus on fostering concrete investments in Nigeria, in line with the Renewed Hope Agenda and the EU-Nigeria partnership.

She listed some of the key issues that featured at the Business forum as economic openness and investment; agriculture – as a way of economic diversification and increased food security; a key topic under the current circumstances.

In addition, the forum discussed ways of leap-frogging digitalisation to a globally integrated and competitive economy and, last but not least, the health sector, with focus on both investment into human development and resilient supply chains.

Isopi also spoke on signing of agreement between the European Union and Eurocham Nigeria (the European Business Chamber) for a €300,000 grant to support further development of the Chamber.

She said in collaboration with our member states and with EUROCHAM Nigeria, the European Chamber of Commerce, the EU carried out the first-ever mapping of EU companies present in Nigeria.

She said the findings were quite extraordinary as over 230 companies, from 18 EU member states, were found to be present in Nigeria with France, Germany and the Netherlands making up 60 percent of the companies captured by the survey.

The EU Envoy said that in the past, much of the investment used to go into the oil and gas sector; but that currently, the largest sector for EU companies operating in Nigeria is manufacturing (which accounts for almost 20 person of total EU investments in Nigeria), followed by professional services, logistics and constructions. 

She explained that extractive industries (oil and gas) represent today less than 10 percent.

“The survey gives a clear indication of how EU-Nigeria economic partnership contributes to Nigeria’s economic growth and diversification (EU companies had a turnover of 4 billion euros in the last fiscal year)”, she said

The Ambassador stated that though the EU was aware of the challenges and of the difficult situation Nigeria is facing, with the effects of high inflation and Naira depreciation, there are also positive signs to it.

She said that one of the key conditions for any foreign investor is the ability to repatriate profits.

She added: “One of the consequences of the Naira depreciation is a welcome increase in portfolio investors and there are as well encouraging signs of a boost to exports, at least in the West African region”

According to her, repatriating profits has been a concern in recent years with the most affected sector being the airline industry.

“A year ago, these funds amounted to $850m, with a big chunk being owed to European airlines. Today more than 98 percent of the arrears have been cleared. This is a major achievement. 

“From a European investor’s perspective, the decision to remove foreign exchange restrictions for the import on 43 items is welcome and long overdue.   And we wish to commend the Central Bank of Nigeria (CBN) and Governor for these efforts.

“Investor confidence takes time to build up, but resolving these issues was clearly a top priority,” she said.

Earlier in his speech at the Forum, Minister of Budget and Economic Planning, Senator Atiku Bagadu, said that Nigeria has the ability to absorb hundreds of millions of dollars of investments and that, “we can add favourable return which is higher than other places in the world”

The minister said that what Nigeria was asking for was a donation or handout but a mutually beneficial investment exchange that would boost her economy.

His words: “We are confident in our abilities, we are confident in our economic prosperity and we are confident that our private sector is able to respect contracts. We want to do better together. EU and Nigeria can help provide a model for partnership that will advance prosperity with a global environment.”

Onyebuchi Ezigbo, Michael Olugbode and Folalumi Alaran

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