Nigeria and the European Union (EU) are strengthening their economic partnership, with the EU emerging as Nigeria’s largest trading partner and biggest foreign investor. This news comes from the 9th Edition of the Nigeria-EU Business Forum held in Abuja, focusing on “Investing in Jobs and Sustainable Future.”
Nigeria’s Top Trading Partner and Investor
The EU Ambassador to Nigeria and ECOWAS, Ms. Samuela Isopi, highlighted the significant trade volume between the two regions. In 2023, EU-Nigeria trade reached nearly €35 billion, representing roughly a third of Nigeria’s foreign trade. This partnership extends beyond trade, with the EU holding the title of Nigeria’s biggest foreign investor, boasting an estimated €26 billion investment stock, equivalent to one-third of Nigeria’s total FDI (Foreign Direct Investment).
Shifting Investment Landscape
Traditionally, EU investments concentrated on Nigeria’s oil and gas sector. However, Ms. Isopi revealed a shift in focus. Today, manufacturing leads the way, attracting nearly 20% of total EU investments in Nigeria. Other prominent sectors include professional services, logistics, and construction, with extractive industries like oil and gas accounting for less than 10%.
EU’s Positive Economic Impact
EU companies not only contribute significantly to Nigeria’s economy through investments, but also generate employment opportunities. Ms. Isopi reported that EU companies created over 130,000 jobs and provided skills development programs for 6,000 Nigerians annually. This translates to a turnover of €4 billion in the last fiscal year.
Looking Ahead: Fostering Growth
The forum aims to encourage concrete investments aligned with Nigeria’s Renewed Hope Agenda. Key areas of focus include economic openness, investment facilitation, agriculture, digitization, and healthcare. Additionally, the EU remains a top development partner, with the European Investment Bank actively contributing to infrastructure projects, renewable energy initiatives, and private sector development.
