By Jeph Ajobaju, Chief Copy Editor
Nine firms from Russia have just pooled $500 million to invest in the manufacturing second in Nigeria amid a surge in interest in Africa’s largest market from the Far East dating back at least eight years.
Nigerians in Diaspora Organisation (NIDO) Chairman, Sampson Uwem-Edimo, disclosed this in Lagos ahead of the Russia-Nigeria Business Conference in Moscow on July 8.
“No investment happens without trade; the trade volume between Nigeria and Russia today is around half a billion dollars; sometimes, it gets to a billion dollars.
“It is a very small amount for this kind of business, and for Russia and Nigeria that currently have more than three trillion dollars GDP market,” he said, per reporting by Nairametrics.
“What we want to do is to see how we can improve the volume of trade between the two countries within the next two years. We do not just want trade, but we want it to lead to investment in terms of manufacturing.
“So, we are not only looking at these nine companies but using them as a test run to see the response from the Nigerian side.
“Ultimately, we hope that within the next three years, we can get between 30 and 40 Russian companies making some sort of manufacturing in Nigeria.”
Uwem-Edimo enthused that the conference will deepen ties between the two countries and enable both economies to understand their markets.
Moscow Chamber of Commerce and Industry Vice President, Suren Vardanyan, added that the goal is to triple the trade volume within the next two years and bring direct partnership in manufacturing.
“The Russian companies can collaborate with new or existing Nigerian companies for expansion or creation of production plants,” he said.
Japan is Nigeria’s fifth largest foreign investor
In October 2020, the Nigerian embassy in Tokyo announced that Japan is the fifth largest foreign investor in Nigeria and both countries would improve trade and economic relations.
Nigeria’s Charge de’ Affairs, Tope Elias-Fatile, said the number of Japanese companies in Nigeria had increased by 11, from 32 in 2017 to 43 in 2020.
Citing data from the Nigerian Investment Promotion Commission (NIPC), the embassy said Japan “is the fifth foreign investor in Nigeria; also among the top 10 investors in services in Nigeria; among the top 10 investors in solid minerals, fifth investor in oil refining and fifth investor in real estate.”
Also, Japan “is among Nigeria’s top 20 import partners and Nigeria’s top 20 export partners,” the embassy added.
14 South Korean firms invest in Nigeria
South Korean Ambassador to Nigeria, Lee In-Tae, announced in Abuja in November 2019 that 14 firms from his country were interest in investing in Nigeria, encouraged by trade volume between the two countries which had risen to $2 billion in 2018.
In-Tae expressed faith in Nigeria’s economy and reaffirmed the commitment of South Korea to build infrastructure in Nigeria, according to Daily Trust.
“Our trade volume in 2018 was two billion US dollars. This is a huge figure, considering that Nigeria’s GDP per capita in 2018 was about 2,050 US dollars. In other words, our trade volume was equal to GDP of nearly one million Nigerians,” he said.
“I know this is an impressive figure, but we can be more ambitious. As Korean Ambassador, I would like to see this number grow much bigger.”
Malaysian firm invests $100m in Nigeria’s ICT
Datasonic Group Berhard, a Malaysian ICT firm, announced in September 2019 plans to invest $100 million to improve tech services in Nigeria, per Nairametrics.
Datasone Chief Executive Director, Chew Ben, made the disclosure after a meeting in Abuja with Industry, Trade and Investment Miniter, Niyi Adebayo.
The project, to be done in collaboration with the Chrome Group of Nigeria, covers
· Production of secured passport
· Chip-based driver’s licence
· Integrated security
· Surveillance systems
· Auto-gates with facial recognition systems
Samsung invests $500m in Nigeria in six years
Samsung Heavy Industries (SHI) Managing Director, Jejin Jeon, also met with Adebayo the same day, after which he announced that his firm would locate a vessel fabrication hub in Nigeria where it has invested about $500 million since 2013.
Nairametrics reported Adebayo as saying: “It is also exciting that you are coming now at the beginning when we are trying to settle down in office so that you can be part of our plans.
“Our mandate is to give support to whoever wants to come and provide these job opportunities as private investors.
“I can assure you that as you progress with your project, we have people in the ministry who will listen and see your areas of needs and how to work with you. We will ensure that we create an enabling environment for your businesses to thrive.”