EU seeks ‘better structured’ economic relationship with Nigeria

The European Union (EU) has expressed interest in a “better-structured economic relationship” with Nigeria to deepen trade and investment between the region and Africa’s fourth-largest economy.

In a statement on Wednesday, Gautier Mignot, head of the EU delegation to Nigeria, said the union wants to exploit Nigeria’s untapped economic potential.

Mignot said the EU intends to establish a better-structured economic relationship and dialogue to resolve issues that hinder increased trade and investment, stressing that no agreement or framework currently exists.

The envoy said the union aims to introduce new initiatives and projects in Nigeria.

He said through the global gateway investment agenda, the economic bloc will focus more on creating jobs and opportunities, especially for young people in Nigeria.

“Building on NG’s great sense of entrepreneurship, in sectors like green economy, digital, agri-food and health: this is actually already an ongoing work,” the statement reads.

“Special attention to the North of the country where there are specific needs but also a great sense of entrepreneurship, as I could witness during my recent trip to the North-east, and we have a package of ongoing and new projects there.

“Science, technology and investment agreement to foster projects and opportunities in higher education and research.

“Further strengthen our engagement in peace and security, responding better to NG needs and expectations.

“Migration partnership responding to both parties’ interests covering all aspects, together with our MS: smuggling and trafficking of human beings, working with diasporas, legal pathways, readmission and reintegration of migrants not admitted to remain in EU or stranded in the way: readmission agreement to pave the way for a more global partnership.”

Mignot said the mission would build closer consultation with Nigeria on global and regional issues, noting that the EU is already a major supporter of the  Economic Community of West African States (ECOWAS).

“On all issues, we want to partner more closely with the NG authorities, at Federal and local levels, listen to their expectations, strategies and needs, but also listen to Civil society and the young (Youth Sounding Board),” the envoy added.

‘EU IS NIGERIA’S LARGEST TRADE, INVESTMENT PARTNER’

Mignot said the EU remains Nigeria’s largest trading and investment partner by a significant margin.

He noted that the region ranked as Nigeria’s top trading partner in 2023, accounting for 28 percent of its total trade.

“The total trade in goods between both parties amounted to €35 billion in 2023, with EU imports growing at an average annual rate of 1.5 percent and EU exports at 0.9 percent between 2019 and 2023,” the envoy said.

“Nigeria benefits from a EUR 10,7 billion trade surplus with the EU.

“When it comes to investment, a key priority of President Tinubu’s Renewed Hope Agenda, Nigeria also has its strongest partner in the EU, as our foreign direct investment stock accounts for about 1/3 of Nigerian FDI, totalling EUR 26.4 billion (2022).”

Mignot added that hundreds of EU companies currently operate in Nigeria, complying with strict regulations while creating jobs, offering training, and transferring technological expertise.