A delegation of European Union officials met Saturday in Lagos with members of the European Business Chamber of Nigeria (EuroCham) to discuss opportunities and challenges of doing business in the country.
The roundtable was held ahead of a meeting between EU Commission Vice President Margrethe Vestager and senior Nigerian government officials in Abuja this week.
EuroCham is a business group that brings together leading European investors and business organizations in Nigeria. It was launched at the EU-Nigeria Business Forum in October 2018 by the EU ambassador.
“The meeting again gave us the opportunity to underline the fact that trade and investment are high above our priorities, and are also key priorities in the partnership between the European Union and Nigeria,” said Samuela Isopi, ambassador of the EU in Nigeria.
“The European Union as a bloc is already Nigeria’s largest trading partner and also the European Union is a very important investor in Nigeria. We have European companies that have been here for a long time, that contribute to the creation of employment and the economic development of the country”.
European-owned companies in Nigeria range from the oil sector to the non-oil area, including construction, technology, food, among others.
Ms Isopi said that the EU would continue its dialogue with the Nigerian government on how to strengthen the economic partnership between the two entities.
“Because development has to do with the private sector, with the development of the economy… when I say the private sector, it is not only to attract or help companies from the European Union, but also to create good conditions so that the sector Nigerian private sector can contribute to the development of the country. ,” she added.
The meeting allowed EuroCham members to highlight some of the challenges facing their businesses in the country.
“These challenges are faced by European and Nigerian companies as well as by companies from any other country. So this is part of our dialogue, to see how together we can help improve the business environment and how together we can tackle these challenges,” said Ms. Isopi.
Trade between Nigeria and the EU
John Taylor, EU Delegation to Nigeria and Head of ECOWAS Trade and Economics Section, said that as Nigeria’s largest trading partner, the EU is committed to supporting the Nigerian government in developing its economy.
“When you look at the statistics produced by the Nigerian National Bureau of Statistics, you don’t see that because they are compiled by country,” said Mr. Taylor.
“So we have exports from Nigeria to Spain, Germany, the Netherlands, France, when you add up all those countries that are referred to as the EU, we are actually the biggest trading partner.”
Nigeria’s trade with the EU consists essentially of exports of crude oil to Europe and refined oil products back to the country.
Taylor said that with the start of operations of the Dangote refinery at the end of this year, the volume of trade between Nigeria and the rest of the world, especially the EU, will change dramatically.
That change could see a shift to non-oil trade between the two partners.
“When you look at non-oil trade with Nigeria, you are looking at Nigerian exports of agricultural products and we know that the Central Bank here has played a very strong role in trying to develop certain very specific sectors like rice production in the country,” Taylor said.
“The EU is also a major exporter of agricultural products, so we need to find the right balance between the EU and Nigeria to allow farmers and growers to grow here. An example of where the EU is already very active is the dairy sector.
“I think just a few years ago there was almost no dairy production in Nigeria, and we have a number of European countries that are now implanted in Nigeria. So a year or two ago they only exported to this country and now they are setting up factories to produce dairy products that are actually Nigerian.
“So if you look at social media, you’ll see European companies like Arla, Danone, Friesland Campagna that are setting up factories here to develop the sectors in the country.”
Taylor urged the Nigerian government to improve the country’s infrastructure to enable it to attract foreign investors.
“Certainly if there is a strong will here to improve the conditions for doing business, investors will of course come in, it’s a wonderful market here,” he said.
“If you want to have investments here from abroad, you should also look at your investment environment here. And that is something that European companies are looking at very closely. We have companies here that have been here for decades, but to encourage new investors to come here, I think some of the structural problems in the country also need to be addressed.”
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‘Tough market’
Earlier, Mary Ojulari, President of EuroCham, noted that European companies operate in a “tough market” and the roundtable provides an avenue to come together and discuss the issues they face and collectively advocate for change.
He said the EuroCham platform has engaged some of Europe’s most prominent companies to assess, review and improve their business operations by fostering relevant exchange and dialogue with stakeholders.
“There are countless obstacles for us investors in Nigeria, ranging from the ease of doing business, dealing with regulators, foreign exchange and the list goes on and on,” said Ms. Ojulari, deputy general manager of Weststar Associate. Limited.
“In accordance with the objectives of Eurocham, we seek to actively promote trade, investment and exchanges between European and Nigerian companies and engage central and local government, where necessary, to raise awareness or make recommendations on particular issues of interest or concern. .
“Our main strength to date is advocacy, advocacy with regulators, which has provided a great opportunity for European members to gain insight into policy developments in the country.”