Nigeria, China Strengthen Trade, Investment Ties

Federal Republic of Nigeria President Goodluck Jonathan and the First Lady arrive in the People's Republic of China on July 10, 2013., a photo by Pan-African News Wire File Photos on Flickr.

Nigeria, China Strengthen Trade, Investment Ties

11 Jul 2013
Kunle Aderinokun
Nigeria ThisDay

Nigeria has commenced strategic moves to improve trade and investment ties with China as well as to re-appraise the level and quality of trade between both countries.

A high-level business and investment forum to leverage the strength of both countries for win-win trade and investment positions had been declared open by President Goodluck Jonathan in Beijing as part of his state visit.

The forum, which was expected to attract top Chinese and Nigerian companies and investors, was organised by the Ministry of Industry, Trade and Investment.

Nigeria and China had maintained a long standing trade relationship, which had resulted in significant increase in the volume of trade between both countries. In 2012, the bilateral trade volume between Nigeria and China stood at N276 billion.

Nigeria’s export to China includes liquefied gas, bituminous minerals, sesame seeds rubber, while imports from China include machinery, chemical products and unglazed ceramics, among others.

Speaking with journalists, the Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, said Nigeria’s current position as the number one investment destination in Africa had put the country in a good position to attract more local and international investments across all sectors of the economy, especially in the areas where the country had comparative and competitive advantage.

He added: “If you look at the latest report from the United Nations Conference on Trade and Development (UNTAD), which was released two weeks ago, Nigeria was ranked Africa’s number one destination for Foreign Direct Investment (FDI) in Africa for the second time in two years.

"According to the UNCTAD’s report, Nigeria’s FDI inflows stood at $7.03billion, while South Africa recorded $4.572billion; Ghana, $3.295billion; Egypt, $2.798billion and Angola, $6.898 billion. This shows that despite the global decline in FDI, we have remained at the top of the ladder for two consecutive years as the preferred destination for FDI inflows into Africa."

Experts have said the Nigeria-China business forum could not have come at a better time than now as it would provide a veritable platform for the government and organised private sectors of both countries to strengthen their economic partnership, especially in the critical sectors of the economy.


FBN, Chinese Bank Seal $100m SME Facility Deal

11 Jul 2013
Kunle Aderinokun

First Bank of Nigeria Limited has signed a $100 million facility agreement with the China Development Bank (CDB), a leading bank in the Peoples’ Republic of China. The facility was part of the bank's effort to boost lending to small and medium scale enterprises in the country to stimulate the economy.

The Group Managing Director/Chief Executive Officer, First Bank Nigeria, Mr. Bisi Onasanya, is a member of the federal government’s delegation to China. The delegation also includes four state governors and 10 ministers.

According to the document signed by the management of the two banks, both financial institutions would work together to further strengthen the business cooperation between both parties within the framework of each party’s respective articles and memoranda of association and applicable laws and regulations in Nigeria and China.

Specifically, the memorandum of understanding provides for a comprehensive cooperation between First Bank and China Development Bank for on-lending of the facility to small and medium enterprises in Nigeria, while also touching areas such as credit lines, trade, syndication and project, consultancy services, sharing of business experience and foreign exchange transactions.

Commenting on the MoU, Onasanya said the partnership with CDB was in line with First Bank's strategic focus on financial inclusion as it would address the challenges of credit delivery to the unbanked market’s segment in Nigeria through mobilised funds that would avail credit facilities to registered SME operators at concessionary rate.

He said in addition to disbursing funds, the bank would support SMEs through business advisory services, capacity building and development of relevant IT infrastructure.