EU delegation and executives brainstorm Nigeria’s business climate

Saturday saw a meeting between members of the European Union delegation and officials from the European Union. European Business Chamber Nigeria (EuroCham)To discuss the challenges and opportunities of doing business in the country.

The roundtable discussion took place ahead of a meeting between Margrethe Vestager (Vice President of the EU Commission) and top Nigerian officials in Abuja this Week.

EuroCham is a business association that unites the major European investors and corporate organizations in Nigeria. The EU ambassador launched it at the EU-Nigeria Business Forum, October 2018.

“The meeting gave us the opportunity again to underline the fact that trade and investment are very much on top of our priorities, and they are also key priorities in the partnership between the European Union and Nigeria,” said Samuela Isopi, the EU Ambassador 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 creating jobs and to the economic development of the country.”

Nigerian-owned European businesses range from the oil industry to the non-oil sector, including construction, technology, and food.

Ms. Isopi stated that the EU would continue to dialogue with the Nigerian government about how to strengthen the economic partnership between the two countries.

“Because development is about the private sector, about developing the economy… when I say private sector it’s not only to attract or help European Union companies but also create good conditions for the Nigerian private sector to be able to contribute to the development of the country,” she added.

EuroCham members were able to highlight some of their challenges in the country at the meeting.

“These challenges are faced by both European and Nigerian companies and the companies of 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 actually deal with these challenges,” Ms Isopi said.

Nigeria-EU trade

John Taylor, EU Delegation to Nigeria and ECOWAS’ Head of Trade and Economics Section, said 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 National Bureau of Statistics in Nigeria you don’t see that because they are collected by country,” said Mr Taylor.

“So we have exports from Nigeria to Spain, Germany, Netherlands, France, when you add up all those countries referred to as the EU we are actually the largest trading partner.”

Nigeria’s trade with the EU consists essentially of crude oil exports to Europe and refined oil products back to the country.

Mr Taylor stated that with the Dangote Refinery opening later this year, the trade volume of Nigeria and the rest, especially the EU will change dramatically.

This could lead to non-oil trade being opened between the two countries.

“When you look at non-oil trade with Nigeria, you’re looking at exports from Nigeria 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,” Mr Taylor said.

“The EU is also a major exporter of agricultural products, so we need to find the right balance between EU and Nigeria to enable farmers and producers here to grow. Dairy sector is one example of an area in which the EU is already very active.

“I think only a few years ago there was almost no production of dairy goods in Nigeria, and we have several European countries who are now implanted in Nigeria. They were exporting to Nigeria only a year ago, but now they are creating factories to produce milk products that are Nigerian.

“So, if you look on social media you will see European companies like Arla, Danone, Friesland Campagna who are setting up factories here to actually develop the sectors in the country.”

Taylor urged the Nigerian government improve its infrastructure to attract foreign investors.

“Certainly, if there is a strong will here to improve the conditions for doing business, the investors of course will come in, it’s a wonderful market here,” he said.

“If you want to have investments here from abroad, you also have to look at your investment environment here. European companies are closely monitoring this issue. We have companies here that have been here for decades but to encourage new investors to come here I think you also have to address some of the structural problems in the country.”

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‘Difficult market’

Earlier, Mary Ojulari, EuroCham President, noted that European businesses operate in a “difficult market” and the roundtable provides an avenue to come together and discuss the issues they are facing and collectively advocate for change.

She said that EuroCham has helped some of the most important European companies to review and improve their business operations. This has been done by encouraging dialogue and exchange with stakeholders.

“There are countless hurdles for we investors in Nigeria ranging from ease of doing business, dealing with regulators, foreign exchange and the list goes on and on,” said Ms Ojulari, deputy managing director at Weststar Associate Limited.

“In line with the objectives of Eurocham, we seek to actively promote trade, investments, and exchanges between European and Nigerian business and to engage central and local government, when necessary, to raise awareness or formulate recommendations on particular issues of interest or concern.

“Our major strength to date is advocacy, advocacy with regulators which has provided a rich opportunity for European members to get insight into policy Development in the country.”