The continent’s second largest economy, after South Africa, is a rapidly expanding market in the energy, infrastructure, telecommunications and financial services sectors.
« nigeria is open for business, join us! » On the stage of the Medef conference this Friday, nigeria’s Minister of Economy and Finance, Wale Edun, urges the French bosses gathered before him to invest in « new dynamic » of his country. An appeal that comes the day after president Bola Tinubu’s visit to Paris,his first in 24 years. The economic forum, which brings together 180 entrepreneurs from the two countries, aims to be a space for exchanges and even more so if there are affinities.
« I would like to meet managers to co-develop my business in Africa »testifies Paul Bertholomieu, co-founder of MyJouleBox.the French start-up, created in 2016 with Beninese Leonide Michael Sinsin, sells solar systems mainly in West Africa. « We have already collaborated with danone in Ivory Coast. We were providing solutions to farmers and I would like to do the same thing in Nigeria. » The potential is enormous in this country of 280 million inhabitants,a population that could reach 410 million in 2050.
an essential partner
Nigeria and France will strengthen their economic cooperation, their respective presidents promised on Thursday. Bola Tinubu’s tenure was marked by three declarations of intent or partnership, and the proclamation of the imminent establishment of a fifth Nigerian bank in France, the United Bank of Africa. For Paris, this rapprochement with a major English-speaking country like Nigeria illustrates its desire to address the entire African continent, beyond its former colonial zone. In recent years, the influence of the tricolor in Central and West Africa has been the subject of strong disputes by local populations and governments. With French investments exceeding $10 billion in 2023, Nigeria is already an essential partner. « However, we have not yet exploited the full potential »underlined Jumoke Oduwole, Nigerian Minister of Industry and Trade
In 2023, bilateral trade amounted to 4.5 billion euros and more than 100 French companies employing 10,000 people are established there. Nigeria, the continent’s second largest economy after South Africa, is a rapidly expanding market in the energy, infrastructure, telecommunications and financial services sectors, despite a serious economic and social crisis.
The objective of the forum is also to reassure owners in this very delicate period. President Bola Tinubu’s reforms, which mainly attacked energy subsidies, led to high inflation. A shock therapy that fueled social anger, causing large-scale demonstrations. « This is a crucial period, admits the President of the Franco-Nigerian Business Council, Aigboje Aig-Imukhuede, interviewed. these economic reforms were necesary to avoid even greater damage to the economy. We are confident : inflation could be reduced to 12-15 % within two years (against the current 34%, ed) », hope. This is a great time to invest as investment returns will be magnified as inflation decreases. »
Critically important technological hub
Africa’s leading producer of hydrocarbons,Nigeria is also turning to renewable energy. TotalEnergies recently invested six billion dollars in gas and green energy projects.France can also help Nigeria strengthen its agricultural value chains, as Minister jumoke Oduwole has highlighted.
During a round table, Rungis market director Thierry Febvay proposed exporting his model to Nigeria. “ In a country like this with a growing population, the challenge is to ensure everyone has access to fresh, affordable food. This requires solid infrastructure so that they can be transported quickly and safely, from production areas to urban areas.This is exactly what we do at Rungis. » The iconic, city-sized market supplies more than 18 million consumers every day.
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Nigeria is also a major technology hub. Lagos, the economic capital nicknamed the “African Silicon Valley” it is indeed home to startups like Flutterwave (fintech) or Andela (human resources), which have attracted massive international investments. The country has several unicorns, such as Interswitch and Opay. « It is indeed a country of innovation.” says Stéphane Gaudechon, head of Medef’s Africa department and vice-president of the auditing firm Bureau Veritas. Orange also tested its mobile banking offering, now a pillar of its business on the continent.
What are the key sectors driving Nigeria’s economic growth as discussed in the interview with Dr. Amara Okeke?
Interview between time.news Editor and Nigerian Economic Expert
Time.news editor (TNE): Welcome to Time.news,and thank you for joining us today. We have with us Dr. amara Okeke, an expert in African economies and specifically the Nigerian market. It’s exciting to dive into Nigeria’s evolving landscape. dr. Okeke, could you start by providing us a snapshot of Nigeria’s current economic situation?
Dr. Amara Okeke (DAO): Absolutely, thank you for having me. Nigeria, the second-largest economy in Africa after South Africa, is currently experiencing rapid growth, particularly in sectors like energy, infrastructure, telecommunications, and financial services. there’s a notable push from the government to attract foreign investment, especially in light of the recent moves by President Bola Tinubu’s management to enhance partnerships with countries like France.
TNE: speaking of engagement,I noted the recent Medef conference where Nigeria’s Minister of Economy and Finance,Wale Edun,emphasized an open invitation for business. What does this signify for foreign investors?
DAO: This is a clear signal that Nigeria is actively seeking to modernize and integrate deeper into the global economy. By urging entities like the French business community to invest, it indicates that Nigeria’s leadership understands the importance of foreign direct investment.Notably,the Minister’s appeal comes at a strategic time,following President Tinubu’s historic visit to Paris,signaling the intent to strengthen bilateral relations.
TNE: That’s engaging! I understand there were 180 entrepreneurs from both countries at that forum. What kind of partnerships are likely to emerge from this collaboration?
DAO: The potential for partnerships is immense. For instance, companies like MyJouleBox, which provide solar solutions, signify how international firms can collaborate with local businesses to create impactful solutions. With Nigeria projected to increase its population to 410 million by 2050, there’s an urgent need for infrastructure and energy solutions, providing a fertile ground for various sectors, including agriculture and renewable energy.
TNE: You mentioned Nigeria’s growing population. How does this demographic trend influence its market dynamics?
DAO: The rapidly growing population presents both opportunities and challenges. On one hand, a larger population means a bigger market for goods and services. On the other hand, it raises questions about resource management, sustainable development, and job creation. Businesses looking to enter the Nigerian market must focus on innovative solutions to address these challenges, particularly in sectors that cater to young and emerging consumers.
TNE: We also saw an announcement about the establishment of a fifth Nigerian bank in France. How meaningful is this for nigerian expats and businesses?
DAO: It’s very significant. The establishment of a Nigerian bank in France not only facilitates smoother financial transactions for the diaspora but also strengthens economic ties between the nations. This encourages investment flows back to Nigeria, helping to build capital for local businesses and encouraging the diaspora to engage with their homeland economically.
TNE: As we wrap up, what advice would you give to international businesses considering investments in Nigeria right now?
DAO: They should thoroughly research the local market dynamics and potential partnerships. Collaborating with local firms can provide valuable insights and mitigate risks. Understanding regulatory frameworks and engaging with governmental initiatives can also be crucial. Nigeria is ripe for investment, but success requires strategic planning and adaptability to the evolving landscape.
TNE: Thank you,Dr. Okeke, for this insightful conversation! It’s clear that Nigeria’s market holds vast potential for international collaboration and investment.
DAO: Thank you for having me! I look forward to seeing how these dynamic partnerships unfold in the near future.