President Muhammadu Buhari has referred to the United States as Nigeria’s primary business partner and one of “our most important diplomatic partners,” highlighting the necessity for coordinated efforts to expand bilateral commerce.
Thursday in New York, the President addressed at a meeting with the Business Council for International Understanding (BCIU) at the Nigeria International Economic Partnership Forum, which was held in conjunction with the 77th United Nations General Assembly.
In 2020, Nigeria exported more than $1.69 billion worth of commodities to the United States, the majority of which were crude oil and other petroleum products, he told the audience.
“Nigeria’s capability is not just limited to the oil and gas industry, but variety of other sectors that hold notable potentials.
“We are the largest economy in Africa and have over 200 million-strong consumer market that is home to a range of attractive opportunities in sectors such as agriculture, healthcare, light manufacturing, infrastructure development and technology.
“The beauty of this forum is that the Ministers responsible for all of these sectors are here today, as are some of Nigeria’s premier business leaders who are already excelling in these spaces,” he said.
The President said that Nigeria is receptive to further partnership with BCIU, reiterating his government’s commitment to maintaining a business climate that is conducive to foreign investors.
“Going into partnerships with trusted local and foreign partners who have well-established networks and understand the dynamics of the country is one way to guarantee success in Nigeria.
“Today’s event provides a platform for businesses under the BCIU umbrella to make connections with credible Nigerian partners. I trust that this event will help build partnerships that will translate into increased trade and investment flows between Nigeria and the United States,” he said.
The President informed the business executives of the current Administration’s economic policy, stating that since 2015, the emphasis has been on economic diversification, and the economy is on a path of sustainable and inclusive growth through an open, rules-based, and market-oriented approach to conducting business.
The President emphasised that his primary purpose for the meeting is to win BCIU support for two of Nigeria’s most ambitious development goals:
“Driving strategic and financial investment into Nigeria’s real-sector transformation, and rightly positioning Nigeria as a major international supply-chain partner to leading global economies like the United States.”
According to the President, the present state of global supply chains is tough, as U.S. shippers are under pressure due to lower inputs from China and the rising backlog of European imports resulting from the Russia-Ukraine situation.
He noted that the globe has not entirely recovered from the economic difficulties created by the COVID-19 pandemic, and that this has taught everyone the necessity of having viable alternatives when conventional supply networks cannot meet our needs.
“The current global challenges are expected to continue into 2023 and beyond, but Nigeria is ready to fill a greater amount of global demand.
“We are leveraging on our skilled labour-force, strategic location, as well as production and manufacturing potential to move forward as a key trading partner to the United States.
“I have always held the strong conviction that there is no crisis without an accompanying opportunity and solution. Increased collaboration with Nigeria and other developing markets is needed to mitigate against both current and potential future supply-chain challenges.”
The President of Nigeria expressed confidence that the current global situation presented an opportunity for real sector investment in Nigeria, noting that since the signing of the African Continental Free Trade Agreement, Nigeria has strengthened its position as a gateway to an integrated continental market of 1.3 billion consumers with a total GDP of $3.4 trillion.
Moreover, he claimed that the government has prioritised the development of Nigeria’s manufacturing sector, and that, given the country’s vast natural resources, a technical cooperation is required to translate these resources into high-value commodities.
“To drive forward our manufacturing and production capacity, we have developed 17 operational Special Economic Zones with four more currently under construction.
“Fourteen of these are general economic zones which support export processing, large-scale manufacturing, warehousing, logistic services, tourism, food processing and packaging as well as technology development; the remaining three are dedicated to oil & gas related activities.
“We have furthermore commenced the development of three automotive Industrial Parks that encourage the local assembly of vehicles for the Pan-African market.”
President Buhari also used the occasion to list fiscal investment incentives formulated to encourage increased private capital inflows into Nigeria.
They include: “Three to five years of tax holidays for enterprises in what we deem pioneer industries; tax-free operations and no restrictions on expatriate quotas in our Free Trade Zones; capital allowances for agriculture, manufacturing and engineering; and a VAT regime of 5 percent; among others.”
The President of the Republic of The Gambia, Adama Barrow was a Special Guest at the event.