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Nigeria: The beautiful bride (1)

Enterprise Issues With Siaka Momoh

This piece, by Siaka Momoh, was first published in Non-Oil Digest in April 2019. Siaka is publisher of Non-Oil Digest.

 Once upon a time, former British Prime Minister David Cameron delivered a speech at Pan African University’s Business School, Lekki, Lagos (now Pan Atlantic University) as part of his one-day visit to Nigeria. He also held bilateral talks with ex-President Jonathan alongside key government functionaries at the State House, Marina.

 His speech focused on three areas of concern: Delivering aid rightly, growing private enterprise and trade, and long term political reform. Regarding private enterprise and trade, one thing came out clearly – UK was worried about China’s robust investment in Nigeria and Africa, and would want the worrisome situation reversed. David Cameron, that Tuesday, opened up on this issue to a cross section of informed Nigerians, at Pan African University.

Need to catch up with China

Said David Cameron at the event: “Today, Britain accounts for less than four percent of Africa’s exports. That’s almost three times less than China – and one of the reasons I’m here is to make sure we catch up. It’s why I’ve brought a plane full of business leaders. And it’s why we want to do more to extend loan guarantees and trade finance to British companies that are looking to do business in Africa; because we see Africa in a new way, a different way. Yes, a place to invest our aid; but above all a place to trade.”

Nigeria’s strong ties with UK

Nigeria has very strong ties with the UK, what with its being a major colonial out post to this country that was an empire to reckon with.  Nigeria is the UK’s 32nd largest overseas market and 2nd largest African market for goods. UK exports of goods to Nigeria were worth £1,433 million in 2008 (up 42 per cent on 2007) and exports of services were worth £1,279 million in 2008 (up 46 per cent on 2007). The main export opportunities for the UK include oil and gas, agriculture, mining and mineral processing, power, and communications.

But in recent years, we have witnessed a robust entry of Chinese and South African businesses into Nigeria. Chinese trade relations and other business interests in Nigeria, like in some other parts of Africa, have shot up. The Chinese trade in textiles, garments and a long list of general goods. They are in oil and gas and solid mineral businesses. They are also into road and rail construction works. According to World Bank Weekly Report for July 7, 2008, Sino-African trade exploded from $2 billion in 1999 to $55.5 billion in 2006 and $73 billion in 2007, growing faster than Chinese trade with the rest of the world, and making a significant contribution to China’s success.  Nigeria comes in big as that part of Africa that the Chinese are interested in.

UK’s poised to grow private enterprise and trade

 The United Kingdom is thus poised to unleash economic growth through private enterprise and trade in Africa. This, according to David Cameron, “is what has lifted hundreds of thousands out of poverty in Brazil, China and Indonesia and it can do the same here in Africa.

“So it’s right that we give the poorest countries the most open access to European markets. And it’s right to work for a world trade deal that helps countries develop. But more changes are needed – both here and around the world. Change here because at the moment, just twelve per cent of African trade is with other African nations. In Europe, it’s over two-thirds.”

Cameron argued: “Imagine the prize if Africa increased its trade in this way. An African Free Trade Area could increase GDP across the continent by as much as $62 billion a year. That’s nearly $20 billion more than the world gives Sub-Saharan Africa in aid. And we need change in Britain too, because, frankly, we’re just not doing enough to pursue the possibilities of trading with you. Right now, Britain is in danger of missing out on one of the greatest economic opportunities on the planet.

It is therefore very clear why David Cameron, like the rest of the West, wants to fight back.

To be continued next week Thursday.

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