Belgium’s role as a key trading partner in Nigeria’s economic diversification
This year’s Nigeria-Belgium-Luxembourg Business Forum in Brussels underscores the growing significance of Belgium as a key trade partner for Nigeria, particularly within the European Union. As the biggest exporter to Nigeria within the EU, Belgium plays a critical role in Nigeria’s economic diversification efforts.
The trade relationship between the two countries is still dominated by mineral products, but this presents numerous opportunities for expansion. “Currently, Nigeria exports crude oil to the European Union, especially Belgium, where it is refined and then re-imported into Nigeria at a higher price. In the short term, there is potential for Nigeria to begin refining its crude oil domestically, which would generate more revenue and reduce the costs associated with re-importing refined products,” says Belgium’s ambassador to Nigeria Pieter Leenknegt.
In the long run, these trade relations offer the opportunity to expand other areas of the economy, something that is already illustrated by current Belgian investments in Nigeria. “Unlike current trade relations, the investments are very diverse and future-proof. Companies are operating in the construction, dredging, fisheries, port and maritime services and transport sectors, for example, but there are also investors looking into local production of mRNA vaccines and the generalised use of dialysis machines, and SMEs slated to do environmental clean-ups.”
The Nigeria-Belgium-Luxembourg Business Forum serves as a crucial platform where business leaders and government officials from Nigeria, Belgium, and Luxembourg come together to explore and solidify these economic ties. The forum allows Nigeria to showcase its potential beyond the oil industry and attract the necessary foreign investment to stimulate further growth in other sectors of its economy.
“Both countries increasingly see a win-win as achievable. The Forum therefore aims to align Nigeria’s position as a gateway to Sub-Saharan Africa with Belgium’s access to the European market. This is reflected in the diverse list of the participants: Nigerian businesses are clearly focusing on the expansion of sectors like agriculture, construction, and oil, while Belgium and Luxembourg bring tech, manufacturing, finance, and infrastructure to the table”, said Collins Nweke, consultant at the Nigeria-Belgium-Luxembourg Business Forum.
The 2nd edition of the Nigeria-Belgium-Luxembourg Business Forum, organised by the Belgian-Luxembourg Chamber of Commerce for Africa, the Caribbean, and the Pacific (CBL-ACP), will take place from 18 to 20 September in Brussels. More info can be found on the event’s website.
A bus driver watches from his vehicle as protesters march through the streets of Ikeja, Lagos © Fawaz Oyedeji / AFP
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