logo
Nigeria: Minister urges stronger private sector role in boosting intra-African trade

Nigeria: Minister urges stronger private sector role in boosting intra-African trade

Zawya05-06-2025
Nigeria's Minister of Foreign Affairs, Ambassador Yusuf M. Tuggar, has made a clarion call for the private sector to play a central role in unlocking Africa's economic potential through intra-African trade. Speaking at the Private Sector Roundtable preceding the West Africa Economic Summit (WAES), held at the Metropolitan Club, Victoria Island, Lagos, Tuggar highlighted the urgent need for deeper economic integration across the continent.
Addressing an audience of business leaders, diplomats, and policymakers, Tuggar emphasised that Africa stands at a critical juncture — one where business is no longer a peripheral concern but a strategic pillar of regional policy and diplomacy.
'This is the period in which the voice of business is not merely recognised at the margins, but is systematically institutionalised within the core processes of policy formulation and regional economic diplomacy.
'It reflects a deeper entanglement of corporate interests and statecraft, wherein the private sector emerges not as a peripheral stakeholder but as a central architect of economic governance frameworks,' Tuggar stated.
While outlining the opportunities, the Minister also presented a stark picture of the current reality. Citing recent data, he revealed that intra-African trade accounts for only 15 percent of total trade on the continent, with the figure dropping to between 12 percent and 13 percent in West Africa. In contrast, intra-regional trade in Asia hovers around 60 percent, and Europe nears 70 percent, highlighting a significant gap.
Tuggar pointed out that the constraints to West Africa's economic integration are not a matter of potential, but rather of practical shortcomings — infrastructure gaps, weak coordination, and a lack of sustained political commitment.
'The challenge lies not in envisioning a prosperous, interconnected region, but in establishing the institutional mechanisms, logistical frameworks, and governance consensus required to actualise that vision,' he said.
Nevertheless, he acknowledged progress in recent years, citing efforts such as the ECOWAS Trade Liberalisation Scheme, the Abidjan-Lagos and Abidjan-Dakar transport corridors, SIGMAT, the West African Power Pool, and the planned African-Atlantic Gas Pipeline.
'These are not just abstract ideas — they are West-African-led initiatives that will prove advantageous to businesses across the sub-region in the near future,' he affirmed.
Tuggar also expressed concern over rising global protectionism and the reordering of global tariff systems, noting that such developments make regional alignment even more essential.
'In a world witnessing protectionist tendencies from global market leaders, it is only right that neighbours and regional blocs align for the common good of their people.
'The West African response must be clear and deliberate, not reactionary and disjointed. That is why WAES is a timely and strategic platform,' he said.
WAES, scheduled for June 20–21, 2025, in Abuja, is a flagship initiative championed by Nigeria's President and supported by other West African leaders. According to Tuggar, the Summit aims to shift the region from dependency to productivity, and from fragmented markets to integrated value chains.
'The idea is to use our size to generate efficient productivity in order to outcompete others in the global market,' he explained. 'A broader West African market will drive down costs and enable our businesses to scale up and compete internationally.'
WAES is expected to bring together Heads of State, Ministers, investors, and key stakeholders from across West Africa, along with private sector leaders. The Minister underscored the importance of this inclusion, stating that business voices must directly influence policy decisions.
'When we succeed in integration, when we improve on policy predictability, secure property rights, and the effectiveness of contracts — investors will come,' Tuggar said. 'This is the largest market on the continent, and it must be leveraged.'
He emphasized the need for candid conversations between the private sector and policymakers during WAES. 'We're bringing along the decision makers to hear directly from you — to understand the challenges, identify the low-hanging fruits, and even resolve some issues on the spot,' he said.
Tuggar urged participants not to underestimate the impact they could have. 'Sometimes it just takes one phone call. We are serious about removing barriers to business so that commerce can thrive,' he said. 'It's not just about size, it's about scale — the kind of scale West Africa provides.'
He commended Nigerian companies already operating across the sub-region — in banking, cement, fertilizer, fintech, and startups — as evidence that cross-border business is both viable and beneficial.
He concluded by reinforcing the collective nature of the challenge: 'Let's not forget — it's not just Nigerian policymakers involved. Policymakers from other countries are also on board. Heads of State will be there. So let's work together to resolve the problems and build an integrated, competitive West African economy.'
As anticipation builds ahead of the June 20–21 Summit in Abuja, Tuggar's message was clear: the future of Africa's economic strength lies in regional collaboration, and the private sector must lead the charge.
Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (Syndigate.info).
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Nigeria to Showcase Executive Order Reforms, Investment Opportunities at African Energy Week (AEW) 2025
Nigeria to Showcase Executive Order Reforms, Investment Opportunities at African Energy Week (AEW) 2025

Zawya

time7 hours ago

  • Zawya

Nigeria to Showcase Executive Order Reforms, Investment Opportunities at African Energy Week (AEW) 2025

Nigeria is undertaking sweeping reforms across its oil and gas industry, driven by a landmark Executive Order signed by President Bola Ahmed Tinubu aimed at catalyzing investment and eliminating regulatory inefficiencies. At the 'Invest in Nigeria' Roundtable during African Energy Week (AEW) 2025: Invest in African Energies – sponsored by NCDMB and taking place in Cape Town on September 29-October 3 – senior policymakers and industry leaders will unpack the scope of these reforms, explore how they are reshaping the investment landscape, and present new opportunities across upstream, midstream and downstream value chains. Set to speak are Olu Verheijen, Special Advisor to the President of Nigeria on Energy; Arthur Ename, Vice President of Business Development, Africa, at NOV; Nosa Omorodion, Country Director at SLB Nigeria; Alex Irune, Executive Director of Oando and Managing Director of Oando Energy Resources; a senior representative from ExxonMobil; and Philip Mshelbila, Managing Director and CEO of Nigeria LNG (NLNG). The roundtable will offer high-level insight into the regulatory reset now underway and what it means for investors looking to expand or enter the Nigerian market. The Executive Order, signed in April 2025, targets cost efficiency and fiscal competitiveness in upstream operations and introduces performance-based tax credits for oil and gas companies that deliver verifiable reductions in project costs. Under the framework, operators that meet annual cost-reduction benchmarks set by the Nigerian Upstream Petroleum Regulatory Commission are eligible to retain 50% of the incremental government revenue generated by their efficiency gains, with total credits capped at 20% of their annual tax liability. This move directly addresses long-standing concerns over high operating costs in Nigeria's upstream sector, which have historically deterred investment and delayed project execution. By linking tax relief to measurable cost savings, the Order is expected to unlock stalled developments, attract new capital and create a more transparent, performance-driven investment climate. At the AEW 2025 roundtable, speakers will examine how this reform is already reshaping Nigeria's energy landscape – enabling more competitive bidding for contracts, accelerating international oil company divestments and positioning indigenous players to scale up their operations within a more commercially attractive and operationally efficient environment. Nigeria is also doubling down on natural gas as the cornerstone of its long-term energy strategy. With over 200 trillion cubic feet of proven reserves, the country is accelerating infrastructure development to support both domestic utilization and regional exports. A flagship project, the NLNG Train 7 expansion, is nearing completion and set to boost production capacity by 35%, underscoring the critical role of LNG in Nigeria's economic growth and energy transition plans. At the same time, upstream and midstream gas investments are being enabled through policy instruments that promote modular processing, flexible pricing frameworks and improved market access for domestic suppliers. The private sector is poised to play a central role in this next phase. Companies like SLB and NOV are aligning their strategies with the government's push for localization, efficiency and innovation, while firms such as Oando are expanding their portfolios to reflect new realities in the post-Petroleum Industry Act landscape. With enhanced policy stability and a deliberate focus on sector transformation, Nigeria is reasserting its status as one of Africa's most strategic hydrocarbon hubs. Distributed by APO Group on behalf of African Energy Chamber.

Afreximbank Shareholders Approve Key Resolutions and Reaffirm Support for Preferred Creditor Status
Afreximbank Shareholders Approve Key Resolutions and Reaffirm Support for Preferred Creditor Status

Zawya

time8 hours ago

  • Zawya

Afreximbank Shareholders Approve Key Resolutions and Reaffirm Support for Preferred Creditor Status

At the 32nd Annual General Meeting of Shareholders of the African Export-Import Bank (Afreximbank) ( held as part of the Bank's 2025 Annual Meetings in Abuja, Nigeria, from 25 to 28 June 2025, shareholders approved a series of key resolutions aimed at strengthening the Bank's strategic direction, financial resilience, and governance. Among the most significant outcomes was the appointment of Dr. George Elombi as the fourth President and Chairman of the Board of Directors, succeeding Professor Benedict Oramah, who will step down later this year after nearly a decade of transformative leadership. Shareholders also approved the expansion of the Bank's Concessional Finance Window, increasing its capital allocation from USD 1 billion to USD 5 billion, and raising the direct shareholder contribution from USD 200 million to USD 700 million. This substantial expansion reflects the growing demand for accessible development finance across Africa and the Caribbean, and strengthens Afreximbank's capacity to support inclusive and sustainable economic growth. In addition, shareholders reaffirmed the commitment of the Bank's Member States to Afreximbank's Preferred Creditor Status (PCS), as codified in the Bank's Establishment Agreement, to which all Member States are signatories. This reaffirmation underscores continued support for the Afreximbank's role as a trusted African Multilateral Financial Institution. In what marked his final Shareholders' Meeting, Professor Oramah welcomed the outcomes and expressed appreciation for the vision and leadership shown: 'It has been a great honour to serve as President and Chairman of the Board of Directors of Afreximbank for the past decade. I commend our shareholders for the bold and strategic decisions taken, particularly the unwavering reaffirmation of their commitment to respect their obligations under the Afreximbank Establishment Agreement, through which the Bank enjoys Preferred Creditor Status across its member states. We also welcome their decision to increase the size of the Africa Trade Transformation Fund (ATTF), the Concessional Finance initiative launched at the 30th Annual Meetings of the Bank, from USD 1 billion to USD 5 billion. These decisions would collectively shape the future of this great institution and advance Africa's prosperity. 'I am confident that the Bank is well placed to continue making a profound impact under the capable leadership of my able successor, Dr. George Elombi, and I extend my very best wishes to him.' The shareholders also elected Mr. Wale Edun, Nigeria's Minister of Finance and Coordinating Minister of the Economy as Chairman of the General Meeting for the period 2025/2026 and passed other statutory resolutions including adoption of the Bank's audited financial statements for the year ended 31 December 2024 and appointment of auditors. The shareholders in addition confirmed the re-election of Dr. Denny Hamachila Kalyalya (Zambia), Dr. John Panonesta Mangudya (Zimbabwe) and Mr. Victor Jérôme Nembelessini-Silué (Côte d'Ivoire) to the Bank's Board of Directors. Independent Directors Mr. Anil Dua (United Kingdom) and Mr. Ronald Sibongiseni Ntuli (South Africa) were also re-elected. Newly elected Directors include Mrs. Leila Mokaddem (Tunisia), as a nominee of the African Development Bank. The shareholders noted the challenges and negative reports disputing African Multilateral Financial Institutions and undermining the commitments that African states have made in the treaties establishing these institutions, including Afreximbank. In a statement unanimously endorsed and adopted by the General Meeting, Mr. Wale Edun, Nigeria's Minister of Finance and Chairman of the General Meeting, affirmed the shareholders' unwavering confidence in the Bank's financial resilience and mandate to drive Africa's trade-led growth. Mr. Edun stated: 'The shareholders affirm their respect for the 1993 treaty establishing Afreximbank, signed and ratified by African states, noting that it enshrined binding sovereign commitments and underpinned the preferred creditor status (PCS) of the Bank, shielding its loans from sovereign debt restructurings. 'Additionally, shareholders reaffirm the commitment of the Bank's Member States to the Preferred Creditor Status (PCS) enshrined in the Bank's Establishment Agreement to which all Member States are signatories and call for collective responsibility in safeguarding the integrity of African Multilateral Financial Institutions (AMFIs). 'This meeting confirms shareholders' full commitment to supporting the Bank's mission, and call upon all stakeholders to engage constructively, reflecting the Bank's robust legal protections and credit fundamentals.' This collective statement by Afreximbank's shareholders sends a strong signal to partners, rating agencies, and the broader financial community: the Bank remains a trusted and protected institution anchored by solid legal foundations and an unwavering mandate to drive Africa's economic transformation through trade. Nearly 6,000 delegates attended the 32nd Afreximbank Annual Meetings, making it the Bank's most highly attended Annual Meeting in its 32-year history. Attendees included 22 current and former African and Caribbean Heads of State or their representatives, as well as policymakers, academics, business leaders and high-profile dignitaries. Media Contact: Vincent Musumba Communications and Events Manager (Media Relations) Email: press@ Follow us on: X: Facebook: LinkedIn: Instagram: About Afreximbank: African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra- and extra-African trade. For over 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa's trade, accelerating industrialisation and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank has set up a US$10 billion Adjustment Fund to support countries effectively participating in the AfCFTA. At the end of December 2024, Afreximbank's total assets and contingencies stood at over US$40.1 billion, and its shareholder funds amounted to US$7.2 billion. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody's (Baa2), China Chengxin International Credit Rating Co., Ltd (CCXI) (AAA), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB-). Afreximbank has evolved into a group entity comprising the Bank, its equity impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure (together, "the Group"). The Bank is headquartered in Cairo, Egypt. For more information, visit:

Nigeria: Oyo govt advocates technology-driven approach for agric transformation
Nigeria: Oyo govt advocates technology-driven approach for agric transformation

Zawya

time9 hours ago

  • Zawya

Nigeria: Oyo govt advocates technology-driven approach for agric transformation

The Director General of Agribusiness Development Agency in Oyo State, Dr Debo Akande, has advocated a technology-driven approach to agricultural development nationwide. He made the submission in his lecture titled, 'Industrialisation of Agriculture for Economic Development', as part of activities marking the 86th birthday of Ekaarun Olubadan of Ibadanland, Oba Adebayo Akande and the 18th anniversary of an Ibadan-based radio station, Splash FM 105.5, held at the Alumni Hall, University of Ibadan. 'We must embrace a value-chain-based approach involving the downstream, midstream and upstream sectors. Private sector-led processing, technological innovation, and science-driven practices as crucial to transforming agriculture,' he said. He decried the low budgetary allocation to the sector, adding that if the government must diversify from the oil and gas sector of the economy, the best alternative is the agricultural sector. The sector, according to him, is not just food security, as important as it is, but also a means for economic growth and development. He added that Nigeria needs to design policies and programmes that are not just focused on food security alone but could also address sustainable economic growth and development. 'Agriculture is not just food security, as important as it is, but also a means for economic growth and development. We need to design policies and programs that are not just focused on food security alone but could also address sustainable economic growth and development. 'Agriculture has gone beyond hoes and cutlasses, it's innovation and technology driven by science. L'Oréal, one of the largest companies in beauty and make-up, is looking for a scientific solution from the International Institute of Tropical Agriculture on green innovations,' Akande added. In his remarks, the celebrant, Ekaarun Olubadan, Oba Akande, dedicated his birthday to God, family members and associates for their support over the years. Speaking through the Managing Director and Chief Executive Officer of WestMidlands Communications, Atinuke Adetunji, Akande said he was overwhelmed with the calibre of people who surrounded him. The Ekerin Olubadan designate stressed further that unwavering support and love received daily from both the family members and associates have kept him going, which money cannot buy. He said, 'It is not every time a man gets to celebrate 86 meaningful years of life, nor is it every day that one sees a dream like Splash FM grow, thrive, and redefine a city's media culture for 18 vibrant years? 'But what is life, without the people who walk its journey with you? Today, I'm not just celebrating my birthday, I am celebrating you- my dear friends, family, colleagues, and loyal partners. 'I am overwhelmed by the love that surrounds me, by the laughter in this hall, by the kind words that have been spoken, and by the faces that have travelled near and far just to honour me. 'To my friends, your unwavering support, your constant check-ins, your belief in my person and vision, these are treasures money cannot buy. 'To my dear family, your love is my compass. To the entire team at WestMidlands Communications, past and present, thank you for giving meaning to a vision I once whispered to myself. You've turned a single frequency into a household name. You've taken radio beyond the studio, you've taken it into lives. 'I often say that Splash FM is not just a radio station, it is a voice of values, a companion, a teacher, an entertainer, and most importantly, a torchbearer.' Akande explained that Splash FM remained the first private radio station in Ibadan, and also the first to stream live on Facebook in the ancient city. He continued, 'As I look at all of you, I am reminded again that legacy is not only built in structures, it is built in values. I stand before you today not just as a Royal Majesty or a broadcaster, but as a grateful man.' In his opening remarks, the Chairman of the Governing Council of Lead City University, Prof Jide Owoeye, who chaired the occasion, said the commitment of the celebrant to civic education, youth empowerment, cultural promotion, and community health has turned media into a ministry. He commended the celebrant's choice of celebrating his birthday with an intellectual colloquium featuring eminent scholars and practitioners engaged in topical public discourse. He, however, charged the traditional rulers to allocate land to the cooperative to unlock rural transformation. 'To our traditional rulers, lead this revolution from your palaces. Allocate land, encourage cooperatives and open dialogue with agribusiness investors. 'To our youth, do not despise the soil. The tech you love can meet the land you ignore. Agro-entrepreneurship is not outdated; it is under-marketed,' he added.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store