Economy
EU plans to support Nigeria’s economic integration, diversification efforts
The European Union (EU) says it is committed to supporting Nigeria in tackling issues hindering investment and trade to engender economic integration and diversification. The EU ambassador to Nigeria and Economic Community of West African States (ECOWAS), Ms Samuela Isopi, gave the assurance at the 8th edition of the EU-Nigeria Business Forum tagged: “Nigeria and the New Economy,” on Thursday in Lagos. Isopi emphasised the need to have a vibrant diversified economy based on a business environment that is attractive to investors. She said the Nigerian economy, like other economies around the world, was faced with challenges caused by the COVID-19 pandemic and the ongoing Russia-Ukraine war.
“In the first quarter of 2022 the Nigerian economy grew by 3.1 per cent and this was driven by the non-oil sector. However, the economic situation remains difficult. Countries that are still struggling to recover from the COVID-19 pandemic now face further challenges caused by the Russian-Ukraine war. In Nigeria, the shockwaves are already being felt on fuel, fertilisers and food prices. Therefore, Nigeria’s new economy should be focused on finding a path through difficult terrain, identifying opportunities and adopting a sustainable business approach,” she said. She added that the ongoing conflict in Europe brought to the fore the issue of Europe’s energy security and the need to diversify sources of gas imports for the EU and member states. “This will provide a win-win opportunity for Nigeria and the EU,” she said.
The ambassador said the EU remained the largest investor in Nigeria and the number one trading partner accounting for over 20 per cent of Nigeria’s trade with the world. She added that EU-Nigeria trade in 2021 rose to 28.7 billion Euros with a significant trade balance of over 6 billion Euros in favour of Nigeria, despite the global downturn in trade after the pandemic. “Nevertheless, these figures highlight a long-standing problem, which is the country’s dependency on oil and the urgent need to diversify. Nigeria has great potential in new fields of endeavour, but the new economy is also about putting forward innovative and modern solutions to established sectors. Tomorrow’s session would be dedicated to the climate-smart agricultural sector as a new growth engine. This is a critical sector to Nigeria as it relates to food security and creation of employment for the youth,” she said.
Gov. Babajide Sanwo-Olu of Lagos State stressed the need for a mutually beneficial relationship with the EU in the face of emerging dynamics in the global economy. “There have been a lot of global disruptions owing to the COVID-19 pandemic and the Russia-Ukraine war. The impact of these events has provided an opportunity for us to be more intentional, pragmatic and committed to improving partnerships and economic diversification. It is, therefore, pleasing to know that the 8th EU-Nigeria business forum is focused on backward integration policies, opportunities to increase gas exports to Europe and new initiatives for the agricultural sector, against the backdrop of current social and economic realities. This will help grow sustainable industrialisation, create jobs, food security and increase the volume of trade between European countries,” he said. Sanwo-Olu added that the Lagos State government, over the past eight months, had developed a 30-year development agenda to be achieved by 2052 and launched later in the year. He said the plan was all-inclusive in making Lagos a thriving economy by leveraging the Nigerian market to become the export hub for fast-moving consumer goods, increasing formal retail trade and with robust healthcare and transportation systems.
“In 2021, we launched an agricultural master plan to make Lagos a food secure state and we are on the verge of completing the biggest 32,000MT per hour capacity rice mill in the country. With Lagos being the main trade hub in West Africa and regional gateway for transit and port services, we will be opening the deep-sea ports in Lekki, which will further decongest the Tincan and Apapa ports,” he said. According to him, with the deep-sea ports project, Lagos will continue to remain a hub for international trade.“We also intend to establish a world-class international financial centre because the financial services sector accounts for 47 per cent of GDP in Lagos, while Fintech investment in Nigeria has grown to almost 200 per cent. The tech space can drive value to about 10 to 15 per cent, which is currently about 3 per cent, making Lagos an investment destination for tech start-ups,” he said.
Also speaking, Prince Clem Agba, Minister of State, Finance, Budget and National Planning, said the business forum was in alignment with government policies and efforts at diversification. According to him, the national development plan of 2021-2025, which focuses on concentric diversification aims to unlock Nigeria’s potential for sustainable, holistic and inclusive national development. He said the plan identified critical macro-structural issues affecting concentric economic diversification and had proffered strategies for addressing them. “A robust macro-economic framework developed for the plan recognises that sectors have different growth potential, thus leveraging on those sectors with the highest potential for stimulating the growth of the Nigerian economy,” said Agba. According to him, some of the sectors with high growth potential and linkages are agriculture and food security; integrated rural development; manufacturing and industrialisation; tourism, hospitality and culture; digital economy; mining and solid minerals among others. The plan also seeks to generate 21 million jobs and lift 35 million Nigerians out of poverty, thereby setting the stage of achieving the government’s commitment of lifting about 100 million people out of poverty in 10 years,” he said.
Mary Ojulari, President, European Business Chamber (Eurocham), said the chamber would continue to leverage the strong partnership between the EU and Nigeria to enable businesses to thrive. She said “With a growing membership of over 40 companies, Eurocham Nigeria actively promotes trade and investment whilst advocating for the adoption of European best standards. “Given the countless issues faced by European businesses, such as government policies, unstable fiscal monetary and trade policies, there is need for Eurocham to have consistent engagement with the government to drive success stories of business in Nigeria,” she said.
The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.
The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.
He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.
“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”
Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”
The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.
With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.
Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years. The approval followed Wednesday’s FEC meeting presided over by President Bola Tinubu at the State House, Abuja. The Minister of Budget and Economic Planning, Senator Atiku Bagudu made this known after the meeting.
The Minister said the Federal Government is projecting a total revenue inflow of N34.33 trillion in 2026, including N4.98 trillion expected from government-owned enterprises. Bagudu said that the projected revenue is N6.55 trillion lower than earlier estimates, adding that federal allocations are expected to drop by about N9.4 trillion, representing a 16% decline compared to the 2025 budget.
He said that statutory transfers are expected to amount to about N3 trillion within the same fiscal year. On macroeconomic assumptions, FEC adopted an oil production benchmark of 2.6 million barrels per day (mbpd) for 2026, although a more conservative 1.8 mbpd will be used for budgeting purposes. An oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar were also approved.
Bagudu said the exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections. He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.
The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies. Bagudu said FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, the Senate approved the external borrowing plan of $21.5 billion presented by President Tinubu for consideration The loans, according to the Senate, were part of the MTEF and Fiscal Strategy Paper (FSP) for the 2025 budget.
The spot rate on Nigerian Treasury bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury bills with one-year maturity has now surpassed Nigeria’s 16.05% inflation by 145 basis points following a recent decision to keep the policy rate at 27%.
The Apex Bank came to the primary market with N700 billion Treasury bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.
Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90% of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.
The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30%, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50%, the same as the previous auction.
Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50%, up from 16.04% at the previous auction.
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