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Trade between Nigeria and Germany hit €3bn in 2022

The German Ambassador to Nigeria, Annett Gunther, has said that the trade volume between the Federal Republic of Germany and Nigeria hit €3 billion in 2022.

Briefing journalists in Abuja, Gunther disclosed that Nigeria is Germany’s second-largest trading partner in Sub-Saharan Africa and is an important political, economic and cultural partner.

Gunther said: “Germany contributed a total trade volume of €3 billion in 2022 (up from €2 billion in 2021) and the European Union (EU), is Nigeria’s most important trading partner with total trade volume of €45,8 Billion. Germany’s Foreign Direct Investment (FDI) in Nigeria will prospectively surpass the €1 billion mark.”

She said Germany’s main exports to Nigeria were machines (28 percent), food products (20 percent) and chemical products (19 percent), saying that Nigeria’s main exports to Germany were crude oil (83 percent), food products (12 percent) and other raw materials (4 percent).

According to Gunther, “There are 90 German companies present in Nigeria, creating around 1700 jobs directly and minimum 10-fold indirectly. All EU countries together have generated around 160000 jobs in Nigeria. Amongst the most active companies are Bayer, Bosch, DHL, Henkel, Knauf, Krones, Liebherr, Lufthansa, SAP, Siemens Energy and Synlab.”

Gunther also said the German company, Beiersdorf, has a large factory in Lagos, employing some 1000 Nigerians.

“The state-of-the-art factory produces, among others, the well-known skin cream Nivea, known for its blue, round boxes,” Gunther also said.

In the fields of energy and climate, Gunther stated that a bilateral energy partnership to build up renewable energy production and improve energy efficiency has existed between both countries since 2008.

“This has been expanded in line with the Federal Government’s National Hydrogen Strategy with the opening of a German-Nigerian Hydrogen Office in Abuja, which supports the hydrogen sector with a view of increasing Nigeria’s export capabilities.

“Presidential Power Initiative is ongoing to improve Nigeria’s electricity grid with Siemens technology as a basis for enhanced economic growth.

“There is interest by German companies in implementing Nigeria’s Energy Transition Plan (ETP), using German high-tech investments in climate-friendly technology,” Gunther stated.

In terms of German Government’s cooperation with Nigeria, Gunther explained that Germany implements its cooperation activities in Nigeria in the three pillars of Development, Stabilisation and Humanitarian, as well as Democracy, Rule of Law and Human Rights.

In the field of development, the German envoy said Germany has committed a total of €600 million in development cooperation grants in ongoing projects, making it the second biggest donor.

“On top of this, Germany has pledged €620 million for ongoing projects with ECOWAS. Key activity areas are economic development, modernisation, climate protection and energy transition, education and skills development for youths, improving agricultural efficiency and financing, peacebuilding and conflict prevention, health and social protection.

“As part of economic development activities, a cashew nut project has been set up in Lagos to train Nigerians in production and certification of cashew fruits for exporting,” Gunther disclosed.

In the area of stabilization, Gunther said in the Lake Chad Region, Germany has since 2019, contributed €96 million of €120 million raised along with other partners, to the United Nations Development Programme (UNDP) implemented Regional Stabilisation Facility (RSF) to stabilise Boko Haram conflict-affected areas.

“The rebuilt village of Ngarannam in Borno State, destroyed by Boko Haram in 2015 is the result of this activity amongst others. The village now boasts a school, a police post, trenches and watchtowers, and the returning population were provided with cash stipends, foodstuff and livestock to rebuild their lives,” Gunther also disclosed.

She further said Germany is committed to the ongoing implementation of the Borno Model for managing mass exits from Boko Haram, complementing EU €20 million project.

Gunther added that along with Norway, Germany has made substantial contribution to the total of €11.6 million required to fund the North-West preventive programme launched with the National Security Advisor (NSA) and Governors of Zamfara, Katsina and Sokoto to fight banditry and improve livelihoods.

In terms of humanitarian assistance, Gunther stated that Germany’s main humanitarian focus was protection, food security, health and shelter.

“Germany supported the regional approach on humanitarian assistance in the Lake Chad Basin Region with €87 million in 2022 and was the second biggest humanitarian donor in Nigeria with a total volume of €53,4 million in 2022.

“Germany was the biggest donor of the Nigerian Humanitarian Fund with €12 million in 2022,” Gunther further said.

Source : Vanguard

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