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Nigeria, others sign $66.3b trade agreements


Nigeria, United Kingdom, Germany and China have signed trade agreements for investment commitment valued at $66.3 billion.
 
Minister of Industry, Trade and Investment, Dr. Okechukwu Enelamah, noted that the $66.6 billion foreign investment commitment would be felt by all facets of the country’s economy during the implementation stage.
 
He unveiled the package in a chat with New Telegraph at the Commerce and Industry Correspondents Association of Nigeria (CICAN) public lecture in Lagos.
 
He stated that the pacts were the outcome of recently-held talks between Nigeria and the three countries.
 
Enelamah said that the discussions focused on growth, investment and jobs and also provided a forum where high level trade, investment, economic development and discussions will take place further in the future.
 
Enelamah also revealed that based on the agreement signed with Germany, the country’s automaker, Volkswagen, was set to produce over two million units of vehicles per year in Nigeria as part of the joint vision for the establishment of an automotive hub in Nigeria.
 
He explained that the German automaker was committed to realising Nigeria’s auto policy objective, noting that the production of the two million vehicles would see Nigerian roads being flooded with different segments of Volkswagen vehicles when the implementation phase is completed.
 
According to him, Volkswagen is to implement a phased approach in relation to the assembly of vehicles, initially from assembly kits with the long-term view of establishing Nigeria as an automotive hub on the West Coast of Africa.
 
Sparking on that of China, Enelamah revealed that a total of 13 MoUs were signed with the Chinese government, including that of Shandong Ruyi International Fashion Industry for $2 billion investment in an ambitious cotton value chain revitalisation project.
 
He said the investment would comprise aggregation and off-take of cotton from farmers in Nigeria for ginning, spinning and weaving; as well as manufacturing at least 300 million metres of African print, which will meet 20 per cent of West Africa’s demand.
The minister noted that the locations and siting of investments by Ruyi Group in Nigeria include Enyimba City in Abia, Lekki Free Trade Zone, Lagos and Kano Free Trade Zone, Kano.
 
On completion of the Ruyi cotton project, Enelamah stated that it would put to an end importation of textiles as there will be abundant local textiles in Nigerian market.
 
“We formed partnerships with Germany and signed MoUs with United Kingdom, Germany and Peoples Republic of China. This includes the German-Africa Business Delegation/NACCIMA MoU.
 
That is between the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the German-Africa Business Association on capacity building and trade facilitation.
 
“Agreement between the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending, (NIRSAL) and the PETKUS Technologies GmbH, a company that specialises in post-harvest agricultural value chain was also signed,” he said.
 
“With China, a total of 13 MoUs were signed with the Federal Government of Nigeria and its Chinese counterpart in Beijing.

For instance, the Federal Ministry of Industry, Trade and Investment signed a MoU with Shandong Ruyi International Fashion Industry for $2 billion investment in an ambitious cotton value chain revitalisation project in Nigeria.
 
“The investment would comprise aggregation and off-take of cotton from farmers for ginning, spinning and weaving; as well as manufacturing at least 300 million metres of African Print, which will meet 20 per cent of West Africa’s demand.