Russians Chasing Missed Economic Opportunities in Nigeria
Under the aegis of the newly established Nigeria-Russia Chamber of Commerce and Industry, Russians are now gearing up to revamp the Ajaokuta Steel Industry that was abandoned after the collapse of the Soviet Union, and further take up energy, oil and gas projects in Nigeria, as well as facilitate trade between Nigeria and Russia.
After
Soviet's collapse, Russia has been struggling to find ways of regaining
part of its Soviet-era economic influence throughout Africa, and
Nigeria has been high on Russia's agenda for reviving multifaceted
business ties, at least to share its market and take up opportunities
similar to the United States and China.
There
had been a number of deals and business proposals previously, featured
in Russia-Nigerian relations. As far back in June 2009, Dmitry Medvedev
as president visited Nigeria for the first time, held talks on possible
nuclear energy, oil exploration and military cooperation.
According
to Russia's Rosatom, the protocol on nuclear offered the possibility of
bilateral cooperation for the development of nuclear infrastructure and
the joint exploration and exploitation of uranium deposits. The aim,
two nuclear plants estimated cost at $20 billion – the bulk of it by
Russia, is to boost Nigeria's electricity supply.
Russia's
second-largest oil company, and privately controlled Lukoil, has gone
forth and back these several years with plans to expand its operations
in Nigeria, and in a number of West African countries.
Nigeria
is an economic powerhouse in West African region. As it is known,
Nigeria is one of the Africa's fastest growing economies and it boosts
the largest population. Russia and Nigeria have some sort of economic
relations, but these are not consistent with the long-standing cordial
relations between both countries.
In
addition, Nigeria is a vast market with huge potentials for prospective
foreign investors and so is Russia. Regrettably, investors from both
sides appear to know little or nothing about these opportunities. This
is, usually attributed to the apparent inadequate knowledge of the many
investment opportunities in both countries.
Statistics
are extremely hard to obtain. By the end of 2018, Russia's trade with
Nigeria was almost US$600 million, still seen as far below the full
potential of trade and economic cooperation between the two countries.
Stunningly, talking about bilateral economic footprints, both Russians
and Nigerians are unprepared to give needed useful information about
Russia's investment in Nigeria. Seen as a two-way street, Nigeria's
presence in Russia is only the diplomatic representative office.
New
windows, in practice, are still opening especially with the start of
African Continental Free Trade Area (AfCFTA), the most ambitious
integration initiative embedded in the Agenda 2063 of the African Union.
It stresses working in industrial hubs, localizing manufacturing and
marketing goods throughout Africa.
Nigeria-Russia
Chamber of Commerce and Industry, established and inaugurated late
September 2021, now has as its primary task to raise bilateral economic
relations between the two countries. It will help implement some of the
significant issues that were discussed during the historic first
Russia-Africa summit held October 2019 in Sochi, Russia.
President,
Nigeria-Russia Chamber of Commerce and Industry, Dr Obiora Okonkwo told
the visiting Russian delegation headed by Ambassador Oleg Ozerov, from
the Ministry of Foreign Affairs of the Russian Federation and Head of
the Secretariat of Russia-Africa Partnership Forum (RAPF), that
establishment of the NRCCI was the first step towards resuscitating and
strengthening existing relations between Nigeria and Russia.
He
said the inauguration of the chamber shows the beginning of a new
journey that will enable "Nigeria explore business relations with the
Russian Federation, and will promote economic growth, technology
transfer, development and foster better understanding between both
countries."
Reports
indicated that Nigeria-Russia Chamber of Commerce and Industry (NRCCI)
was created and incorporated under the Companies and Allied Matters Act
1990, and has established beneficial relationships and contacts with
numerous economic development organizations in the Russian Federation.
The
principal objectives of NRCCI is to promote commerce, industry, trade
and ancillary services; foster, advance and protect commercial,
industrial, trade and professional enterprises. "We are therefore
seeking to establish an industrial development mechanism built on the
principle of mutual beneficial relationships with their own business
groups. The strategy is to establish and sustain business contacts with
the existing numerous economic development organizations in Russia and
Nigeria," explained Okonkwo.
The
Russian business delegation included Andrei Albeshchenko from the
Association of Economic Cooperation with African States; Andrei
Vladimirov, State Atomic Energy Corporation Overseas; Stepan Belanovich,
Uralchem United Chemical Company JSC; Maksim Poltoradnev, Uralchem
United Chemical Company JSC and other Russian business executives.
The
business visit to Abuja was organized by the Association of Economic
Cooperation with African States (AECAS) with support from the Russian
Foreign Ministry, assistance from the Russian Embassy in the Federal
Republic of Nigeria. Ozerov and his delegation paid a courtesy call on
Vice President Yemi Osinbajo at the Presidential Villa.
According
to reports, Vice President Osinbajo has expressed keen interest in
developing bilateral cooperation and the need to increase the presence
of Russian companies in Nigeria. Vice President Osinbajo stressed the
fact that the formal inauguration of a Nigeria-Russia Chamber of
Commerce and Industry (NRCCI) will consolidate efforts to deepen the
long-lasting relationship and invigorate business opportunities between
Federal Republic of Nigeria and the Russian Federation.
"We
are interested in developing relations with Nigeria. It is one of the
largest and most promising economies where we see lot of opportunities.
We were happy to hear that the Vice President supports the development
of bilateral economic relations. Russia has a lot to offer, from new
technologies to fertilizers, agriculture, energy and infrastructure
projects. We must intensify cooperation to achieve tangible results
prior to the second Russia-Africa summit," Ambassador Oleg Ozerov, Head
of the Secretariat of the Russia-Africa Partnership Forum, told
journalists during the press conference following the meeting.
Within
the framework of the joint declaration adopted at the first
Russia-Africa Summit, the Ministry of Foreign Affairs of the Russian
Federation established the Secretariat of the Russia-Africa Partnership
Forum. The Secretariat of the Russia-Africa Partnership Forum also moved
to create an Association of Economic Cooperation with African States
(AECAS).
*Kester Kenn Klomegah writes frequently about Russia, Africa and the
BRICS. As a versatile researcher, he believes that everyone deserves equal
access to quality and trustworthy media reports. Most of his well-resourced
articles are reprinted elsewhere in a number of reputable foreign media.
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Russians Chasing Missed Economic Opportunities in Nigeria
Under the aegis of the newly established Nigeria-Russia Chamber of Commerce and Industry, Russians are now gearing up to revamp the Ajaokuta Steel Industry that was abandoned after the collapse of the Soviet Union, and further take up energy, oil and