While countries across the Commonwealth are experiencing rapid growth and modernisation, one of the most remarkable Commonwealth growth stories is undoubtedly that of Nigeria. Since the year 2000, the Nigerian economy has grown from less than $60 billion to more than $180 billion, more than tripling in size over the past two-and-a-half decades. On the margins of this year’s Commonwealth Trade and Investment Summit, we spoke to Hon. Dr. Jumoke Oduwole, about how Nigeria is seizing the Commonwealth opportunity to boost this growth even further.
Tapping into the Commonwealth Advantage
“In these turbulent terms, considering that we have age-old relationships, we have a common language, we have the Commonwealth Advantage, it’s time to really deep dig and seize the Commonwealth opportunity. There is a lot that we can do, there’s room for a lot more progress, and coming together like this gives us the opportunity to make those connections and discuss how we can build those relationships.”
Responding to Global Economic Shocks
And with all eyes on the United States’ harsh tariff regime, how is Nigeria responding to the global economic shocks which have touched every corner of the Commonwealth?
“Nigeria has a good strategic relationship with the US, which has been ongoing for many years. We want to calmly continue our consultations. Nigeria was announced [at a US-tariff rate] of 14 percent, our biggest export by far to the US is oil, and that’s exempt under AGOA (the African Growth and Opportunity Agreement).”
“Basically, speaking to Nigerian businesses, this is disruptive in terms of uncertainty. We are speaking to them actively about diversification, and other market opportunities. As part of President Tinubu’s eight-point agenda, item seven already enshrines a focus on diversification, which my ministry has been working on for quite a while. Nigerian businesses already export to over 200 countries and territories around the world, so having conversations with Commonwealth countries brings us plenty of opportunities.”
Reforms and Investment under President Tinubu
Closer to home, Nigeria’s new President, Bola Tinubu, has conducted a series of ambitious reforms designed to get the country’s public finances under control and drive investment. Previous administrations have faced significant challenges in harnessing the country’s enormous potential, given a difficult regional landscape.
“Everybody has been watching the Nigerian economy for a while. On day one [of his new administration], President Tinubu removed the fuel subsidy – it was painful, it was like surgery. We also had the foreign exchange crunch, so accessibility and lack of transparency around the exchange rate also required a lot of work. We have a new Central Bank governor, who is working on that. We’re also working on fiscal policy. We have a whole new piece of tax legislation in Parliament right now, after a series of public hearings, which will modernise our economy and tax system. Those kinds of difficult reforms has led to a bouquet of stability, building month-on-month. The private sector is beginning to build positively on that platform.”
“In the last 22 months, President Tinubu has really held himself up as Nigeria’s Chief Investment Officer. He’s made a series of international trips to other countries, as of December he had galvanized $50.8 billion investment, across a range of sectors like energy, minerals, financial services, and agribusiness.”
Diversifying the Economy
While Nigeria’s exports have traditionally been led by the energy sector, Dr Oduwole is keen to stress the strides that the country is making towards diversification, promoting a wider range of trade and investment opportunities.
“In terms of priority sectors, we have a lot of interest in minerals and mining. We have over 44 commercially viable minerals which people have been interested in – cobalt, bitumen, and all sorts of other minerals. There’s also oil and gas, agriculture and agribusiness, tech, ICT, financial services, the creative sector – the list goes on.”
The Power of the Diaspora
And finally, Dr Oduwole turns her attention to one of Nigeria’s secret weapons – the Nigerian diaspora. Today, more than 20 million Nigerians live outside of the country’s borders, with many of them making their homes in Commonwealth countries such as Cameroon, Ghana, the United Kingdom, and Canada.
“We’ve found ourselves in a situation where people-to-people links are running ahead of government! They’re not waiting for formalities – people are already involved in building links across education, business, and the cultural space. That’s a very beautiful thing. The Nigerian Government just wants to enable people to embrace that friendship, fostering collaboration between our economies.”