Doing Business Morocco-Nigeria: Significant economic potential

Doing Business with Nigeria » is the title of the first opening webinar of the « RoadShow Export Webinars: Doing Business 2023 organized this week by the Moroccan Association of Exporters (ASMEX).

This virtual meeting follows the development of trade and bilateral relations between the two countries, ASMEX said in a statement, noting that the conference was chaired by Saloua Karkri, President of the Africa Commission for
ASMEX and led by Brahim Allali, expert in corporate internalization strategy.

Nigeria is one of the largest economic markets in Africa, with which Morocco is involved in several major projects, in particular the major GAZODUC project. The primary objective is to seize existing investment opportunities and make the most of them, in particular through the African Free Trade Area (ZLECAF) which aims to strengthen trade between the countries of the continent in general, and exchanges between Morocco and Nigeria in particular “revealed Saloua Karkri, quoted in the press release, in her opening remarks addressed to more than 135 companies present at this meeting.

Thus, ASMEX specifies that out of the 3 billion dollars raised for African startups, the largest share goes to Nigerian startups, hence the interest in boosting trade between Rabat and Abuja.

In this sense, Brahim Allali reported on the major joint projects between the two countries indicates the same source, in particular the visit of King Mohammed VI to Nigeria in 2016 and the visit of His Excellency Muhammadu Buhari to Morocco in 2018. Visits which have marked a historic moment in the history of relations between the two countries, Allali said.

Among the major projects linking the two nations, ASMEX cites the gas pipeline megaproject (5600km), approved seven years earlier during the royal visit, and which will also have a great impact on bilateral relations between the two countries, thanks the free trade area (Zlecaf) which will facilitate the free movement of goods and services, and will strengthen the exchange of expertise.

Thus, Brahim Allali pointed out that the Nigerian market is full of important sectors with high export potential, which have not been exploited, such as that of the mechanical and metallurgical industry (IMM), Electronics/Electrical, Chemicals-Parachemicals in addition to the Agribusiness and Fisheries market which presents countless opportunities for Moroccan investors and exporters.

He thus noted that the main trading partners of Nigeria during the year of 2022 are the European Union, India, Canada, the United States, and Indonesia with commercial exchanges mainly concentrated on the export and composed 89% of mineral fuels, 3% maritime or river navigation, 2% fertilizer, 1.30% cocoa and its preparations, 4% other products.

Trade between Morocco and Nigeria nevertheless remains insufficient and does not at all reflect the impact of the two countries on the continent, but the development potential is considerable and the two parties are determined to develop it in the years to come, raises the ASMEX.

The Association thus returns to the imports and exports between the two countries which have experienced an increase over the period of 2019-2022. Morocco moved from 38th supplier to Nigeria in 2022 against a position of 43rd in 2019 while Nigeria moved from 65th to 56th supplier to Morocco.

Nigeria’s assets as a land of investment begin with its strong growth
population estimated at more than 225 million inhabitants in 2022 with a growth rate
demographic which amounts to 2.53% (the country the most populated country of Africa), underlines the same source.

But this country is also the 1st power in Africa in terms of GDP (440.8 billion dollars in 2021), an important hydrocarbon resource, 1st African producer and 5th world oil producer, 11th world proven oil reserves, 9th reserves

The country, continues ASMEX, also has a large mining potential (reserves of gold, barite, tin, zinc, iron ore, coal, limestone, niobium, lead and others, thus revealing a rapid development of technology financial and film industry
(Nollywood), with high growth potential.

Moreover, for the most promising sectors, Brahim Allali particularly cited agriculture and agro-food with the production of mechanized crops such as rice, corn, sugar cane…

He also cited oil (production but especially refining and by-products), construction, civil engineering, construction, carpentry, interior decoration and maintenance, communication and e-commerce (mobile telephony, computer products and equipment, e-distribution …) and finally energy through the production and distribution of electricity.

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