World
Did Russia Extend Trade Preferences to Nigeria
By Kestér Kenn Klomegâh
More than a decade ago, Russia’s Foreign Affairs Minister, Sergey Lavrov, held a review meeting with his Nigerian counterpart Minister, the late Mr Ojo Mbila Maduekwe, who paid a three-day working visit to Moscow. After the closed-door bilateral talks, both ministers held a brief media conference, and one of the significant questions raised there was Moscow was prepared to offer trade preferences to Nigeria.
Extending trade preferences was interpreted as an integral part of strengthening bilateral economic and trade cooperation between the two parties. During the Soviet days, Nigeria benefitted tremendously from Soviet assistance. And without a doubt, Russia has cordial post-Soviet relations with Nigeria.
Mr Maduekwe headed the delegation for the ‘business-as-usual’ intergovernmental commission on economic and scientific-technical cooperation on March 17. They agreed on a broad range of bilateral economic issues, many of which are still not implemented.
But then, Russia has never honoured its promise of extending trade preferences in practical terms to Nigeria. That media conference was held in March 2009.
Professor Dmitri Bondarenko, deputy director of the Russian Academy of Sciences’ Institute for African Studies, told Inter Press Service (IPS) interview that as cooperation between Nigeria and Russia was strengthening, Russia should seriously consider extending preferences to some goods from Nigeria to boost trade between the two oil producers further.
Bondarenko told IPS that the intergovernmental commission could become a tool for the revival of Russian-Nigerian economic cooperation.
This possibility is symbolised, albeit ambivalently, by the Ajeokuta plant, which could become the largest metal-producing plant in Africa. The building of the steel plant started in 1970 during the Soviet era. According to Bondarenko, it was “‘unfortunately stopped in the late 1980s due to problems on both ends.”
This has made the Ajeokuta project “a painful topic in discussions among Nigerian policy experts on Russian-Nigerian relations.”
For trade relations between Russia and Nigeria and other African states to improve appreciably, Bondarenko suggested that ‘”Russia gives some trade preferences to African countries – for example, tax exceptions or reduction among other measures. This can become an effective political step to strengthen relations with African countries.”
However, at least two points should be taken into account: firstly, such measures should only apply to specific goods so as not to discourage non-African partners. For example, if Russia gives preferences to African imports of pineapples and bananas, it would have to do the same with Latin American importers of the same goods for economic and political reasons.
Secondly, such preferences should apply to direct imports by African companies but not to trade mediated by Russian or third countries companies. The value of trade, having practically doubled in 2008 to about 300 million dollars, and the allowance for re-exports – more than one billion dollars – serve as an indicator of current growth.
Today, Nigeria is Russia’s second-largest trade partner among sub-Saharan African countries. Russian business circles show an ever greater interest in entering the promising market of that large country.
Dr Bashir Obasekola, a prominent Nigerian economist and the outgoing president-general of an organization representing the Nigerian community in Russia, told IPS that the trade current trade statistics of about $300 million seems peanuts given the potential of both countries and the size of their economies.
“The volume of trade should be in the billions of dollars, even without military hardware. One of the major hindrances to free trade and a significant increase in trade transactions between Nigeria and Russia is the lack of direct air flights,’” Obasekola said further. “This makes it more inconvenient and expensive for potential investors to travel easily to both countries. Besides, there are no adequate economic and social statistics available to potential Russian and Nigerian investors.”
He explained that Russian industries need raw materials, agricultural produce and other consumer goods that are cheaply available in Africa. Without special incentives, these things cannot easily get to the Russian market.
“Such measures as changing import-export tariff policies could encourage buyers and sellers in both countries to trade. Adequate legal protection should be made available for investors in both countries. The lack of legal mechanisms is sometimes being exploited by criminals in both countries,” he said and added that this led to fraud and the illegal seizure of properties and investments.
Apart from the differences in the level of economic development and climate, Russia and Nigeria are similar in several ways. Both countries have large populations with a variety of mineral resources. Nigeria and Russia are both suppliers of oil, and both play significant roles in regional and world affairs.
Both countries are emerging economies, although Russia is far ahead in economic development, a member of the Group of Eight industrialized countries (G-8), while Nigeria is aspiring to be part of the 20 most-developed economies by the year 2020.
The Russian private and public sectors could also play significant roles in the infrastructural development (energy, housing, roads and railways) of Nigeria, Obasekola said finally.
The two governments hoped that the commission would help them to actualize the existing rich potential that both Russia and Nigeria possess in the trade and economic field and in the sphere of large investment projects.
These would include projects related to the development of infrastructure; the ferrous and non-ferrous metals industry; electric power, including nuclear energy; and the extraction of hydrocarbon and other mineral raw materials.
“We agreed to speed up work on modernizing the legal base of our relations. A whole array of important draft documents are in the stage of elaboration, including an agreement on the encouragement and protection of investment,” Lavrov said after their official meeting.
Russian foreign ministry’s spokesperson, Andrey Nesterenko, said at the start of the diplomatic talks that, “economic and trade ties between Russia and Nigeria have been picking up in recent years, which is consistent with the two leaderships’ policy of taking the partnership to a new qualitative level.”
Nesterenko added that “key aspects of Russian-Nigerian cooperation are to bring all the available suggestions for large projects in the energy sphere, the ferrous and non-ferrous metals industry and other sectors onto a practical footing.”
By Aduragbemi Omiyale
A Memorandum of Understanding (MoU) to support sustainable food production at a range of scales towards climate adaptation while protecting and preserving soil health, biodiversity, and water resources has been sealed between Olam Agri and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).
The deal provides a framework that will facilitate collaboration between the two organisations across staple agriculture supply chains that include rice, cotton, and rubber in developing markets in Asia, Africa, and Latin America.
The aim is to improve the livelihoods of smallholder farmers, provide them with access to key services and inclusive opportunities; and establish sustainability and traceability across agriculture supply chains, aligning with Olam Agri’s purpose to transform food and agriculture for a more sustainable and food-secure future.
For joint projects, GIZ and Olam Agri have identified six priority intervention areas: nutrition-sensitive regenerative agriculture; harvest and post-harvest loss reduction; access to finance for smallholders; economic inclusion and rights; management of crop residues and reuse; and ecosystem services, including protection and restoration of ecosystems and carbon initiatives.
Both partners will continue to identify topics relevant across value chains and regions to drive innovation and scaling, with possible cross-sectoral issues including climate and carbon credits, landscape-scale approaches, and digitisation.
“We’ve shared a strong and fruitful relationship with GIZ over the years during which we’ve made significant inroads in transforming smallholder farming in several supply chains across many geographies to be more productive, profitable, and sustainable.
“I am thrilled to be signing this MoU with such a valuable partner that is GIZ and commit to collaborate even further to scale up our sustainability programmes in developing and emerging agriculture economies,” the co-founder of Olam Agri, Mr Sunny Verghese, said.
Also commenting, the Managing Director of GIZ, Anna Sophie Herken, said, “The signing of this MoU with Olam Agri marks a pivotal step forward in our collaborative efforts towards sustainable food production.
“I am very happy and grateful that we can deepen and broaden our cooperation efforts simultaneously. We look forward to enhancing the scope and impact of our successful projects in climate-smart farming.”
By Adedapo Adesanya
Bitcoin (BTC), the world’s best-known digital currency, reached a fresh record high of $108,943 on Monday morning as Mr Donald Trump prepared to return to the White House.
The support from Mr Trump has boosted the crypto industry and after mentioning the asset’s record performance in a Sunday speech alongside gains in the broader US stock market, the prices have been heading north.
“Since the election, the stock market has surged and small business optimism has soared a record 41 points to a 39-year high. Bitcoin has shattered one record high after another,” Mr Trump said.
Business Post reports that some other tokens making gains include Ethereum (ETH), the second most valued coin which has gained 5.9 per cent to $3,349.93, Ripple (XPR) added 6.2 per cent to sell at $3.31, and Cardano (ADA) added 3.3 per cent to $1.07.
Mr Trump, who over the weekend launched a coin, has been vocal about his support for cryptocurrencies during his campaign and promised to make the US the crypto capital of the planet and create a strategic national bitcoin reserve, moves that have fueled investor optimism.
There are hopes that new policies and regulators will send the price of BTC and by extension, other coins much further this year as the US economy continues to show strength in the long term.
BTC reversed losses from earlier in the day when it fell to nearly $100,000 from a high over $102,000 on Sunday as incoming first lady Melania Trump issued a memecoin, drawing liquidity away from major assets.
Mrs Trump followed her husband’s lead by launching a multibillion-dollar cryptocurrency meme coin – briefly tanking the price of $TRUMP coin in the process.
A meme coin is a type of cryptocurrency inspired by trends such as internet memes with no inherent utility, and are often susceptible to price swings and crashes. Meme coins have been described by traders as a pure form of gambling and akin to buying a lottery ticket.
However, some crypto enthusiasts hailed the Trump meme coin’s release, saying it was symbolic of the incoming president’s support for an industry that felt unfairly targeted by the Biden administration.
By Adedapo Adesanya
Nigeria has joined the BRICS bloc of developing economies to boost trade and investment. It is not joining as a full status member but as a partner country.
According to a statement by the Ministry of Foreign Affairs to the effect, the country was admitted as a BRICS partner country during a BRICS summit in Russia in 2024.
This marked the country’s inclusion in a partnership with 12 other nations aimed at strengthening ties with the emerging economic bloc.
As a partner, Nigeria can engage with BRICS initiatives without the formal obligations or decision-making rights that come with full membership.
Full members, on the other hand, actively shape the bloc’s policies, benefit from broader access to resources, and have a more significant role in governance.
BRICS was established in 2009 by Brazil, Russia, India, and China, with South Africa joining a year later in 2010. In 2024, the alliance expanded to include Iran, Egypt, Ethiopia, and the United Arab Emirates (UAE).
Saudi Arabia has also received an invitation but has not yet formalised its membership.
According to the Ministry of Foreign Affairs, the formal acceptance to participate as a partner country highlights Nigeria’s commitment to fostering international collaboration and leveraging economic opportunities.
The ministry also said Nigeria is focused on advancing strategic partnerships that align with its development objectives.
The ministry noted that BRICS, as a collective of major emerging economies, presents a unique platform for Nigeria to enhance trade, investment, and socio-economic cooperation with member countries.
Business Post reports that Nigeria becomes the ninth BRICS partner country, joining Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Thailand, Uganda, and Uzbekistan.
BRICS created to counterbalance the Group of Seven (G7), which consists of advanced economies. BRICS aims to amplify the influence of developing nations.
The term “BRICS” originated in the early 2000s as a label for emerging economies projected to become major global economic powers by the mid-21st century. The bloc has since evolved into a platform for addressing global economic disparities and fostering cooperation among rising economies.
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