German chancellor, Angela Merkel, met with Nigerian president, Goodluck Jonathan July 14, in Abuja, Nigeria. The two leaders agreed to expand bilateral cooperation, particularly regarding energy.
Trade between Germany, Europe’s biggest economy, and Nigeria, Africa’s top oil producer and most populous country, reached 2.5 billion Euros ($3.5 billion) in 2010, according to the German-Nigerian Business Association. While Nigeria’s main export is crude oil, imports from Germany include machinery and other industrial goods.
In October 2010, President Goodluck Jonathan launched an initiative to attract foreign investors to Nigeria in a bid to boost electricity production in the world's eighth largest oil exporter and Africa's most populous nation. The West African nation of 150 million people, which produces less than 4000 megawatt of electricity, is plagued by daily outages blamed on mismanagement and corruption. Jonathan, who has promised to make improved power supply a key item on his program, plans to privatize electricity generation and distribution, and boost natural gas availability to fire new plants.
Though some are wary of foreign investment in African nations (especially by wealthy western nations), a joint agreement such as this, where both parties are set to gain, should be one desired by other African nations dealing with foreign investors.
In an emerging market such as that of Nigeria, it is satisfying to see the president making it a point to use the country’s position to address the everyday needs of the people.
Source: http://www.iol.co.za/news/africa/merkel-arrives-in-nigeria-1.1098989
Photo: Finfacts.ie
