REMARKS BY MINISTER FOR TRADE AND INDUSTRY (INDUSTRY), MR S ISWARAN AT THE SIGNING OF THE NIGERIA-SINGAPORE BILATERAL INVESTMENT TREATY, 4 NOVEMBER 2016, 1430HRS
SINGAPORE BUSINESS FEDERATION, SINGAPORE
Your Excellency Dr Okechukwu Enelamah, Minister of Industry, Trade and Investment of Nigeria;
Mr Shabbir Hassanbhai, High Commissioner of Singapore to Nigeria;
Mrs Zainab Zakari Awami, Acting High Commissioner of Nigeria to Singapore;
Members of the business community,
Good afternoon.
I am pleased to be here this afternoon to welcome His Excellency Minister Enelamah to Singapore. His visit and the signing of the Investment Promotion and Protection Agreement marks a new milestone in our bilateral relations with Nigeria.
2. Our bilateral relations have grown from strength to strength. It was not too long ago in August that we signed the Nigeria-Singapore Air Services Agreement at the Africa Singapore Business Forum. These agreements reflect the strong desire of both governments and business communities to broaden and deepen the economic ties between our countries, particularly in trade and investment.
3. Nigeria has consistently been one of Singapore’s top trading partners and investment destinations in Sub-Saharan Africa. Singapore’s Direct Investment Aboard into Nigeria was S$2.3 billion in 2014. It has grown at a Compound Annual Growth Rate of 26.4% from 2008 to 2014. Our bilateral trade in goods reached S$311 million in 2015. There is potential for trade and investment to grow.
4. Nigeria’s importance in Sub-Saharan Africa is undeniable. Nigeria is the largest economy and the most populous country in the region. While Nigeria’s near term economic outlook may be challenging because of the low oil prices and foreign currency shortage, we should acknowledge that Nigeria’s GDP has grown by an average of 6% over the past half-decade. The country can build on past momentum and benefit from greater consumption within West Africa as well as manufacturing production. As Nigeria continues on the path to improve the ease of doing business, this would attract more investors to growth areas in the agribusiness and manufacturing sectors.
5. The country’s potential is not new to our companies who have been operating in Nigeria for a long time. Long term partnerships have been forged in sectors where Singapore’s expertise coincides with Nigeria’s needs. Tolaram is one of Nigeria’s leading food manufacturers and is developing a port and Free Trade Zone in Lagos. Companies are also not just investing in the “hardware”, they are investing in the “software” of Nigeria’s future. Nigeria’s growth will be enhanced with a ready pool of skilled workforce. It is the quality of manpower that will shape the quality of the country’s industrial growth. Notably, ITE Education Services has partnered the Nasarawa State to upgrade skills centres and also assisted in the development of a Model Skills Training Centre in Abuja.
6. I hope more Singapore companies will follow in these footsteps and contribute to Nigeria’s growth story. The Singapore Business Federation has organized four business missions to Nigeria, as well as business roundtables, including one that will take place this afternoon. These efforts will encourage more companies to explore the many opportunities Nigeria has to offer. I am pleased that we are joined today by Singapore companies that do business in areas as diverse as oil and gas, water treatment, agribusiness and education.
7. The agreement that we are about to sign will support this growing interest. With the Investment Promotion and Protection Agreement, Singapore companies operating in Nigeria will enjoy protection on top of that already accorded under the country’s domestic laws. As we progress in this partnership with Nigeria, and more broadly with Sub-Saharan Africa, we will continue to strengthen our network of agreements with the region to support our companies as they explore opportunities in these markets. Our business ties can only grow further and I am confident we will hear of more successful Nigeria-Singapore business partnerships in the future.
8. In closing, I would like to thank Minister Enelamah for your strong support for the agreement and your interest in deepening economic relations with Singapore. I look forward to working closely with you and your colleagues to take our economic relationship to greater heights.