Russia is set to renew its foreign direct investment (FDI) in Nigeria, with President Vladimir Putin indicating that the country will be intensifying its investments in Nigeria and other African nations across all sectors of the economy. Putin made this announcement at the ongoing Russia-Africa Economic and Humanitarian Forum being held in St. Petersburg, Russia.
Putin specifically mentioned iron and steel industries, petroleum refineries, industrial machinery manufacturing, and other sectors as the focal points of Russia’s investment in Nigeria. Nigeria has already been a major beneficiary of the Soviet Union’s FDIs in these areas, and with this renewed commitment, Nigeria can expect an increase in foreign investments that will aid its economic development.
Furthermore, Putin stated that Russia’s FDI into African economies would also spread into Information and Communications Technology (ICT), infrastructure, and Artificial Intelligence (AI). He expressed his belief that African economies are attractive enough to require such investments even as geopolitical tensions heighten.
Given Africa’s potential, which has attracted investments from countries such as China in recent years, Russia’s renewed interest in the continent is not surprising. According to Putin, the average annual GDP growth in Africa over the last 20 years was between 4-4.5%, higher than the world average. This explains Russia’s interest in African economies with a view to fostering stable growth and prosperity.
Putin also highlighted that in the first six months of 2023 alone, Russia’s export-import transactions with African countries increased by over one-third. He expressed his confidence in the future of trade between Russia and African countries and indicated a willingness to deepen multifaceted ties via investments in sectors such as the energy sector.
He stated: “Russia’s government, business and the public are sincerely interested in further deepening multifaceted trade, investment and humanitarian ties with the continent, which meets the needs of all our countries and promotes stable growth and prosperity”.
While adding that “Russian companies are implementing new mutually beneficial projects that aim to meet African economies’ increasing needs for fuel and generating capacities, and provide Africans with access to affordable, reliable, sustainable and eco-friendly sources of energy”.
Currently, Russian companies such as Gazprom, Rosneft, LUKOIL and Zarubezhneft are already involved in developing oil and gas fields in Algeria, Egypt, Cameroon, Nigeria and the Republic of the Congo. Putin was keen to point out that “more than 30 ambitious energy projects involving Russian companies are currently underway in 16 African countries, with a total capacity of about 3.7 gigawatts”.
Putin also mentioned that Russian companies such as RusHydro offer a vast scope of services to African partners, ranging from design and equipment supply to modernisation and construction of new turnkey power generating facilities.
Africa has remained an attractive destination for foreign investments, and Russia has now joined the ranks with its renewed commitment to invest across different sectors of the African economy. This renewed Russian interest in Nigeria’s economy is a significant boost that will support Nigeria’s growth and development efforts, particularly in the energy sector.
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