Korea and Nigeria: Restyling partnership

By Ochiaka Ugwu

It has been established that Nigeria is a huge investment destination for most economics. Based on this reality, experts have said that the localization of investment and services in Nigerian soil itself, will open up opportunities for cooperation in these areas.

After high-level summit and series of conferences and several bilateral meetings over the past few years, Korea’s geopolitical influence has significantly risen and tremendously impacted on Africa’s economic development. Acknowledging the fact that Korea has taken pecuniary steps, re-balancing the growing complexities created, particularly, in the emerging multipolar world. Under the current global changes, Africa still attracts many foreign players and potential corporate investors expressing the desire to exploit untapped natural resources and play diverse roles in the economy, and to improve the lives of the population estimated 1.5 billion people, majority wallowing in abject poverty.

Interestingly, Korea’s influence has greatly spread in Nigeria, Africa’s most populous nation pervading and promoting Nigeria’s economic growth and advancement.

Addressing the press after one year of meritorious service, Republic of Korea (ROK) Ambassador to Nigeria, Mr. Kim Pankyu discussed and analyzed a few aspects of Korea’s engagement with Nigeria. He emphasized on issues that could seriously shape perceptions and change attitudes toward strengthening mutual relations between Korea and Nigeria.

Kim who said that relationship between Korea and Nigeria has grown significantly, informed that one of the most notable milestones was the first-ever Korea-Africa Summit which facilitated high-level discussions between the two nations’ Ministers of Foreign Affairs, Tourism, Industry and Trade.

He stated that Nigerian delegation participated in the Korea-Africa Business Summit and various forums on ICT, health, tourism, and energy which he said was a major step in strengthening Korea’s engagement with African countries, fostering inclusiveness and cooperation.

Kim said with this year marking 45th anniversary of diplomatic relations of the two nations pledged commitment to further strengthen ties with Nigeria particularly in economic cooperation, security, and people-to-people exchanges.

According to him, “Nigeria remains Korea’s most important trade and investment partner in Africa. It accounts for 10% of Korea-Africa trade, and over 70% of Korea’s project contracts in Africa.

“In 2024, our bilateral trade increased by 38.6% (thirty-eight-point six percent), reaching over 2.2 (two point two) billion US dollars, reflecting our strong economic partnership. And at the corporate level, for example, Korean biotech company SD Biosensor’s HIV rapid test kit has been approved for packaging in Nigeria by Colexa Biosensor Ltd. and Codix Pharma Group.

“This year alone, up to 15 million kits will be procured by governments across Africa and major international organizations. Looking ahead, I believe there is room for even greater cooperation in trade and investment. Both countries are working closely to conclude key agreements as early as possible.

“Double Taxation Avoidance Agreement and Trade and Investment Promotion (TIPF) MOU will mark a new chapter in our economic relations. To further expand Korean business operations in Nigeria, a favorable investment environment is essential. During the meetings, many Nigerian government officials also recognized the importance of investor-friendly policies. Measures such as preferential tariffs and tax incentives will attract more investments from Korean companies, benefiting both economies.

“With over 40 years of experience in military and security affairs, I am committed to enhancing our security collaboration. In particular, maritime security in the Gulf of Guinea is critical for both Nigeria and transit countries like the Republic of Korea. Every day, several of our merchant ships pass through the Gulf of Guinea, and around 40 of our fishing vessels, carrying hundreds of fishermen, are also operating there. We are committed to increasing Korea’s support for capacity building in the Nigerian military and security sectors.

“Additionally, we hope to finalize defense and defense industry cooperation MOUs that have been under discussion for some time. Beyond economic and security partnerships, the Korean Embassy actively supports cultural and development initiatives through KOICA and the Korean Cultural Center.

“Last month, we opened the Korea-Nigeria Information Access Center in Abuja, supporting Nigeria’s digital-capacity building efforts. I also had the pleasure of attending Korea Day event at the American International School Abuja (AISA), where students enjoyed Korean culture and cuisine. KOICA Nigeria is conducting a project to improve digital governance and multimedia learning in primary schools, worth 13 million and 10 million U.S. dollars, respectively. A larger-scale projects are to come in the next few years.

“These contributions and collaboration demonstrate the mutual trust and friendship between Korea and Nigeria. As Ambassador, I will continue working to facilitate our long-standing partnership for the years ahead” he said.

Kim stated that the high-level discussions by the two nations reflects the depth and breadth of their bilateral relationship emphasizing investments by leading Korean companies in Nigeria like Daewoo Construction and Samsung Heavy Industries that were actively in large-scale projects in Nigeria, particularly in natural gas and oil production.

He said that LG and Samsung Electronics were also making significant contributions through CSR (Corporate Social Responsibility) initiatives, such as providing solar panels and water boreholes to local communities which is strengthening mutual interests and contributing to Nigeria’s sustainable development.

He expressed hope that Nigeria as Africa’s largest economy, most populous country, and the current chair of ECOWAS holds a position of great influence and with continued collaboration with Korea, will further strengthen its leadership and potential across the continent.

Kim assured that the Korea’s foreign policy will stay the same regardless of any circumstances, and will continue to take on roles and responsibilities, noting that bilateral cooperation will continue to grow.

He said President Tinubu since inauguration, has been committed to attracting foreign investments by creating a more favorable economic environment with bilateral trade increasing by over 38% this year, “The potential for further collaboration is greater than ever”.

“The partnership will be further strengthened by the finalization of key agreements and MOUs, including the Double Taxation Avoidance Agreement and the Trade and Investment Promotion (TIPF) MOU. The Double Taxation Avoidance Agreement was passed by the Nigerian National Assembly in 2019, and we are awaiting presidential approval.

“Both countries are also reviewing the TIPF MOU, which we hope will establish a strong foundation for expanded economic and trade cooperation. We remain committed to supporting the Nigerian government’s efforts to address challenges faced by businesses, including customs clearance procedures, entry visa processing, and electricity supply.

“As Ambassador, I will continue to do my best to attract Korean investment to Nigeria and strengthen our economic ties. Nigeria is the fifth largest trading partner of Korea in Africa with a lot of trading areas to be explored.

“We saw an impressive increase of 38.6% in trade volume last year compared to the previous year. This reflects the increasing economic interconnection between the two countries”.

Moreover, Kim said Korean companies were leaders in creating quality jobs in Nigeria stating that Daewoo Engineering & Construction has played a key role in job creation, employing 5,000 to 6,000 local workers, which is nearly 20 times the number of its Korean employees.

“Samsung Heavy Industries also made significant impact during the Egina Project, employing 3,000 local workers and training 600 international welders. Solpia Nigeria, a Korean SME manufacturer of Africa’s most popular high-quality braid hair extensions, supports the local employment of over 6,000 people. Their strong commitment to local employment policies is helping to build a skilled Nigerian workforce for the future.

“The Embassy is also supporting Nigeria’s digital capacity-building efforts, including e-government initiatives and multimedia education.

“At the inauguration ceremony of the Korea-Nigeria information access center in Abuja last month, Minister Tijani of Innovation and Digital Economy, highlighted that this center will further contribute to job creation in the digital sector. He also expressed his gratitude for the Korean government’s support in establishing the center”.

Kim assured on promoting ODA programs to support Nigeria’s agriculture, including programs that help local farmers start their own businesses, informing that Korean government will continue to support a mutually beneficial environment for the two economies, ensuring continued growth and cooperation.

Notwithstanding several promises and pledges from other nations, Nigeria is bound to wake up to a common understanding of the true meaning of their partnership, and determine their own future existence.

In realty, Nigeria leaders and stakeholders have to engage in development decision-making processes, and at the same time have to play their roles as autonomous actors in context of global geopolitics.

With high anticipation for increased partnership between Korea and Nigeria that has never been stronger since inception of their bilateral relations. The anticipated change, to be facilitated by implementing bilateral agreements and engaging in more profitable ventures with Korea, provides a brimming hope and possibility that will trigger economic growth and development for Nigeria.