Officials of the Federal Government are in talks with their South Korean counterparts on how to reverse the dwindling trade between the two nations.
Visiting South Korean First Vice Foreign Minister Mr. Choi Jong-gun held high-level meetings with Ministers Maj. Gen. Bashir Magashi (Defence); Mr. Rotimi Amaechi (Transportation) and the Minister of State for Foreign Affairs, Ambassador Zubairu Dada.
A statement issued by the Transportation Minister said Mr. Jong-gun was in Nigeria as part of a tour of three African countries – Morocco and Senegal. The three-nation tour began on August 14.
It was the Korean official’s maiden visit to West Africa.
The statement noted that in a series of engagements with the Nigerian officials on August 19, the discussions focused on how to develop bilateral relations, including cooperation on maritime security in the Gulf of Guinea.
The two sides agreed to further expand economic cooperation while agreeing that there is a great potential for cooperation between Korea, which has technological prowess, and Nigeria, which has population and resources.
The statement reads: “During the sessions, both sides agreed on the need to reorganise all agreements, such as the double taxation prevention agreement and the revision of the investment protection agreement, under the common recognition that it is important to prepare an institutional basis for expanding economic cooperation.”
It said the Korean official stressed the importance of conducting business in a friendly environment by resolving the difficulties faced by Korean companies that have invested in Nigeria.
On his part, Amaechi pledged to resolve the outstanding issues.
He was quoted as saying: “Despite the huge investments made into the country over the past decades, Nigeria is yet to benefit from the global conglomerates’ skills and technology transfer as well as the foreign investors’ huge investment potential because the government has not given all the necessary incentives and support to these companies already in the country.
“The issues faced by foreign investors in Nigeria is not just limited to Korean companies- for instance, Africa’s biggest grocery retailer and South Africa-owned chain of stores, Shoprite announced its exit from Nigeria after 15 years of operations.”
In April, Industry, Trade & Investment Minister Otunba Niyi Adebayo lamented that trade between both countries had slumped by 74 per cent from $5 million in 2018 to $1.3 million in 2019.
Adebayo, who spoke when he received the South Korean Ambassador to Nigeria, Mr. Kim Young-Chae, noted that both countries had shared strong economic and investment ties with over 20 Korean companies, including Samsung Heavy Industries and Hyundai Heavy Industries, presently operating in the country.
It is expected that South Korean First Vice Foreign minister’s visit will spur the Federal Goveral Government to address the challenges of South Korean firms in the country.
Samsung Heavy Industries (SHI) is one of the global conglomerates and reputable investors from South Korea that have established a strong presence in Nigeria. SHI established its subsidiary, Samsung Heavy Industries Nigeria Limited (SHIN) 10 years ago and made an investment of over $300 million in Nigeria to construct West Africa’s most advanced fabrication and integration yard.
The statement said: “The company has made tremendous contributions to the Nigerian economy since its establishment.
“It has contributed significantly in creating jobs, helping Nigerians to acquire skills and opening up the Nigerian economy.
“Through Egina project, Samsung Heavy Industries Nigeria employed over 3,000 Nigerians and spent 560,000 man-hours training locals with no prior experience in shipbuilding and welding industry. It is widely known that over $1.6 billion economic contribution was made through the project,” the statement explained.
It, however, added that the past 10 years have not been a smooth sail for SHIN as the company was not insulated from the challenges in the local operating environment.
It said: “Despite the challenges facing its operations, SHIN has remained undaunted due to its faith in Nigeria and its long-term commitment to the country.
“Commendably, the Nigerian Ports Authority (NPA) granted a direct lease to SHIN for the SHI-MCI yard in Tarkwa Bay Lagos.
Both countries also discussed the need for an enabling environment for investors by guaranteeing their investments and operation in the country for at least 20-30 years.
”This will enable Nigeria to take a big leap forward in technological advancement and social development industry training and skill (technology) transfer”, the statement added.
The two countries agreed to hold the sixth Korea-Nigeria Joint Committee in Korea in the near future to discuss issues of common interest.
The statement further reads: “In addition, the two sides decided to continue high-level exchanges by taking advantage of opportunities such as the UN Peacekeeping Ministers’ Meeting to be held in Seoul in December 2021 and the Korea-Africa Forum.
“In view of the peculiar challenges facing Samsung Heavy Industries Nigeria in its operational base in Lagos, which has become protracted, the company needs urgent support from the Federal Government agencies.
“The Federal Government and Ministry of Transport should endeavour to make the necessary efforts to protect the foreign investor and restore confidence to the Korean Government.
“With the visit of the South Korean First Vice Foreign minister to Nigeria, it is expected that the Nigerian government will address the challenges facing the South Korean companies operating in Nigeria. Industry Experts and stakeholders will be hoping for swift actions from the government to implement these protectionist measures for the benefit of the nation.”
