July 28, 2023

Russia to renew direct investment in Nigeria, others

Russia to renew direct investment in Nigeria, others

By Emeka Anaeto, Business Editor in St. Petersburg

There are indications that Russia will be pushing for revival of its foreign direct investment, FDIs, in Nigeria and other African nations across every sector of the economy.

President of Russia, Vladimir Putin, gave this indication at the first plenary session with heads of governments of African nations at the ongoing Russia-Africa Economic and Humanitarian Forum holding in St. Petersburg, Russia.

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According to him Russia is set to renew the direct investment model for which its government under the Soviet Union was known for across sectors of the third world economies.

He named the sectors to include iron and steel industries, petroleum refineries, industrial machinery manufacturing amongst others.

Nigeria has been one of the major beneficiaries of the Soviet Union’s FDIs in these areas.

Putin also told the heads of governments that the Russia’s FDI into Africa economies will spread into Information and Communications Technology, infrastructure and Artificial Intelligence (AI).

He expressed his belief that African economies are attractive enough to require such investments, against the backdrop of increasing geopolitical tensions.

He stated: “Africa’s potential is obvious to everyone. For example, the average annual GDP growth on the continent in the past 20 years was 4–4.5 percent, which exceeds the world’s average.

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.

“I have no doubt that by working together we will be able to increase our trade substantially in the near future.

“Incidentally, in the first six months of 2023 alone, our export-import transactions with African countries increased by over one third.

“We are also interested in further developing cooperation with African countries in the energy sector.

“Currently, 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.

“More than 30 ambitious energy projects that involve Russian companies are now underway to varying extent in 16 African countries, with a total capacity of about 3.7 gigawatts.

“Russia’s RusHydro offers a vast scope of services to African partners, ranging from design and equipment supply to modernisation and construction of new turnkey power generating facilities.

“Russian companies Gazprom, Rosneft, LUKOIL and Zarubezhneft are involved in developing oil and gas fields in Algeria, Egypt, Cameroon, Nigeria and the Republic of the Congo.”