Kazakhstan eyes Nigerian talent, agriculture, oil in new trade push

Kazakhstan has opened trade talks with Nigeria in its first official business delegation visit as it looks to tap into the country’s skilled labour force while expanding trade in agriculture, oil and gas, and fintech.

The agreement, which could signal an era of economic cooperation between the two nations, was discussed in Abuja on Sunday during a business meeting with Oba Adeyeye Ogunwusi, the Ooni of Ife, and the Nigeria-Kazakhstan Business Council.

The Ooni spoke on the importance of economic diversification, noting that Kazakhstan’s direct engagement with Nigeria would create employment opportunities for Nigerian youths, particularly in the technology sector. Kazakhstan is currently revising its visa policies to attract Nigerian talents in artificial intelligence, coding, and other tech fields.

With its small population and growing demand for skilled labour, Kazakhstan is looking beyond its traditional labour sources. Nigeria, with its booming tech ecosystem and large, youthful workforce, presents an opportunity.

The benefits will also extend to Nigeria’s agriculture sector, which has been battling high costs of doing business, particularly in cocoa exports. For Kazakhstan, diversifying its export markets could shield it from geopolitical disruptions, especially with Russia’s influence in the region.

At the same time, sourcing Nigerian agricultural products directly, instead of through European middlemen, could be cost-saving.

Read also: Nigeria seeks to diversify trade, reduce dollar dependence with BRICS

Alibek Kuantyrov, deputy minister of foreign affairs in Kazakhstan did not hide the country’s interest in investments in Nigeria’s oil and gas, agriculture, fintech, and satellite technology sectors.

In January, Kassym-Jomart Tokayev, president of Kazakhstan held talks with President Bola Ahmed Tinubu as part of the Abu Dhabi Sustainable Development Week summit (ADSW) where both presidents discussed prospects for the development of cooperation in trade, economics, transport logistics, energy, and agro-industrial sectors.

The trade-off from the discussion in Abuja is that Nigeria also gets to gain from Kazakhstan’s massive wheat and barley production. Wheat exports are a major source of foreign currency for Kazakhstan. The country’s major crops are wheat, barley, cotton and rice and it is one of the top ten grain exporters in the world, reaching over 70 countries.

“We produce some of the world’s best grain and wheat and play a key role in food security in our region,” Kuantyrov said. “We are eager to export to Nigeria while also sourcing Nigerian agricultural products directly.”

In 2021, Nigeria imported 51 percent of wheat demand from Russia, Lithuania, Latvia, and other Baltic countries.

For Nigeria, this is a chance to ease its forex strain, attract investment, and reduce dependence on wheat imports from Russia and the Baltics, which took a hit after the Ukraine war.

Abubakar Kyari, minister of agriculture and food security in Nigeria underscored Nigeria’s need for foreign investments in agriculture lauding Kazakhstan’s expertise in the sector.

The minister stated that ongoing agricultural reforms have led to a 40 percent reduction in staple food prices, hinting that more price control measures will be introduced in coming weeks.

Nigeria’s Consumer Price Index (CPI) rebasing in February saw inflation decline to 24.48 percent in January from 34.80 percent recorded in December 2024. The rebased food inflation stood at 26.08 percent in January compared with 39.84 percent recorded in the preceding month.

Subsequent meetings will finalise trade agreements as Kazakhstan has considered opening an embassy in Nigeria.

In 2023, exports from Nigeria to Kazakhstan were worth $294,000 according to the Observatory of Economic Complexity (OEC). Main export products were perfume plants, trailers and semi-trailers, not mechanically propelled vehicles, and machinery having individual functions.

Meanwhile, exports from the country to Nigeria were worth $998,000 with the main products being nitrites and nitrates, nitrogenous fertilizers, and excavation machinery. Over the past five years the exports of Nigeria to Kazakhstan have increased at an annualised rate of 42 percent and vice-versa by 100 percent.