In their trade relations with Nigeria, the economies of Belgium and Luxembourg have seen a remarkable evolution over the years. From a predominantly extractive and commodity-based trade model, there is now a shift to a more diversified and investment-driven partnership. We underscore three main clusters of evolution. First is the early trade era. This was followed by the expansion and diversification era, culminating in the era of consolidation and growth.
The Early Trade Era, which could equally be classified as the Pre-2000s trade model, was dominated by mineral and commodity trade. Given that Nigeria remained a key exporter of energy resources, Belgium and Luxembourg historically engaged with the economy through the importation of crude oil and mineral products. During those early years, the foundation stones for basic manufacturing and consumer goods were equally laid. Belgium, in particular, exported industrial equipment, chemicals, and consumer goods to Nigeria.
Decade of expansion and diversification: The 2000s – 2010s saw an upsurge in infrastructure and maritime investments. Belgian companies, particularly in dredging, maritime services, and port management, expanded their footprint in Nigeria during this decade. More than any period, this era can rightfully be credited with the birth of a deeper person-to-person relationship between Belgium and Nigeria. When the two giants of Jan De Nul and Deme Group became involved in major dredging and port development projects in Nigeria, it was not envisaged that the young men they sent to the field would also find love there. But that was exactly what happened. Intermarriages between Belgian workers and Nigerian ladies were one of the unintended positive consequences of the trade relations. This increased the vested interest dynamics. Over the next decades, offspring of these relationships may carry on to be the unofficial trade ambassadors of these economies.
Growth of agricultural investments and pharmaceuticals is another hallmark of the 2000s. Presco plc, a subsidiary of Siat s.a., a Belgian agro-industrial company, has been a dominant player in smallholder plantations of tree crops, mainly palm oil and rubber, and allied processing industries like palm oil mills, refining, soap making, and crumb rubber factories. Similarly, SOCFIN Group, a Luxembourg-listed holding company, increased its presence in Nigeria’s palm oil and rubber industry, managing significant plantation operations. So too was pharmaceutical and medical sector growth as Belgium became a major supplier of pharmaceuticals. Initiatives to establish messenger ribonucleic acid, or mRNA for short, in vaccine production in Nigeria is another area of engagement. There is also the expanded use of dialysis machines, reflecting a commitment to future-proof and diverse investments. The use of trade missions as a policy tool to interface with business people was accentuated during this era. Business forums are strengthening bilateral cooperation, facilitating direct investments and partnerships.
The post-COVID era marks a defining period with sustainable trade. Belgium stands as the European Union’s largest exporter to Nigeria, underscoring its pivotal role in the bilateral trade landscape. The EU’s wheat trade pivot has seen Nigeria emerge as a major buyer due to shifting export patterns. It is notable that diversification is an intentional trend. While mineral products, particularly crude oil, have traditionally dominated trade, there is a concerted effort to diversify. Belgian investments in Nigeria have been expanding into construction, transport and logistics, food and beverages, port and maritime services, dredging, and fisheries.
Read also: The promise of clean energy for Nigeria
Investment trends for Belgium and Luxembourg investors in Nigeria 2025 – 2035
As Belgium and Luxembourg deepen economic ties with Nigeria, it is recommended that investors focus on emerging high-growth sectors that align with Nigeria’s economic diversification agenda of the last decade, regulatory shifts, and technological advancements. A seven-point investment agenda are trends to watch for the next decade.
1. Clean energy and renewable investments
A gradual shift from fossil fuels to renewables, one that takes the Nigerian idiosyncrasies into consideration, is recommended. Belgium’s stricter fuel export regulations signal a move toward cleaner energy solutions. In this regard, in September 2024, Belgium implemented stricter regulations on fuel exports. This essentially limits the permitted sulphur content to 50 parts per million. The move, aligning with similar Dutch regulations, led to a significant reduction in gasoline exports from the Amsterdam-Rotterdam-Antwerp (ARA) hub to West Africa, including Nigeria. This appears to be compensated by the increasing investments in solar, wind, and hydro projects, presenting opportunities for Belgian and Luxembourg firms in renewable energy infrastructure. Partnerships with Nigerian stakeholders in off-grid solar solutions can help bridge the country’s energy deficit. Linked to this is Hydrogen & Green Fuel Technologies. As Europe pushes for green hydrogen, Belgian and Luxembourg firms can explore hydrogen production, storage, and export solutions in Nigeria.
2. Agricultural innovation and agribusiness expansion
Agro-processing and food export are set to be lucrative sectors to watch. With the EU shifting wheat exports westward, Nigeria’s demand for food processing technology is rising. Belgian expertise in agribusiness logistics, food storage, and mechanisation can support Nigeria’s push for food security and export diversification. The foundation for Palm Oil and Rubber Investments has long been laid by actors like Luxembourg-based SOCFIN Group and Belgium-based Siat s.a. Other Belgian agribusiness firms should continue investing in sustainable palm oil and rubber plantations, leveraging Nigeria’s raw material base. Agri-tech & Smart Farming is poised to receive a boost in this decade of opportunities. Precision farming, irrigation systems, and biotech are crucial for boosting Nigeria’s agricultural productivity. This is where investment in AI-driven farming solutions and blockchain traceability comes in. The potential to enhance Nigeria’s export credibility in EU markets is juicy.
3. Infrastructure and maritime development
Seaport and logistics expansion beckons in Nigeria in the next decade more than ever before. With Jan De Nul and DEME Group, Belgium already has a domineering presence in Nigeria’s dredging, port management, and logistics. The next decade is likely to see operational expansion in Nigeria’s growing port infrastructure. Lekki Port, as a critical deep-sea port and inland container depot, will need foreign expertise. The decade up to 2035 should go down in the history of Nigeria for smart logistics and warehousing solutions, powered by Belgian investment in AI-driven logistics hubs and warehouse automation. This should help solve supply chain inefficiencies in Nigeria. As Nigeria seeks private sector involvement in road, railway, and airport expansions, Belgian and Luxembourg investors can participate in Public-Private Partnerships (PPPs) projects.
4. Digital economy and fintech expansion
Being Africa’s financial technology leader, Nigeria, with companies like Flutterwave and Paystack, is attracting global investment and will attract more. Luxembourg’s strong financial sector can explore joint fintech ventures, payment processing innovations, and digital banking solutions. Linked to that is blockchain & cybersecurity. With Nigeria adopting blockchain regulation, Belgian and Luxembourg firms can introduce secure digital ID systems, e-governance solutions, and financial inclusion technologies. Nigeria’s growing e-commerce market, represented by Jumia, Konga, and others, is a space that Belgian tech companies can tap into by offering AI-driven logistics, digital marketing, and automation services.
5. Health, pharmaceuticals and biotech
The decade up to 2035 might be a defining decade for Nigeria in its stride towards reducing dependence on imported medicine. Belgium’s strong biotech and pharmaceutical industry can invest in messenger ribonucleic acid, or mRNA, vaccine production, dialysis equipment, and medical supply chain innovations. Luxembourg’s digital health companies can introduce AI-powered diagnostic tools, mobile health apps, and telemedicine platforms. At the same time, Belgian firms like Protex Healthcare can step up partnerships with Nigerian hospitals and healthcare providers to develop modern medical facilities and specialised treatment centres.
6. Mining, rare earths and battery materials
Nigeria holds untapped reserves of lithium, cobalt, and rare earth minerals. This is critical for electric vehicle (EV) battery production and supply chain. This offers potential for Belgian and Luxembourg firms in battery technology and sustainable mining. They can secure early stakes in this sector. Similarly, investment in eco-friendly mining technologies can help Nigeria meet EU sustainability standards, enhancing exports to Europe and other markets.
7. Smart cities and real estate development
Lagos and Abuja are arguably the fastest-expanding technology hubs in sub-Saharan Africa with smart city initiatives and real estate developments. Belgian firms specialising in urban planning, green architecture, and smart energy grids can contribute to these projects. Not unimportant is the housing deficit that Nigeria is facing. Modular housing solutions and sustainable construction materials will be high-demand investment areas for builders from Belgium and Luxembourg.
Strategic outlook and business forum growth
Belgium, Luxembourg, and Nigerian investors who focus on sustainable trade, regulatory compliance, and leveraging EU-Africa partnerships are the ones that will maximise business opportunities in these economies over the next decade. With trade dynamics between Belgium, Luxembourg, and Africa, particularly Nigeria, evolving towards diversification and sustainable partnerships, the development of deal breaking tools in the form of business forums appears to be a logical outcome. By leveraging private sector trade facilitation platforms like the Nigeria Belgium Luxembourg Business Forum or government agencies like Flanders Investment & Trade, Walloon Export & Foreign Investment Agency, and Luxembourg Trade & Invest and aligning with regulatory changes, these economies aim to enhance economic cooperation, address challenges, and explore new opportunities in various sectors beyond traditional mineral products.
Collins Nweke is a former Green Councillor at Ostend City Council, Belgium, where he served three consecutive terms until December 2024. He is a Fellow of both the Chartered Institute of Public Management of Nigeria and the Institute of Management Consultants. He is also a Distinguished Fellow of the International Association of Research Scholars and Administrators, where he serves on its Governing Council. He writes from Brussels, Belgium. X: @collinsnweke E: [email protected] W: www.collinsnweke.eu
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