The economy of the European Union (EU) comprises about 449 million people and 27 Countries. The European Union has the third largest economy in the world, accounting for one-sixth of global trade. The European Union operates as a single market of 27 countries allowing the free movement of goods, services, capital, and people.
The Nigerian economy is Africa’s largest economy with a gross domestic product of $472 billion (2024), and it has remained Africa’s largest economy for the most part since 2014. Nigeria’s GDP is larger than that of 19 Countries in the EU including Denmark ($404 billion), Portugal ($287 Billion), and Finland ($300 billion), to mention a few. However, considering the size of Nigeria’s population of 233 Million people, all economic indicators suggest that the Nigerian economy needs to further expand as the GDP per capita remains relatively low. Nigeria’s large labour pool and consumer base offer considerable potential for GDP growth. Of Nigeria’s $472 billion GDP, Agriculture accounts for 21.07 percent, industry for 20.89 percent, and services for 58.04 percent.
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Nigeria’s total trade with the European Union amounted to £45 billion in 2024. The total trade volume between Nigeria and the EU has increased over the years: about 20 billion euros in 2016, 26 billion euros in 2017, and 34.4 billion in 2018. The European Union remains Nigeria’s leading trade partner, accounting for over 20 percent of Nigeria’s trade with the world.
Trade relations in particular are a crucial vessel to foster circular economy opportunities and support sustainable development in the global south. Nigeria’s major exports to the EU include Mineral products, foodstuffs and beverages, pearls and precious metals, vegetable products, raw hides and skins, and saddlery. The EU and Nigeria have collaborated in critical sectors of the Nigerian economy, including infrastructure and power, health care, and others.
Against this backdrop, Nigerian companies can leverage opportunities in Europe and vice versa. Companies can look into potential partnerships with European firms, engage in export and import activities, and take advantage of the attractive tax incentives, and varying regulations, across the EU member states. In addition, with strong links in Europe, Nigerian companies can attract financing for bankable projects in Nigeria and across Africa, as there is an increasing number of European private and public funds that are focused on Africa. Finally, in having operations or linkages in Europe, Companies can benefit from the developed infrastructure, financial institutions, and established legal and regulatory framework which the region offers. Not forgetting also the strong presence of Nigerians in the Diaspora, and Europe has one of the largest concentrations of Nigerians in the Diaspora, with a growing network of leading entrepreneurs and professionals.
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In recent times, the increasing fx inflation and slower economic growth in Nigeria has forced a lot of indigenous european firms to halt their activities in Nigeria, and this void is increasingly being filled by businesses owned by Nigerians in the Diaspora who see the situation as the opportune moment to enter the Nigerian market with their businesses without needing a lot of fx investment compared to what was obtainable before the economic crisis. There is now an increased appetite from European businesses with some diaspora interests to invest in Nigeria, and this represents an opportunity for Nigerian businesses to partner with, or provide services to such companies, on a win-win basis.
John Okoro is Co-Founder and President of Friends of Nigeria, a not-for-profit organisation headquartered in Paris. FON Europe is a leading Diaspora business and professional network in Europe, with nearly 1,000 members across France, Germany, and Belux. By 2026, FON Europe aims to expand to 10,000 members across 10 countries. It organises the Spotlight Nigeria Business and Investment Summit (7th edition) and the Nigerians in Diaspora Awards & Gala (2nd edition).
