Tehran hosting 6th Iran-Nigeria Joint Economic Committee meeting

June 7, 2022 - 14:44

TEHRAN - The sixth meeting of the Iran-Nigeria Joint Economic Committee is being held in Tehran from June 6 to 9, during which senior officials of the two countries are scheduled to sign numerous economic and trade agreements.

A high-ranking delegation from Nigeria, headed by the country’s Foreign Minister Zubairu Dada, has traveled to Tehran to participate in this event which is held after a seven-year hiatus, IRIB reported.

With a population of more than 220 million, Nigeria is the most populous country in Africa. The country’s gross domestic product exceeded $430 billion in 2021, making it Africa's largest economy.

Nigeria is Iran's third-largest trading partner in Africa, however, considering the friendly relations between Tehran and Abuja and the two countries' great potential the level of bilateral trade is not favorable.

According to Iranian Industry, Mining and Trade Ministry data, the value of trade between the two countries increased from $5 million in 2019 to $18 million in 2020 and to more than $130 million in 2021.

Despite a 26-fold increase, the level of trade between Tehran and Abuja is still unsatisfactory and could be much higher.

Transportation is one of the most important obstacles to Iran's trade with African countries, and to this end, the Islamic Republic of Iran has already begun talks with Nigeria to resolve this issue and the two sides hope that the first Tehran-Abuja flight will be established in the next few months. Both sides are also considering establishing a shipping line between the two countries.

Nigeria is a large economy with vast oil and mineral resources and extensive agriculture, and its problem today is a lack of infrastructure and skilled manpower, especially in areas like energy and technology. If diplomatic relations between Iran and Nigeria continue to expand and more attention is paid to trade development, Nigeria could become a great market for Iranian companies in a variety of fields, from the petrochemical industry to the food industry. It could also act as a regional hub to facilitate trade between Iran and West African countries.

EF/MA

Leave a Comment

0 + 0 =