Nigeria-Japan Economic Relations
Nigeria and Japan are two great nations which play prominent roles at the international scene. Though Nigeria is a developing country and Japan is a developed and highly industrialised, both have a lot to gain from their economic relations.
Japan and Nigeria engage in strong economic and political cooperation and established formal diplomatic relations in 1960, immediately after Nigeria’s independence. They have been involved in various bilateral economic activities ever since Nigeria’s independence.
Japan has a lot to gain from Nigeria because it is the largest economy in Africa as evidenced by the recent rebased figures. It has immense potential that are yet to be exploited. Nigeria is an oil producing country and considering the high level of energy consumed by Japan and its technology, Nigeria is of high economic importance to Japan. Nigeria also has a good environment for foreign direct investment, and sales of technological equipment. These are very beneficial to the Japanese economy. However, compared to what Nigeria stands to gain from Japan, these advantages are few. But considering the grants, loans, aids, technology, technological know-how, direct investment and high trade relations that Nigeria gains from Japan, it can be said that economic relations with Japan is advantageous.
A diplomat in the Nigerian embassy of Japan described the relationship that exists between Nigeria and Japan on the political and economic fronts is cordial. He went further to say that the nature of economic relations between the two countries is substantive and balanced with both sides benefitting from the relations. According to him, Japan is a major buyer of Nigeria’s oil and gas while Nigeria is an importer of Japanese technology, machineries, vehicles, chemicals, etc. To him, the interest of both countries for one another could be deduced from the huge business potential, population, and large economies of the two countries. This diplomat referred to the Nigerian economy as possessing fast growing middle class with high purchasing power, over 100 million consumers, huge mineral resources, water resources, etc. And Japan on the other hand possesses all the cutting edge technology needed by Africa’s largest economy.
Some diplomats in the Japanese embassy of Nigeria were of the view that both countries have something to gain from each other, most especially economically. Japan imports natural gas from Nigeria and this is an energy resource apart from oil which is also an energy resource imported from Nigeria to Japan. Besides, Japan also imports other Nigerian resources such as sesame oil, cashew nuts, cocoa, aluminum, alloy and many others. To them Japanese interest in Nigeria is also as a result of the vast market opportunities available in Nigeria. Nigeria also has a lot to gain from Japan’s imports. These products include tyre, chemicals, iron and steel, electronics, transportation machineries and many others. Also Japan’s foreign direct investment in Nigeria is also of great interest as it has improved the economy of the country, for example the foreign direct investment of Nissan vehicle company in the country.
In essence, Nigeria and Japan economic relations should be held with high regards. Individuals, organisations and the government of both countries need to focus more on these benefits that can be got from these relations and attempt or make efforts to improve on them.