Name: Nico Marfels
Organisation: German-African Business Association
Position: Regional Manager West and Central Africa
1) Give us some examples of German companies who have successfully invested in Nigeria.
The best and most well-known example of a German commitment in Nigeria is the long-lasting engagement of Julius Berger who today is one of the biggest employers in the country. Other German companies that are operating in Nigeria are Siemens, Commerzbank, Deutsche Bank and Lahmeyer International – just to name a few. Hundreds of German companies are already exporting their products to Nigeria. The country is among the most important partner countries for Germany in Sub-Saharan Africa with total trade volume second only to South Africa.
2) Which sectors in Nigeria hold the most potential for foreign investment?
First and foremost, energy, and especially the electricity sector. German companies have already entered into dialogue with the Nigerian Government to identify how they can bring in their world-class expertise into expanding the electricity generating and distribution capacity of Nigeria. Other sectors of interest to German businesses are infrastructure, machinery, vehicles, chemicals/pharmaceuticals, other consumables and banking.
3) Why do you think Nigeria is a promising investment location?
Though still suffering from inefficiencies and intransparencies, the Nigerian economy comprises a population of 140 million and therefore is the biggest domestic market in the Sub-Saharan region. Nigeria has recently undergone debt relief and is now a net creditor country. Its international credit ranking has improved, the economy is growing outside the oil sector and Nigerians are relatively well educated. Bottlenecks in infrastructure, and especially power supply, may prove a hindrance for investment but at the same time are an incentive for investment in these sectors.
4) What are the main products traded between Germany and Nigeria?
German exports predominantly consist of new and used machinery, vehicles, spare parts, chemicals and consumables. Goods imported from Nigeria comprise mainly of oil and petrochemical products. In our view there is room to significantly increase the bilateral trade volume if only the potentials would be fully tapped.
5) Describe your feelings about the Niger-Delta crisis.
The crisis in the Delta is an impediment to the country's reputation. Activities of Julius Berger have already suffered from the situation. The Nigerian Government has to resolve the crisis as quickly and comprehensively as possible to prevent further negative spill-over effects to the otherwise positive business climate in the rest of the country.
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