The Federal Government of Nigeria has cleared a backlog of debts amounting to $850 million owed to European airlines.
This development was announced by Samuela Isopi, the European Union Ambassador to Nigeria and the Economic Community of West African States (ECOWAS), during the 9th edition of the Nigeria – EU Business Forum held in Abuja on Tuesday.
Ambassador Isopi praised the Nigerian government for its decisive intervention in resolving the debt issue, which had long been a point of contention between Nigeria and European carriers.
The repayment is expected to foster better relations and trust between Nigeria and European airlines, potentially leading to enhanced air travel connectivity and economic cooperation.
In addition to addressing the debt, the Nigerian government has also removed foreign exchange restrictions on the importation of forty-three items.
This policy shift is seen as a step towards liberalizing the economy and making it more attractive for foreign investments.
The move has been lauded by various stakeholders as it is expected to ease business operations and improve the overall economic landscape of the country.
“Nigeria remains the EU’s largest trading partner in Africa, with trade relations amounting to approximately 35 billion Euros last year,” Isopi noted.
She also highlighted Nigeria’s status as the EU’s biggest foreign investor on the continent, with a stock estimated at 26 billion Euros, which constitutes one-third of Nigeria’s foreign direct investment.
Over 230 EU companies currently operate in Nigeria, providing substantial employment opportunities for the youth and women, thereby contributing to the nation’s economic growth.
Themed ‘Investing in Jobs and Sustainable Future,’ the forum was attended by prominent figures, including Myriam Ferran, the Director General at the EU; Atiku Bagudu, the Minister of Budget and National Planning; and Nura Rimi, the Permanent Secretary at the Ministry of Industry, Trade and Investment.
The event served as a platform for dialogue between the public and private sectors, underscoring the role of government in supporting businesses to achieve inclusive development.
The forum’s discussions centered on enhancing investment in Nigeria, fostering sustainable economic growth, and creating jobs.
The stakeholders emphasized the importance of robust economic policies and the need for continued collaboration between Nigeria and the EU to achieve shared economic objectives.
The repayment of the $850 million debt is expected to bolster Nigeria’s reputation as a reliable partner in international trade and finance, paving the way for future investments and stronger economic ties with European nations.
This development marks a significant milestone in Nigeria’s efforts to stabilize its economy and create a conducive environment for business growth and development.