Bilateral Trade and Investment

Thailand and Nigeria are strategic partners in bilateral trade, with an approximate value of USD 1.2 billion in 2021. Thailand's exports to Nigeria include high-quality rice, rubber, plastics, sugar, canned fish, and electrical appliances, while Nigeria's exports to Thailand consist of crude oil, cocoa beans, cashew nuts, and sesame seeds.

According to the Thai Ministry of Commerce, Nigeria is Thailand's 4th largest trading partner in Africa. Nigeria exported around USD 1.1 billion worth of goods to Thailand in 2020. Thailand exported around USD 550 million to Nigeria in 2021. Both countries have also agreed to strengthen their cooperation in other areas, such as energy and renewable energy, mining, and agriculture.

On the 60th anniversary of the establishment of bilateral diplomatic relations in 2022, both countries also established several frameworks and mechanisms to promote cooperation, such as the Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion, the Agreement on Trade Promotion and Economic Cooperation, and the Memorandum of Understanding on Cooperation in Science and Technology.

Further economic relations were solidified during the THAIFEX-ANUGA ASIA 2023 food expo in May 2023. Mr. Suphat Saranoi, Director of the Office of Overseas Trade Promotion in Abuja, and Mr. Pawat Ruangwichithorn, Advisor, Royal Thai Embassy in Abuja, led a delegation of 42 businessmen from Nigeria and Ghana’s food industry to visit a food expo. The delegation engaged in business matching sessions, resulting in trade volume worth approximately 7.7 million baht and expected additional orders of around 470 million baht within a year. The most sought-after products were beverages, nutritional supplements, rice, and processed foods.

Bilateral investment between Thailand and Nigeria has grown steadily in recent years as both countries seek to diversify their economies and expand their trade relations. According to the World Bank in the year 2020,

• Thailand invested USD 1.2 billion in agriculture, manufacturing, and energy sectors.

• Nigeria invested USD 800 million in tourism, education, and health.

There are numerous opportunities for future investment with some room for improvement. Political instability, security risks, infrastructure gaps, and regulatory barriers are some of the factors that hinder the investment climate. Some news headlines over recent years in Thailand regarding the potential of scamming tactics and fraud have raised concerns affecting businesses and investors' confidence in business engagement between both borders.

To overcome these obstacles and capita lize on these advantages, both countries need to enhance their dialogue and cooperation mechanisms and provide more information and support for their investors, such as market research, legal advice, and financial incentives. To boost investor confidence, there are opportunities for businesses to develop long-lasting partnerships in Thailand, showing professionalism and integrity to the interested Thai business and investors to invest in Nigeria.

Coiled by a “great old friend of Thailand,” Mr. Prasom Fangtong, former director of the African Affairs Division and Charge d’Affaires in Abuja, Nigeria, there are numerous opportunities for trade and investment waiting to be discovered. In 2020, Mr. Prasom was the first to bring the Nigerian government’s trade and investment office to discuss the bilateral relationship between the two countries.

By Mr. Sarawut Thiramanit, Dr. Prachaya Suwanhirunkul

Enterprise Thailand