February 13, (THEWILL) – Chief Executive Officer, Giessen Chamber of Commerce and Industry of Germany, Dr Mathias Leder, has urged the Nigerian government to improve on the productivity of labour, capital, and innovation to ensure a balance of trade between the country and Germany for economic growth
He made the call on Tuesday at the 2025 Gateway International Trade Fair, organised by the Ogun State Chambers of Commerce, Industry, Mines and Agriculture (OGUNCCIMA), held at the MKO Abiola Trade Fair Complex, Oke-Mosan, Abeokuta, the Ogun State capital.
The theme for this year’s fair is “Promoting Businesses through Partnerships”.
Leder, who lamented the international trade imbalance between Germany and Africa, stating that Africa’s share of Germany’s total trade volume stands at a mere 2%, while Nigerian shares of the trade volume are 1%, insisted that it was high time the Giant of Africa considered improving on the three factors to create a trade balancing between the two countries.
He also expressed concern over Germany’s trade with Nigeria compared to Brazil and the Republic of China, saying that the reason why China was able to do that in Africa, particularly Nigeria, in the last 20 years more than Europe was because it invested in infrastructure, rail, ports, telecommunications, among others.
The CEO of the Giessen Chamber of Commerce and Industry of Commerce identified dual vacation training for legal migration as one of the means the Nigerian Government could improve its labour factor and its productivity, especially in the area of IT, where migrants could earn a job equivalent to N5m monthly.
He said, “The balance of trade between Germany and Africa compared to Brazil and the Republic of China is very uneven. Though Germany does a lot of trading with Brazil and China, its volume of international trade with Africa is 2% out of which Nigeria is less than 1% and my dream is to see that the trade between Germany and Africa grows.”
“What can we do to change the situation? International trade has always been a cornerstone of prosperity and development and there are several reasons why we have international trade. International trade arises because we don’t have some resources in the importing countries.
“For instance, we don’t have oil and gold in Germany. China’s investment in the last 20 years in Africa is much more than that of Europe. They invested in infrastructure, rail, ports, telecommunications and so on. To change the narrative of the trade imbalance that Nigeria is having with Germany, you can improve the productivity of labour, you can improve the productivity of capital and innovation.
“We have this project called dual vocation training, which means to improve the factor labour. These people received excellent practical training, and they easily find jobs in Europe and in Germany because the training includes working in a company for three days and spending two days in a vocational training school. These people who participated in the dual training are better off in the company where they work because they get to see their clients hailing their work.
“So, dual vocational training is one means of improving productivity. Also, legal migration can improve the productivity of the country because these people who migrate to Germany get training there and they get a monthly payment that is equivalent to N5m and it can even be double depending on the training and where you work, for instance, if you work in the IT sector and this is the second project that we have carried out last week.
“To improve the productivity of capital is important. It is also not easy for small and medium businesses to get loans in this country because the interest rate is too high, about 20%. The leadership of the Oguncima has been trying to do something to strengthen the cooperative economy and cooperative banking in such a way that the interest rate for loans will not be more than 6%, such that small and medium business enterprises can afford it.
“One other thing we are also providing is innovation and this we do by creating a platform for the companies to meet such is our international conference coming up from May 20 to 22 which provides the opportunity for the companies across the globe to come together and access innovation that could help lift up their companies”, he said
The Former Minister of Information and Culture in Nigeria, Alhaji Lai Mohammed, said that one of the ways Nigeria could get out of its economic woes was to engage in local production and refrain from exporting raw materials so that the country can have good export markets that meet international standards
Mohammed urged small business owners in the country to participate in cooperative banking like ‘esusu’ to save their businesses in the face of the harsh economy while appreciating Ogunccima’s support for Small and medium-scale enterprises in the state
He said, “The federal government is on the right path. We should refrain from exporting our raw materials; we must add value to our raw materials, and then we shall be able to have good export markets. We must take advantage of the regulatory bodies to meet up with the standard. Luckily, Afrexim Bank has set up a place here in Ogun State where you can go and check the standard of your products to know if they are fit for export. Rather than exporting our cocoa and our gold, we need to set up factories that can help processing to give them more value before they are exported.
“Talking about the high interest rates, the way out is cooperative banking, it is like the esusu system that our forefathers used to make use of in the past. In this kind of arrangement, about 20 to 40 people who belong to the same industry can come together and begin to make contributions, which one of them takes by month end until it goes round and the interest rate is not more than 6%, cooperative banking is the way to go”, he noted.
The National President of Nigeria Chambers of Commerce, Industry, Mines and Agriculture Otunba Dele Oye said that NACCIMA was already partnering with Germany to import some machines for agro-processing as well as training entrepreneurs at German company’s skilling centres to increase productivity
“We are already partnering with Germany to import some of their machines for agro-processing because once you process your goods, the value you get is usually five times the 1% you will have without processing. And if you have like 60% of Funds for the machines you are importing, the German-Exim Bank can finance the rest which you will pay over a period of 10 to 15 years.
“Skilling, most of the entrepreneurs need training, so we are working with them, the Germans to have a skilling centre, train in those big companies and come back here, set up a business for yourself instead of Japa. So we are really collaborating with the Germans to increase skilling, productivity, transfer of technology”, he stated.
The President of Odua Chambers of Commerce and Industries, Alhaji Wasiu Olaleye, said that the trade fair would serve as linkages between Micro, Small and medium-scale enterprises (MSMEs) and companies and as well build contacts for business partnerships and operations
“As we are having MSMEs around, what we are trying to create is the linkage. We are trying to bridge the gap. When you have Dangote Cement, Dangote industry around, people that will supply raw materials, people that will offtake their products will have a chance to meet them here and will try to create the link.”
Governor Dapo Abiodun of Ogun State, in his speech, said that his administration would also recognise that Micro, Small, and Medium Enterprises (MSMEs) were the pillar state’s thriving economy.
Abiodun, who was represented by the Commissioner for Agriculture and Food Security, Mr Bolu Owotomo, said that the Gateway International Trade Fair had remained a pivotal platform for fostering business interactions, promoting industrialisation, and facilitating trade and investment within and beyond our dear Ogun State.
“This year’s edition of the Gateway International Trade Fair provides a unique opportunity to reflect on the strides we have made in strengthening Ogun State’s economic landscape. The sharing of knowledge, experience, and resources will empower the next generation of entrepreneurs, driving them toward success and fostering a culture of collaboration.”
