Business
Nigeria, Brazil Sign MoU On Trade Investment
Nigeria and Brazil recently in Abuja signed a Memorandum of Understanding (MoU) to strengthen their bilateral cooperation on trade and investment.
The Minister of Trade and Investment, Mr Olusegun Aganga, signed on behalf of Nigeria, while Mr Ricardo Shaefer, his Brazilian counterpart on Development, Industry and Foreign Trade, signed for his country.
The Tide source reports that the agreement aims at strengthening bilateral cooperation on the promotion and facilitation of trade and investment between the two countries.
Speaking at the ceremony, Aganga said that the MoU was a follow-up to the recent meeting between President Goodluck Jonathan and his Brazilian counterpart, Dilma Rousseff.
According to him, the agreement goes beyond trade and investment to include industrial cooperation and financing as well as how both countries can double their trade volume.
The minister listed the sectors covered by the MoU to include infrastructure, power, automobile, agriculture and sugarcane to sugar among others.
“Nigeria has policies on sugar and automobile development. These are areas that Brazil has very strong presence and this is how we work together to develop those sectors.
“In the area of trade, the balance of payment is in favour of Nigeria but that is because of the export of crude oil to Brazil.
“We have agreed that we need to look at the non-oil sector and double trade within the next two years in all the sectors in terms of industrial products, services, agriculture and all that.
“Then we have looked at how to strengthen institutions to deliver and support industrial and SMEs development as well as trade.
“In Brazil, there is Sindra and of course SINACH, both of which offer almost the same services as the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).
“We want to make sure that there is a strong relationship because that is what is going to address the development of micro, small and medium enterprises in both countries.
“So, this agreement will cover cooperation in all these areas including how we double trade between the two countries, and of course how we attract investment into strategic areas of the economy.”
Aganga, however, decried the presence of some obstacles to free movement of people between both countries, which he said, were a threat to implementation of the agreement.
He identified a lack of direct flight from Nigeria to Brazil and the difficulty in obtaining visa at the Brazilian Embassy as some of the obstacles that should be addressed.
In his remark, Shaefer, observed that Brazil and Nigeria shared some development challenges that could be addressed through cooperation.
He noted that stronger economic and trade ties between Nigeria and Brazil would translate into economic development for both countries and a better life for their citizens.
The minister, who spoke through an interpreter, expressed his delight on the MoU, pledging the commitment of his country to its implementation for the benefit of both countries.
Executive Director, RSSDA, Mr Noble Pepple (left), with Managing Director, ICMSE Nigeria Limited, Dr Mostaq Ahmed, during the presentation of starter packs to micro entrepreneurs in Woji Town, near Port Harcourt, last Monday. Photo: Egberi A. Sampson
Credit to Nigeria’s private sector rose to N83.26 trillion in June 2026 from N81.04 trillion in May, signifying a positive balance of N2.22 trillion month-on-month.
Year-on-year, the figure represents a nine per cent increase compared with the N76.13 trillion recorded in June 2025. The latest figures come as the CBN continues to balance efforts to control inflation with the need to support economic growth and expand credit to businesses.
The CBN data shows that credit to Nigeria’s private sector increased by approximately 2.74 per cent month-on-month between May and June 2026. Also, the CBN data noted that credit to the government fell slightly to N40.03 trillion from N40.38 trillion. Other assets, net, dropped to N10.76 trillion from N12.63 trillion.
The credit surge signifies sustained growth in lending to businesses and other private-sector borrowers during the month. The rise in private sector credit was recorded alongside an increase in net domestic credit, despite declines in credit to government and other assets.
Further analysis of the report says that compared with June 2025, private sector credit rose by about N7.13 trillion yea-on-year but net domestic credit increased by approximately N1.87 trillion during the month.
The CBN’s relatively tight monetary policy stance notwithstanding, more banks still loaded funds to the private sector within the period. The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held its 306th meeting on July 20 and 21.
The Committee reviewed recent developments in the global and domestic economies, assessed emerging risks to the outlook and considered their implications for monetary policy and retained all rates.
The Committee decided to retain the Monetary Policy Rate at 26.5 per cent; the Standing Facilities Corridor around the MPR at +50/-450 basis points and retain the Cash Reserve Requirement (CRR) for Deposit Money Banks at 45.00 per cent, Merchant Banks at 16.00 per cent, and non-TSA public sector deposits at 75.00 per cent.
The MPC decision means that credit extension in the private sector will likely continue to rise because of rising confidence in the sector and calls by stakeholders for banks to invest in the private scetor instead of government securities.
