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
Edun made the call while speaking at the 2025 Fellowship Investiture of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, where he reaffirmed the federal government’s commitment to sustaining ongoing reforms and expanding access to finance as key drivers of economic growth beyond four per cent.
“We all know that monetary policy under Cardoso has stabilised the financial system in a most commendable way. Of course, it is a team effort, and those eye-watering interest rates have to be paid by the fiscal side. But the fight against inflation is one we all have to participate in,” he said.
The minister stressed the need for banks to broaden credit access and finance innovation-driven enterprises that can create jobs for young Nigerians.
“The finance and banking industry has more work to do because we must finance their ideas, deepen the capital and credit markets down to SMEs. They should not have to go to Silicon Valley,” he said.
The minister who described the private sector as the engine of growth, said the government’s reform agenda aims to create an enabling environment where businesses can thrive, access funding, and contribute meaningfully to job creation.
The facility, known as the Nigeria Actions for Investment and Jobs Acceleration (P512892), is a Development Policy Financing (DPF) operation scheduled for World Bank Board consideration on December 16, 2025.
According to the Bank’s concept note , the financing would comprise $500m in International Development Association (IDA) credit and $500m in International Bank for Reconstruction and Development (IBRD) loan.
If approved, it would be the second-largest single loan Nigeria has received from the World Bank under President Bola Tinubu’s administration, following the $1.5 billion facility granted in June 2024 under the Reforms for Economic Stabilisation to Enable Transformation (RESET) initiative.
The World Bank said the new programme aims to support Nigeria’s shift from short-term macroeconomic stabilisation to sustainable, private sector–led growth.
“The proposed Development Policy Financing (DPF) supports Nigeria’s pivot from stabilization to inclusive growth and job creation. Structured as a two-tranche standalone operation of US$1.0 billion (US$500 million IDA credit and US$500 million IBRD loan), it seeks to catalyse private sector–led investment by expanding access to credit, deepening capital markets and digital services, easing inflationary pressures, and promoting export diversification,” the document read.
The document further stated that Nigeria’s private sector credit-to-GDP ratio stood at only 21.3 per cent in 2024, significantly below that of emerging-market peers, while capital markets remain shallow, with sovereign securities dominating the bond market.
To address these weaknesses, the DPF will support the implementation of the Investment and Securities Act 2025, operationalisation of credit-enhancement facilities, and introduction of a comprehensive Central Bank of Nigeria rulebook to strengthen risk-based regulation and consumer protection.
The operation also includes measures to deepen digital inclusion through the passage of the National Digital Economy and E-Governance Bill 2025, which will establish a legal framework for electronic transactions, authentication services, and digital records.
Beyond the financial and digital sectors, the programme targets reforms to lower production and living costs by tackling Nigeria’s restrictive trade regime. High tariffs and import bans have long driven up consumer prices and constrained competitiveness, particularly for manufacturers and farmers.
Under the proposed reforms, Nigeria would adopt AfCFTA tariff concessions, rationalise import restrictions, and simplify agricultural seed certification to increase the supply of high-quality varieties for maize, rice, and soybeans. The World Bank projects that these measures will help reduce food inflation, attract private investment, and enhance export potential.
The operation is part of a broader World Bank FY26 package that includes three complementary projects—Fostering Inclusive Finance for MSMEs (FINCLUDE), Building Resilient Digital Infrastructure for Growth (BRIDGE), and Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW)—all focused on expanding access to finance, strengthening institutions, and mobilising private capital.