Algerian, Nigerian ties demonstrate power of collaboration in promoting economic growth, regional stability, development
BY: Hana Saada
ALGIERS- Algeria and Nigeria have established a strong partnership through their bilateral cooperation. This collaboration has been instrumental in promoting economic growth, trade, and investment between the two nations. The relationship between Algeria and Nigeria has been built on mutual respect, trust, and a shared commitment to regional stability and development.
The bilateral cooperation between Algeria and Nigeria has resulted in numerous benefits for both countries. Algeria has been able to leverage Nigeria’s vast natural resources, particularly in the oil and gas sector, to support its own economic development. Nigeria, on the other hand, has benefited from Algeria’s expertise in areas such as agriculture, infrastructure development, and renewable energy.
The partnership between Algeria and Nigeria has also been critical in addressing regional security challenges. The two countries have worked closely together to combat terrorism and other forms of violent extremism in the region.
As for the economy, Algeria and Nigeria have been working towards strengthening their economic ties in recent years. The two countries have recognized the potential for mutually beneficial trade and investment opportunities, and have taken steps to facilitate greater cooperation.
Algeria, with its abundant natural resources and strategic location, has much to offer Nigeria. The country is a major exporter of oil and gas, and has a well-developed infrastructure that can support trade and investment. Nigeria, on the other hand, has a growing consumer market that presents attractive opportunities for Algerian businesses.
In the agricultural sector, both countries have been exploring ways to increase their agricultural productivity and improve food security. Algeria has been sharing its expertise in irrigation and crop management with Nigeria, while Nigeria has been exploring opportunities to export its agricultural products to Algeria.
To facilitate greater economic exchange, the two countries have signed several agreements and memoranda of understanding in areas such as energy, agriculture, and transportation. These agreements aim to promote trade and investment and create a more conducive environment for businesses to operate in.
In addition, both countries have established business councils to promote private sector engagement and identify areas for collaboration. These councils provide a platform for businesses to network, exchange ideas, and explore opportunities for joint ventures and partnerships.
Algerian-Nigerian Business Council set up in November 2022
In fact, the Algerian-Nigerian Business Council was set up in November 2022. It aims to foster stronger economic ties between the two nations and promote business opportunities for entrepreneurs from both countries. The council serves as a platform for networking, sharing knowledge, and exploring potential collaborations. This initiative is expected to enhance trade relations and contribute to the economic growth of both Algeria and Nigeria.
Both countries, members of the African Continental Free Trade Area (AfCFTA)
In addition to the agreements concluded between the two countries, it is worth recalling that both countries are members of the African Continental Free Trade Area (AfCFTA). This agreement was established in Kigali, Rwanda, on March 21, 2018, with Algeria signing on the same day and Nigeria signing at a later date (on July 7, 2019). The purpose of this agreement is to promote and revitalize trade within Africa, increase market access, and foster growth in agriculture, manufacturing, and industrial development through collaboration between member countries. This economic integration is of great importance to the African continent and its future prosperity.
A remarkable surge in trade exchanges between Algeria and Nigeria
As statistics show and based on the latest trade balance data, there has been a remarkable surge in trade exchanges between Algeria and Nigeria, with the figure skyrocketing from $1.8 million in 2012 to $111.35 million in 2022. It is worth noting that Algeria has enjoyed a trade surplus over the past decade. Despite this, trade relations between the two countries have remained relatively modest, with Nigeria ranking as Algeria’s third-largest customer and ninth-largest supplier in 2021.
Regarding exports, there was a slight dip in Algerian exports to Nigeria between 2020 and 2021, dropping from $10.80 million to $10.66 million. However, 2022 saw a significant increase in the volume of exchange, with export revenues from hydrocarbons accounting for 97.6 million dollars out of a total of 98 percent.
On the other hand, Algerian imports from Nigeria decreased by 14% between 2020 and 2021, from $4.19 million to $3.59 million. Nevertheless, 2022 witnessed a substantial increase in the value of imports, reaching $13.34 million, which represents 82% of the total imports valued at $11 million.
As for Algerian imports from Nigeria, their value decreased by 14% between 2020 and 2021, from $4.19 million in 2020 to $3.59 million in 2021. However, the year 2022 witnessed a significant increase in the value of imports, reaching $13.34 million. It represents 82% of the total imports at a value of $11 million.
Based on the data presented, it is evident that commercial exchanges between Algeria and its trading partner have experienced a significant increase, particularly in the first nine months of 2022. Algeria has emerged as the clear beneficiary of this trend, with hydrocarbon derivatives accounting for a staggering 99% of its exports. This can be attributed to a variety of factors, including the ongoing Russian-Ukrainian conflict, which has had a profound impact on fuel prices in global markets. Additionally, the policy adopted by OPEC+ countries to reduce production and stabilize prices has further contributed to Algeria’s success.
Furthermore, the measures taken by countries to recover from the COVID-19 pandemic have also played a role in this trend. Many nations have implemented policies aimed at compensating for their losses and achieving self-sufficiency in basic materials. As a result, Algeria has been able to capitalize on these developments and establish itself as a key player in the global market.
A wide range of products being exchanged between Algeria and Nigeria
It is worth noting that there is a wide range of products being exchanged between Algeria and Nigeria, with a primary focus on oil derivatives. Other products being traded include fertilizers, chemicals, minerals, and nutrients.
In terms of exports, Algeria primarily exports fuels, building materials, boilers, and machinery. On the other hand, Nigeria mainly imports foodstuffs, glass, and chemicals.
To provide a more comprehensive overview, the main products exported from Algeria to Nigeria are refined petroleum, steel structures, and cranes. Meanwhile, the main products imported from Nigeria to Algeria include oilseeds, glass, and cocoa paste.
Collaboration between Algeria and Nigeria in the field of education
The collaboration between Algeria and Nigeria in the field of education is a significant step towards enhancing the quality of education in both countries. This partnership aims to promote academic excellence, cultural exchange, and mutual understanding between the two nations.
Through this cooperation, Algerian and Nigerian students have the opportunity to study in each other’s countries, gaining exposure to different teaching methods, languages, and cultures. This exchange program does not only enrich the students’ academic experience but also fosters a sense of global citizenship and cross-cultural communication.
Nigerian students in Algeria are pursuing a diverse range of majors. Mathematics and computer science are the most popular, with 33 students enrolled. Other fields of study include civil engineering (01), biology (01), geography and regional development (01), economic sciences (21), political sciences (16), Islamic sciences (14), sociology (02), human studies (03), media and communication (04), English language (19), Arabic language (12), and law (15). In total, 142 Nigerian students are currently pursuing their academic goals in Algeria.
Overall, the Algeria-Nigeria bilateral cooperation has been a model for other countries in the region. It has demonstrated the power of collaboration and partnership in promoting economic growth, regional stability, and development. As the two countries continue to work together, they will undoubtedly achieve even greater success in the years to come.
