[Bridge to Africa] Nigeria seeks Korean EV investment

Nigeria's plans to create a favorable environment for electric vehicle investment will be an opportunity for South Korean carmakers, Nigeria's foreign minister told The Korea Herald.

"You can mine the lithium, refine it in Nigeria, produce the EV cars there, and sell them to consumers locally,” Nigerian Foreign Minister Yusuf Tuggar said Monday.

“It’s a complete value chain ready to be exploited,” he said.

Nigeria has significant lithium deposits in Nasarawa, Kogi, Kwara, Ekiti, Cross River, and Edo. As Africa's largest economy, it aims to profit from the global lithium market, essential for rechargeable batteries and electric vehicles. South Korean companies have been looking into Nigeria's lithium reserves.

Instead of competing for European and American markets, Korean companies have a new and untapped market called Africa, the minister said.

Encouraging Korean companies to explore the EV ecosystem, the minister also referred to Nigeria’s ongoing efforts to diversify the country's energy mix.

“We are constructing gas pipelines across the country, which will generate substantial electricity for electric vehicles,” he said.

According to Tuggar, Nigeria doesn't require heating during winter months, providing an ideal environment for EV production, unlike more developed countries that struggle to meet their electricity needs.

“What we can provide is safety for investment and security, which is what the Bola Ahmed Tinubu administration is focused on,” he said.

“We have embarked on macroeconomic reforms that guarantee investors can exit with their funds and profits.”

He also pointed out the expansion of Nigeria’s special economic zones, citing the Lekki Economic Zone (LFTZ), home to one of the largest refineries in the world.

The zone is Nigeria's leading and fast-growing free zone aimed at attracting foreign investment, creating jobs, and boosting economic growth with minimal customs restrictions.

Nigeria has 14 operational Special Economic Zones offering foreign companies tax holidays, duty-free importation, and 100 percent repatriation of capital, profits, and dividends.

Key zones include Calabar, Kano, Lekki, Ladol Logistic, Ogun Guangdong, Oil and Gas, and Snake Island Integrated Free Trade Zones.

“Nigeria has a youthful population. So for Korea, it presents the opportunity for electric vehicles,” added Tuggar.

Meanwhile, he also highlighted Nigeria's pivotal role in the African Continental Free Trade Area (AfCFTA) to create the largest free trade area in the world.

The AfCFTA is the largest free trade area in the world, encompassing 54 of the African Union's 55 countries, representing 1.3 billion people and a combined gross domestic product of $3.4 trillion.

“Nigerian banks are leading this initiative, creating platforms for small and medium enterprises across Africa to access the AfCFTA ,” according to the minister.

He also said that Nigeria’s advanced financial infrastructure, such as the Pan-African payment system modeled after the Nigerian Interbank Settlement System, is fostering the growth of fintech and startups in the country.

“This is why we have numerous unicorns emerging out of Nigeria," Tuggar underlined.

Sharing his message for Korea-Africa Summit, Tuggar revisited the shared history and aspirations between Korea and African countries such as Nigeria.

Korea was a colony of Japan from 1910 to 1945, while Nigeria was a British colony from 1861 to 1960.

“We share a common background of colonization by major powers, and like South Korea, Nigeria aims to develop rapidly,” he concluded.

“South Korea serves as a model for us and other African nations.”