Why Nigeria?

The economic relationship between the United Arab Emirates (UAE) and Nigeria is robust and dynamic, characterized by growing trade, increasing investment, and a shared commitment to mutual prosperity. While a comprehensive free trade agreement (like the UAE's recent CEPAs) is still under discussion, the two nations have built a strong foundation through various bilateral accords, paving the way for a more integrated and mutually beneficial partnership.

1. Growing Trade Volume: Non-oil trade between the two countries has seen remarkable growth, reaching approximately $2.4 billion in 2022. The UAE is one of Nigeria's most vital trading partners in the Gulf, and Nigeria serves as a strategic gateway for UAE investments into West Africa.
2. Diverse Trade Goods: The trade relationship is becoming more diversified. Nigeria's exports to the UAE include gold, spices, and charcoal, while the UAE exports a range of high-value goods to Nigeria, such as refined petroleum, broadcasting equipment, and automobiles. This is particularly relevant to the IT sector, as IT hardware and accessories from the UAE are a key component of this trade.
3. Investment and Foreign Direct Investment (FDI): The UAE is a leading source of foreign direct investment into Nigeria, with significant financial flows in recent years. This investment spans various sectors, including technology, energy, and infrastructure.
4. Bilateral Agreements and Cooperation: A Joint Committee has been established to guide and strengthen bilateral cooperation across political, economic, cultural, and security fields. This committee oversees the implementation of agreements and supports commercial initiatives, demonstrating a formal commitment to deepening ties.
5. Ongoing Discussions for a CEPA: Nigeria and the UAE are in progressive discussions regarding a Comprehensive Economic Partnership Agreement (CEPA). This future agreement aims to significantly boost trade and investment by facilitating customs cooperation, enhancing legal frameworks, and reducing trade barriers, creating new opportunities for businesses in both countries.

For businesses like Prosmart Distribution Limited, this strong and evolving partnership provides a stable and supportive environment for IT trading and distribution between Dubai and Nigeria. It underscores the importance of our role in bridging these two major economic hubs and delivering high-quality, branded IT products to the Nigerian market and beyond.