Korea’s $1.1bn Trade with Nigeria Exposes Untapped Industrial Partnership, Ambassador Warns

–      Seeks resolution of 20-year-old tax treaty as Seoul pushes manufacturing, tech transfer, local production

Michael Olugbode in Abuja

South Korea has identified Nigeria’s failure to complete the ratification of a bilateral tax agreement signed 20 years ago as a lingering obstacle to deeper investment relations, urging the federal government to resolve the outstanding issue as both countries seek to transform their $1.1 billion trade relationship into a broader industrial partnership.

The Korean government said Nigeria’s economic relationship with Seoul must move beyond the traditional exchange of Nigerian oil and gas for Korean vehicles, electronics and machinery to one built around manufacturing, technology transfer, agricultural industrialisation and local employment.

Korean Ambassador to Nigeria, Jeong Yo-an, who disclosed this at a press briefing in Abuja, said the double taxation agreement signed by both countries in 2006 remained an important outstanding issue that needed urgent attention to improve investment predictability and encourage Korean companies to establish and expand operations in Nigeria.

The agreement, designed to prevent individuals and companies operating between the two countries from being taxed twice on the same income, was expected to provide greater certainty for cross-border investments.

South Korea completed its domestic ratification process in 2007, while Nigeria’s legislative approval process advanced in 2019. However, the agreement did not receive the required presidential assent before the end of the administration at the time, leaving its implementation unresolved.

Jeong said the delay was particularly concerning at a time when both countries were seeking to expand commercial relations and attract more private investment.

He argued that investors needed predictable policies, particularly in taxation, customs administration and foreign exchange, before committing substantial capital to long-term projects.

The ambassador said the unresolved agreement was among the issues he intended to pursue during his diplomatic assignment, stressing that its resolution would demonstrate Nigeria’s commitment to providing a more predictable investment environment.

Beyond the tax agreement, he challenged both countries to reconsider the structure of their economic relationship, noting that the existing trade pattern had largely confined Nigeria to supplying energy resources while importing finished products from South Korea.

“Today, Nigeria sells us mostly oil and gas. Korea sells mostly cars, electronics and machinery. We can do much more than that,” he said.

The envoy said South Korea wanted to deepen its involvement in Nigeria’s productive economy through local assembly, manufacturing partnerships, agricultural machinery production, digital skills development and maritime cooperation.

“The next chapter should be ‘Made in Nigeria’. Local assembly. Machinery for rice farmers. Digital skills. The maritime sector,” he said.

The proposal comes against the background of decades of economic relations between the two countries, which established diplomatic ties in February 1980.

Over the years, Korean companies have developed interests in Nigeria’s construction, energy, telecommunications, electronics and manufacturing sectors.

Jeong cited Daewoo Engineering and Construction’s participation in major Nigerian projects, including the Nigeria LNG Train Seven project and the Indorama fertiliser plant, as examples of the existing industrial relationship.

He also identified Samsung, LG, Hyundai and Solpia among Korean companies maintaining business activities and partnerships in Nigeria.

However, he maintained the next phase should go beyond supplying equipment and executing large infrastructure contracts to building local productive capacity, developing Nigerian expertise and creating opportunities for domestic businesses.

He urged Nigerian companies seeking international partnerships to utilise the Korea Trade-Investment Promotion Agency (KOTRA) office in Lagos to connect with Korean manufacturers and explore access to the Korean market.

On agriculture, the ambassador identified opportunities for cooperation in mechanisation, improved production systems and the development of agricultural value chains, particularly given Nigeria’s need to increase productivity and expand local processing.

He also highlighted the potential for collaboration in renewable energy, digital technology, artificial intelligence and maritime development.

The ambassador said Korea was prepared to share its industrial development experience with Nigeria but cautioned against attempting to reproduce its economic model without considering local conditions.

Recalling Korea’s emergence from the devastation of the Korean War in 1953, when its per capita income was below $100, he said the country had transformed itself into a major industrial and technological economy through sustained investments in education, skills, manufacturing and institutional development.

“The key word is not ‘copy’. The key word is ‘adapt’. Nigeria will write its own story. Korea is ready to share what we have learned,” he said.

He also highlighted ongoing Korean development cooperation in Nigeria, particularly in education, entrepreneurship and human capital development.

According to him, approximately 2,000 Nigerian government officials have received training in South Korea through the Korea International Cooperation Agency (KOICA).

He said KOICA’s Smart School project, implemented in partnership with the Universal Basic Education Commission, had reached about 8,000 pupils and provided training for more than 300 teachers and school administrators.

Another major initiative is the Abuja Centre for Entrepreneurship, developed through cooperation involving KOICA, the Small and Medium Enterprises Development Agency of Nigeria and the United Nations Development Programme.

The centre, whose groundbreaking took place in September, is designed to help young Nigerians develop business ideas into sustainable enterprises through training, mentorship and access to markets and financing.

Jeong said the initiative was structured to ensure that Nigerian institutions and professionals would eventually manage its operations, with a Training of Trainers programme providing the local expertise needed to sustain the project.

“A building alone does not create entrepreneurs,” he said, explaining that the centre was intended to connect start-ups with investors, private-sector operators and development partners.

He also disclosed that KOICA was working with the Food and Agriculture Organisation to promote agricultural development and create green employment opportunities for Nigerian youths.

On digital inclusion, he recalled the establishment of the Nigeria-Korea Information Access Centre in Abuja in 2025 to strengthen digital literacy and provide access to technology resources.

The ambassador said Korea’s Global Korea Scholarship programme and other postgraduate and government fellowship opportunities would continue to provide avenues for Nigerian students and professionals to acquire expertise in information technology, public administration and health.

He added that future cooperation would increasingly involve private companies, start-ups and innovators, particularly in artificial intelligence and digital entrepreneurship.

On the diplomatic front, Jeong welcomed Nigeria’s offer to host the seventh session of the Nigeria-Korea Joint Commission in Abuja, describing it as an opportunity to advance economic cooperation and address outstanding bilateral issues.

He also cited the 2024 Korea-Africa Summit in Seoul and the Korea-Africa Foreign Ministers’ Meeting held in June 2026 as important platforms for strengthening relations.

Korea, he said, was working towards expanding its Official Development Assistance to $10 billion by 2030 and providing $14 billion in export financing to support its companies operating across Africa.

He disclosed that Seoul was also planning to host the second Korea-Africa Summit in 2029 to consolidate its engagement with the continent.

Beyond government and business relations, the ambassador said cultural exchanges were creating additional opportunities for people-to-people engagement, citing the growing popularity of Korean films, music, cosmetics and Taekwondo in Nigeria.

He disclosed that more than 300,000 people had participated in programmes organised by the Korean Cultural Centre Nigeria since its establishment, while recent cultural and sporting events had attracted growing youth participation.

The ambassador, a former military officer who spent 36 years in uniform before entering the diplomatic service, said he intended to pursue practical outcomes during his tenure in Nigeria.

“The army taught me one simple lesson: trust is built when you keep your word. That is how I want to work in Nigeria – with more results,” he said.