18/03/2024 By Opeoluwa
Dear Mr President, while criss crossing the globe in search of investments/ investors for Nigeria, have you considered Japan ?.
You recently reeled out executive orders in a bid to incentivize investment in gas,
Japan is the largest LNG buyer in the world, importing approximately 83 million ton. In terms of LNG infrastructure, Japan has the world's largest LNG storage capacity in above-ground storage tanks located at more than 30 regasification facilities, totaling 425.1 billion cubic feet (Bcf) of gaseous natural gas. Japan also boasts of 37 dedicated LNG import terminals.
Japan Bank for International Cooperation (JBIC), together with other investors, including the African Development Bank, co-financed the $24 billion Liquified Natural Gas project in Mozambique—which will make it the third largest in the world. Japan will buy 30% of its production.
Japan's petroleum exploration co Ltd had eyed U.S. as Prime Investment Hub for Energy Exploration however USA move to pause approvals for pending and future applications to export liquefied natural gas (LNG) from new projects has opened a great opportunity for Nigeria to latch on.
In terms of infrastructural investments, Japan is also seeking to open new frontiers as it seeks to rival china on the continent. Most recently, JBIC and Mizuho Bank, along with the African Development Bank and nine other financial institutions, invested $2.7 billion to build the Nacala corridor railway and port in Mozambique.
We know that Japan’s foreign direct investment in Africa declined from $10 billion in 2016 to just $4.7 billion in 2020 during Covid-19 but recovered to $6 billion in 2021. While Africa accounts for only 0.003% of Japan's $2 trillion global foreign direct investments, we are beginning to see Enormous interest from Japan. Japan is seeking to spend $30 billion in Africa in next couple of years. We also witnessing an uptick in the number of Japanese companies in Africa.
There is also renewed interest through venture , private and limited capital.
Japan’s technology can be very useful in our quest for agricultural revolution.
Japan aging and declining nation also serves as an opportunity for our young labour force via direct/indirect and outsourced labour.
Other interests of Japan on the continent are the mining sector, green / renewable energy sector, ICT sector.
Where am I going with this, Mr President?. We need to improve our trade with Japan. We need to set up a bilateral trade agreement and a business summit with Japan.
We need HM Yusuf Tuggar on the plane to Japan to meet with representatives from Japan ASAP.
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