A country with natural resources, a youthful population, and growing economic opportunities still stands at a critical juncture. However, sustainable economic transformation requires more than resource exploitation or infrastructural development. It demands a strategic, well-thought-out approach to foreign policy that prioritises economic interests and regional integration while balancing relationships with global powers.
Foreign policy remains a powerful tool for economic growth. Nigeria nations must recognise that their interactions with the rest of the world involve political alliances and leveraging global relationships to drive development. Nigeria can attract more trade opportunities and foreign investment and foster technological innovation by adopting a pragmatic and development-oriented foreign policy that will ultimately transform its staggering economies and improve the livelihoods of its people.
From a historical perspective, colonial legacies, dependency, and unequal partnerships have defined Africa’s foreign relations. Many African countries inherited systems prioritising extraction overdevelopment, which has persisted in different forms through modern trade agreements and foreign investments. However, the world has changed, and Africa must adapt to this new global landscape.
Global powers like the United States, China, the European Union, and emerging economies like India, Turkey, and Brazil see Nigeria as vital partners. Why is Nigeria not utilising this opportunity? Nigeria should learn from the history of the ruling countries and rising economic powers. The growing interest presents a unique opportunity for Nigeria to negotiate partnerships that align with the interest of sustainable economic growth.
Nigerian leaders must shift from reactive to proactive diplomacy, ensuring that every international engagement contributes to the continent’s transformation agenda. Initiatives like China’s Belt and Road Initiative (BRI) have led to significant infrastructural investments across Nigeria and Africa. While critics have raised concerns about debt sustainability and neo-colonial tendencies, Nigeria can renegotiate terms to maximise benefits while minimising risks. Similarly, partnerships with Western governments and institutions, traditionally tied to aid and conditionality, must evolve into equitable relationships prioritising trade, technology transfer, and capacity building.
One of the most effective ways for Nigeria to leverage foreign policy for economic transformation is by prioritising trade. The African Continental Free Trade Area (AfCFTA), which became operational in 2021, has presented a huge market opportunity for Nigeria to market its resources to various markets as it will boost its economic growth and development.
Through strategic foreign policy, Nigeria can attract investment to develop export-oriented industries and integrate into global value chains. Countries like Ethiopia, Kenya, and Rwanda have already made strides by attracting foreign manufacturing, technology, and agriculture investors. For example, Ethiopia’s partnership with Chinese and European investors has transformed its textile industry into a significant export sector, creating jobs and boosting foreign exchange earnings.
Moreover, foreign policy can be instrumental in securing access to international markets. Nigeria must negotiate trade agreements that remove barriers to entry, reduce tariffs, and facilitate the free flow of goods and services. Africa’s rich agricultural produce, minerals, and manufactured goods can find new markets in Asia, the Middle East, and Latin America, diversifying its trade partners and reducing overreliance on traditional markets.
Foreign policy plays a crucial role in shaping investor confidence and attracting Foreign Direct Investment (FDI). Nigeria can position itself as an attractive investment destination by fostering political stability, good governance, and transparency. Countries like Ghana, Mauritius, and Morocco have successfully implemented policies encouraging foreign investment, resulting in significant economic gains. Meanwhile, the Nigerian government must ensure that FDI aligns with national development priorities. Too often, foreign investments focus on resource extraction, offering limited value addition to local economies. Strategic foreign policy can address this challenge by negotiating investments that prioritise technology transfer, local employment, and infrastructure development.
For instance, Nigeria can leverage its abundant renewable energy resources to attract investments in green technologies. Partnerships with countries like Germany, the United Arab Emirates (UAE), and China, which have advanced clean energy sectors, can help Nigeria develop solar, wind, and hydroelectric power projects. This addresses energy deficits and creates new economic opportunities in sustainable industries.
Technology and innovation are key drivers of economic transformation in today’s digital age. Nigeria must harness foreign policy to build partnerships that foster technological exchange and innovation ecosystems. Nigeria can bridge the technology gap and drive economic growth by engaging with countries with advanced digital economies. For example, partnerships with South Korea, Japan, and India have already facilitated knowledge transfer in information and communication technology (ICT), healthcare, and education. Countries like Nigeria and Kenya have emerged as tech hubs, attracting investments from global technology giants such as Google, Microsoft, and Facebook. These partnerships are critical for creating jobs, boosting entrepreneurship, and enhancing Africa’s competitiveness in the global economy.
Nigeria’s economic transformation requires a delicate balance in its relationships with global powers. While China remains Africa’s largest trading partner, Western nations continue to play a significant role in providing development aid, investment, and trade opportunities. The Nigerian government must avoid being caught in geopolitical rivalries and instead focus on partnerships that deliver tangible economic benefits.
Harnessing foreign policy for economic transformation must also include strengthening regional integration. Nigeria and other African countries can achieve greater bargaining power by presenting a united front in global negotiations. Regional blocs such as the Economic Community of West African States (ECOWAS), the Southern African Development Community (SADC), and the East African Community (EAC) must work together to harmonise policies, reduce trade barriers, and attract collective investments. The AfCFTA provides a framework for continental integration, but its success depends on political will and effective implementation. By speaking with one voice, Africa can negotiate better trade deals, secure investment for cross-border infrastructure projects, and create a competitive regional market that attracts global investors.
In conclusion, Nigeria’s economic transformation hinges on its ability to harness foreign policy as a growth tool. Nigeria can unlock vast economic potential by prioritising trade, attracting strategic investments, fostering technology partnerships, and balancing global relationships. However, this requires visionary leadership, pragmatic diplomacy, and a commitment to putting Nigeria’s development first.
Foreign policy is not just about diplomacy but about securing the future. By leveraging its unique strengths and building equitable partnerships, Nigeria and Africa can achieve the economic transformation its people deserve. The world is watching, and Africa must seize this moment. The time for action is now.
