Monday, August 11, 2025 - Nigeria and Germany have reaffirmed their long-standing bilateral relationship with renewed commitments to cooperation across strategic sectors, including energy, trade and migration.
The Deputy Chair, SPD Parliamentary Group in the Germany
Bundestag, Berlin, Mr Armand Zorn, said Germany is set to deepen its
relationship with Nigeria, expected to affect key areas across key sectors such
as energy, trade, and migration governance.
Zorn, who said this during a meeting with the labour,
organised by Friedrich Ebert Stiftung (FES) in Lagos, said Germany reaffirmed
its recognition of Nigeria as a strategic partner in sub-Saharan Africa, noting
that Nigeria is its second-largest trading partner in the region.
Discussions focused on expanding economic cooperation,
enhancing development partnerships, and creating structured legal pathways for
migration.
According to Zorn, Germany considers Nigeria as an important
partner for advancing regional stability, democratic governance and economic
progress in West Africa.
He said the new tax reform should serve as a lifeline for
the development of the economy, most especially the Small Medium Enterprises
(SME). He said the super rich Nigerians should be made to pay more tax.
“The government must expand its tax base, not increase
tax. They must bail Nigeria out of its difficult times of inadequate funds.
“For taxes to do this, the government must find a system
that the super rich can be taxed appropriately without force. Tax fairness is
important,” Zorn said.
Keynote speaker/Professor of Economics, University of
Ibadan, Olawale Ogunkola, who evaluated the economic performance using the
inflation rate, exchange rate, Gross Domestic Product (GDP), tax reforms,
electricity, unemployment rate, trade, fiscal policy, among others, said the
economy is growing though below expectation, considering the challenges.
Through presentations, the don compared and explained
Nigeria’s GDP’s growth between 2022 and last year, adding that the growth
experienced is still very low, most especially in comparison to the population.
He urged the governments to sustainably invest in economic
diversification, fiscal accountability, and institutional reform to curb
hardship and corruption.
On the minimum wage, he said the economic situation has
eroded the gain of the N70, 000 minimum wage.
“Inflation acts as an invisible thief, quietly eroding the
purchasing power of workers. While the government’s wage increase to N70,000
was meant to alleviate financial stress, the persistent inflation rate means
that this amount does not stretch as far as intended.
“Despite the eventual minimum wage increase approved by the
government, the rise in the price of Premium Motor Spirit (PMS) and other
macroeconomic challenges had depleted the impact of the N70,000 minimum wage
increase,” he said.
For the economy to grow sustainably, the don recommended
short-term relief measures. For medium and long-term measures, he recommended
economic diversification and growth, tax reform and fiscal policy, and
institutional reform
Resident Representative, FES-Nigeria, Lennart Oestergaard,
said the engagement marked a renewed chapter in Nigeria-Germany relations,
underpinned by shared values, economic cooperation, and a commitment to
sustainable development and regional stability.
He affirmed the importance of aligning development with
mutually beneficial migration frameworks that support job creation and skills
mobility.
President, National Union of Chemical, Footwear, Rubber,
Leather, and Non-Metallic Products Employees (NUCFRLANMPE), Comrade Bolarinwa
Sunday, pointed to persistent hikes in electricity tariffs and multiple banking
charges as evidence of anti-poor governance driven by capitalist greed rather
than social welfare.
According to him, Nigerians are paying for the failures of
the government through inflationary tariffs and exploitative financial
practices that further impoverish the people.
“Everyday they are increasing electricity tariffs. How many
people can afford to buy diesel? And to make it worse, banks are collecting
excessive charges from customers. You see charges from ATM, from transfer, from
account maintenance. What are they maintaining?” he queried.
Bolarinwa argued that the system only benefits a few elite
and foreign interests while local manufacturers struggle with high production
costs, forex scarcity, and dwindling consumer purchasing power.
He highlighted the volatility in the exchange rate.
“There is scarcity of foreign exchange. Most of our
industries are into importation. They import raw materials. Once they cannot
get forex, they cannot produce. And if they do produce, the prices will be high
and unaffordable to the common man,,” he said.
Bolarinwa, however, advocated a shift from capitalist
doctrine to policies that prioritise inclusive growth, such as subsidised
electricity, accessible and low-interest loans, and protection of domestic
industries.
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