Japanese Ambassador to Nigeria, Ryuchi Shoji, last week led a
delegation of his diplomatic team, including his wife, Anh, on a
courtesy visit to The Guardian’s Rutam House. During the visit, Shoji
took time to give answers to questions as well as issues raised by our
senior editorial team. He spoke on Nigeria-Japan relations in the last
54 years, challenges against establishing Japanese car assembling plants
in Nigeria, his country’s displacement as No. 2 industrialised economy
as well as problems with China among others. Excerpts:
On Nigeria-Japan’s relations
WE have long-standing relations with Nigeria. Our relationship started two months after Nigeria’s independence – that means about 54 years ago. To Japan, Nigeria is the most important African country. One characteristic about our relationship is that we have so much potential and we have spent more than 50 years trying to strengthen our ties with Nigeria. At the same time, there is much more than we can do in terms of political relations and you should also know that both nations are giants in their two respective continents – Nigeria in Africa and Japan in Asia. If we can cooperate and harmonise our agendas on international affairs, then we can make a difference in the management of international organisations like United Nations (UN).
In terms of economy, yes, we have potential, especially in the areas of how much we are complimentary. We have no resources, but we have a huge population and determined to work for a better life. We also have technology, know-how management and financial capability. We can make a great big difference. And what I’m doing now is to un-turn the stone to make this potential into reality. Another characteristic about our relationship is consistency in continuity.
If I talk about our economic cooperation, it started in the 60s and till now, we are here to assist Nigeria. Since mid-60s, there is no interruption, except under the regime of Sani Abacha. And so, this continuity in consistency of policies is one of the characteristics of our relationship. This is symbolised by taking international conference processes and our assistance in the field of polio eradication, which started about 13-14 years ago. Since this year and last year, there is a kind of new turning-point in our relationship, especially in the field of economic relations. TICAD V (the Fifth Tokyo International Conference on African Development) is there to endorse this strategy.
In a few words, we will like to introduce more Japanese companies in Nigerian markets and more investments, so that we can really promote a win-win relationship on a bilateral basis, especially on economic fields. In this connection, I will emphasise that we will do it by our unique way. What is our unique way? As our Prime Minister Abe stressed, the Japanese company investing in foreign countries also bring with them Japanese management philosophy. What is the essence of our management philosophy? It is human-centred approach. For example, the chief executive officer (CEO) of a Japanese company must make the company as strong as its employees. Japanese companies welcome and encourage initiative coming from the bottom and also try to make best use of resources available in the companies. We believe this would be beneficial for Nigeria. In fact, Japanese companies are interested in investing in Nigeria. Last year, we had five new investment decisions taking by Japanese companies and almost every day and every week, I receive new representatives of Japanese companies who want to come and visit Nigeria looking for business opportunities. We would try hard to promote this win-win relations in trade and investment. This is one of our biggest missions endorse by our government to bring about new vista to our relations.
On policy of sharing of experience and technology to tackle disaster management
After the Tsunami in 2012, we made it as part of our foreign policy to share our experience and technology with other countries to build up their capacity to resist and prevent natural disasters. We have been working hard on this. By March this year, there will another international conference, which will centre on the same issue.
On lack of assembling plants for Japanese cars in Nigeria
I must commend that Nigeria provides potential for a huge and promising automobile market. And I think sometime in the future, there should be investment by Toyota and other Japanese companies in this area. But at the same time, the manufacturing automobile is a kind of complicated work. It requires for example in your type of car, 20,000 different parts. Toyota’s mission for example is not to keep cars and parts in stock for a long time. When these 20,000 parts come in for assemble, of course the quality of the parts count to maintain the quality of the cars. Therefore, every Japanese automobile manufacturer looks for a type of assembling environment. For example, if Nigeria’s supporting industries are big and could provide such required goods on time with the required qualities. What about port clearance procedure and good road condition? You don’t have enough electricity and port clearance may not take seven days or two weeks and so on. Another question is whether Nigeria’s supporting industries will develop fast enough to provide the parts the plants will need.
If you look at this side of situation, the answer is very much clear. Beside the sad points, I welcome new automobile development plan that set a goal, which deserves to be pursue vigorously by Nigerian Federal Government. Because a real automobile plan takes 10 years or much more than 10 years; it is a long time project, not like the textile industry for example. I also think the goal is nice, but the Federal Government should be careful about how they will manage this process of 10 or 20 years. You can not just raise taxes and levies to stem import without considering other relevant and efficient measures. Also, you can’t force the manufacturing companies to embrace local contents without nourishing the parts industry. We think the goal is okay but this transition period should be managed very well and carefully. We should have a strategy and good plan of implementation; may be step-by-step implementation and also consistency of Federal Government’s policies. Japanese automobile companies insist on importance of consistency of policies.
Having said that one, one of my objectives for visiting Lagos is to travel to Ondo and see Elizade University of Technology being managed by Chief Ade Ojo. Another mission is to consult with representatives of Japanese companies involve in automobile manufacturing and trading to involve in our assistance measures towards the realisation of the new automobile industry. We will like to provide support, especially in the field of technical assistance and training of technicians needed for the automobile industry. This will take time, but we like that idea. I think it can draw general support from our Japanese automobile industries.
On arrangement between Nigeria and Nissan to build a model of a Nigerian car
I read it in the newspapers. It was a big news of course. But so far, while we and Japanese manufacturers are looking at those constraints, Carlos of Nissan looked at the brighter side and promised to commit his company to it. This is a great and nice news for me as ambassador of Japan. Also, we will like to make the plan a fruitful one; a sustainable one. You need not just a Nissan, you need Toyota and Honda. Our task is to create the enabling environment for those other manufacturing companies, including Nissan too, to successfully invest in Nigeria by way of setting up automobile assembling plant. But it is my position that to do so, it needs a lot of preparation; and a lot of attention should be paid to how we are going to implement the policy. We need to develop the human capability, small and medium-scale industries, management know-how should be shared, and we should go step-by-step.
On Japan’s displacement as No.2 industrialised economy
I am proud that we are still No.2 economy in the world. We encouraged China in the 80s and 90s to open up its economy into market economic system. China was the biggest recipient of our economic assistance. Well, they have forgotten that already and this is a fact. Economic size can be determine or influence by the size of the population. And in that sense, Nigeria could be of course not only the 20th economy of the world but one of the 10 economies.
Anyway, what happen to our economy is that we have been having difficulties for almost 20 years; 20 years of economic depreciation or bubble-bust. This was accompanied with rapid appreciation of yen and that make Japanese companies’ importing management very difficult. Our economic is also being affected by the ageing population and huge public debt which has been accumulated. But now, the trend is turning in the right direction. Japanese stock market shares have increase by almost 80 per cent and too high Yen rate has been adjusted. Prime Minister Abe since his re-election has taken two bold economic policies – one monetary policy and the other is fiscal policy. This to strengthen Japanese companies’ competitiveness by stimulating entrepreneurship. And now, he is emphasising on the roles of women within the country and also outside the country. Before, half of our human resources was not utilised and he tried hard by making commitment to create a society in which women shine. And so, Prime Minister Abe is taking series of deregulation, fiscal measures, as well as measures to educate our your population to make the best use of their talents in tune with modern society. So, we expect and hope that this growth would continue this year and you will see the result in 12 or 24 months. This is sustainable. And then, we will not only come back to No.2, but will come back to our strong competitive economy in tune with knowledge society.
On Abe’s commitment to double the Yen loan of equivalent of N1 billion to African countries during his recent trip
The commitment double Yen loan to Africa by Prime Minister Abe is in addition to TICAD V (the Fifth Tokyo International Conference on African Development). The commitment is new. In any case, firstly, TICAD V is a strategy to sustain and accelerate goals and secondly, it is designed to make the goals inclusive. And also very importantly, for the acceleration of goals, it should be driven by the private sector. The role of government is also important, which is to provide the enabling environment. And it takes two to tango. For example, there is a Nigerian side of responsibility to provide enabling environment for business and on our side, we will concentrate our efforts in improving infrastructure and human capacity development in Nigeria and other African countries. When we talk about infrastructure, we are looking at our economic cooperation assistance, just as we are doing in Asia. Infrastructure is a key to private business, especially in Nigeria and more generally in other African countries. And we are ready to provide Yen loans for that purpose. We have already started discussing with the Federal Government and the first Yen loan will be provided with innovative mechanism for polio eradication. What I mean by innovative mechanism is that Nigeria may be exempted from paying back the principal or may be even the interest too, if polio eradication campaign meets such criteria. The second one is in the field of power transmission. When you talk about power, it is not only power generation. What about the power transmission? In all this, inclusiveness is very important. We are also considering assistance in the area of water supply, small-scale industries, agriculture, health and so on.
On what he think about China’s coming to Africa and approach to Japan
What China is doing now is a global campaign against Japan. If you look at newspapers across the world, they are trying to advance their propaganda against Japan. This is a sad development. We believe that China and Japan are two big powers in Asia and we should cooperate rather than antagonising each other, to create common good for the region leading to prosperity and peace and security. But what China is doing is contrary, for example in the Senkaku Islands. One, China has never claimed ownership of the Island up until 1971. One year before 1971, a geographer conducted a geological survey and concluded that there is a possibility of oil reserve in that area. That triggered reaction from China. From 1895, Japan occupies that area under our administrative control and it was a peaceful occupancy according to international laws. What we are asking China is not to change the status quo by using force and coercion, but this is what they are doing with multiple intrusions into the area. The Chinese targetted missiles at our ships; this is almost an act of war and this is a kind of provocation
On our position to China, our door is open for dialogue, but we stick to the principle that if there should be an issue, we need to solve it in peaceful way in accordance with international law. This is the situation and our position.
On whether U.S. may go against the San Francisco Peace Treaty, which recognises Japan as the owner of the island
I don’t think so. Japan and U.S. have long-standing friendship and understanding about our policies and we are both democratic nations. Also, we shared almost the same strategic interests. I don’t think the U.S. will support China because it is against the stability of the region. The U.S. has a lot of stakes in the region, which also include Japan and other democratic nations in the region. There is no way the U.S. will sacrifice their interests and stability of the region for China.
Guardian News Website
On Nigeria-Japan’s relations
WE have long-standing relations with Nigeria. Our relationship started two months after Nigeria’s independence – that means about 54 years ago. To Japan, Nigeria is the most important African country. One characteristic about our relationship is that we have so much potential and we have spent more than 50 years trying to strengthen our ties with Nigeria. At the same time, there is much more than we can do in terms of political relations and you should also know that both nations are giants in their two respective continents – Nigeria in Africa and Japan in Asia. If we can cooperate and harmonise our agendas on international affairs, then we can make a difference in the management of international organisations like United Nations (UN).
In terms of economy, yes, we have potential, especially in the areas of how much we are complimentary. We have no resources, but we have a huge population and determined to work for a better life. We also have technology, know-how management and financial capability. We can make a great big difference. And what I’m doing now is to un-turn the stone to make this potential into reality. Another characteristic about our relationship is consistency in continuity.
If I talk about our economic cooperation, it started in the 60s and till now, we are here to assist Nigeria. Since mid-60s, there is no interruption, except under the regime of Sani Abacha. And so, this continuity in consistency of policies is one of the characteristics of our relationship. This is symbolised by taking international conference processes and our assistance in the field of polio eradication, which started about 13-14 years ago. Since this year and last year, there is a kind of new turning-point in our relationship, especially in the field of economic relations. TICAD V (the Fifth Tokyo International Conference on African Development) is there to endorse this strategy.
In a few words, we will like to introduce more Japanese companies in Nigerian markets and more investments, so that we can really promote a win-win relationship on a bilateral basis, especially on economic fields. In this connection, I will emphasise that we will do it by our unique way. What is our unique way? As our Prime Minister Abe stressed, the Japanese company investing in foreign countries also bring with them Japanese management philosophy. What is the essence of our management philosophy? It is human-centred approach. For example, the chief executive officer (CEO) of a Japanese company must make the company as strong as its employees. Japanese companies welcome and encourage initiative coming from the bottom and also try to make best use of resources available in the companies. We believe this would be beneficial for Nigeria. In fact, Japanese companies are interested in investing in Nigeria. Last year, we had five new investment decisions taking by Japanese companies and almost every day and every week, I receive new representatives of Japanese companies who want to come and visit Nigeria looking for business opportunities. We would try hard to promote this win-win relations in trade and investment. This is one of our biggest missions endorse by our government to bring about new vista to our relations.
On policy of sharing of experience and technology to tackle disaster management
After the Tsunami in 2012, we made it as part of our foreign policy to share our experience and technology with other countries to build up their capacity to resist and prevent natural disasters. We have been working hard on this. By March this year, there will another international conference, which will centre on the same issue.
On lack of assembling plants for Japanese cars in Nigeria
I must commend that Nigeria provides potential for a huge and promising automobile market. And I think sometime in the future, there should be investment by Toyota and other Japanese companies in this area. But at the same time, the manufacturing automobile is a kind of complicated work. It requires for example in your type of car, 20,000 different parts. Toyota’s mission for example is not to keep cars and parts in stock for a long time. When these 20,000 parts come in for assemble, of course the quality of the parts count to maintain the quality of the cars. Therefore, every Japanese automobile manufacturer looks for a type of assembling environment. For example, if Nigeria’s supporting industries are big and could provide such required goods on time with the required qualities. What about port clearance procedure and good road condition? You don’t have enough electricity and port clearance may not take seven days or two weeks and so on. Another question is whether Nigeria’s supporting industries will develop fast enough to provide the parts the plants will need.
If you look at this side of situation, the answer is very much clear. Beside the sad points, I welcome new automobile development plan that set a goal, which deserves to be pursue vigorously by Nigerian Federal Government. Because a real automobile plan takes 10 years or much more than 10 years; it is a long time project, not like the textile industry for example. I also think the goal is nice, but the Federal Government should be careful about how they will manage this process of 10 or 20 years. You can not just raise taxes and levies to stem import without considering other relevant and efficient measures. Also, you can’t force the manufacturing companies to embrace local contents without nourishing the parts industry. We think the goal is okay but this transition period should be managed very well and carefully. We should have a strategy and good plan of implementation; may be step-by-step implementation and also consistency of Federal Government’s policies. Japanese automobile companies insist on importance of consistency of policies.
Having said that one, one of my objectives for visiting Lagos is to travel to Ondo and see Elizade University of Technology being managed by Chief Ade Ojo. Another mission is to consult with representatives of Japanese companies involve in automobile manufacturing and trading to involve in our assistance measures towards the realisation of the new automobile industry. We will like to provide support, especially in the field of technical assistance and training of technicians needed for the automobile industry. This will take time, but we like that idea. I think it can draw general support from our Japanese automobile industries.
On arrangement between Nigeria and Nissan to build a model of a Nigerian car
I read it in the newspapers. It was a big news of course. But so far, while we and Japanese manufacturers are looking at those constraints, Carlos of Nissan looked at the brighter side and promised to commit his company to it. This is a great and nice news for me as ambassador of Japan. Also, we will like to make the plan a fruitful one; a sustainable one. You need not just a Nissan, you need Toyota and Honda. Our task is to create the enabling environment for those other manufacturing companies, including Nissan too, to successfully invest in Nigeria by way of setting up automobile assembling plant. But it is my position that to do so, it needs a lot of preparation; and a lot of attention should be paid to how we are going to implement the policy. We need to develop the human capability, small and medium-scale industries, management know-how should be shared, and we should go step-by-step.
On Japan’s displacement as No.2 industrialised economy
I am proud that we are still No.2 economy in the world. We encouraged China in the 80s and 90s to open up its economy into market economic system. China was the biggest recipient of our economic assistance. Well, they have forgotten that already and this is a fact. Economic size can be determine or influence by the size of the population. And in that sense, Nigeria could be of course not only the 20th economy of the world but one of the 10 economies.
Anyway, what happen to our economy is that we have been having difficulties for almost 20 years; 20 years of economic depreciation or bubble-bust. This was accompanied with rapid appreciation of yen and that make Japanese companies’ importing management very difficult. Our economic is also being affected by the ageing population and huge public debt which has been accumulated. But now, the trend is turning in the right direction. Japanese stock market shares have increase by almost 80 per cent and too high Yen rate has been adjusted. Prime Minister Abe since his re-election has taken two bold economic policies – one monetary policy and the other is fiscal policy. This to strengthen Japanese companies’ competitiveness by stimulating entrepreneurship. And now, he is emphasising on the roles of women within the country and also outside the country. Before, half of our human resources was not utilised and he tried hard by making commitment to create a society in which women shine. And so, Prime Minister Abe is taking series of deregulation, fiscal measures, as well as measures to educate our your population to make the best use of their talents in tune with modern society. So, we expect and hope that this growth would continue this year and you will see the result in 12 or 24 months. This is sustainable. And then, we will not only come back to No.2, but will come back to our strong competitive economy in tune with knowledge society.
On Abe’s commitment to double the Yen loan of equivalent of N1 billion to African countries during his recent trip
The commitment double Yen loan to Africa by Prime Minister Abe is in addition to TICAD V (the Fifth Tokyo International Conference on African Development). The commitment is new. In any case, firstly, TICAD V is a strategy to sustain and accelerate goals and secondly, it is designed to make the goals inclusive. And also very importantly, for the acceleration of goals, it should be driven by the private sector. The role of government is also important, which is to provide the enabling environment. And it takes two to tango. For example, there is a Nigerian side of responsibility to provide enabling environment for business and on our side, we will concentrate our efforts in improving infrastructure and human capacity development in Nigeria and other African countries. When we talk about infrastructure, we are looking at our economic cooperation assistance, just as we are doing in Asia. Infrastructure is a key to private business, especially in Nigeria and more generally in other African countries. And we are ready to provide Yen loans for that purpose. We have already started discussing with the Federal Government and the first Yen loan will be provided with innovative mechanism for polio eradication. What I mean by innovative mechanism is that Nigeria may be exempted from paying back the principal or may be even the interest too, if polio eradication campaign meets such criteria. The second one is in the field of power transmission. When you talk about power, it is not only power generation. What about the power transmission? In all this, inclusiveness is very important. We are also considering assistance in the area of water supply, small-scale industries, agriculture, health and so on.
On what he think about China’s coming to Africa and approach to Japan
What China is doing now is a global campaign against Japan. If you look at newspapers across the world, they are trying to advance their propaganda against Japan. This is a sad development. We believe that China and Japan are two big powers in Asia and we should cooperate rather than antagonising each other, to create common good for the region leading to prosperity and peace and security. But what China is doing is contrary, for example in the Senkaku Islands. One, China has never claimed ownership of the Island up until 1971. One year before 1971, a geographer conducted a geological survey and concluded that there is a possibility of oil reserve in that area. That triggered reaction from China. From 1895, Japan occupies that area under our administrative control and it was a peaceful occupancy according to international laws. What we are asking China is not to change the status quo by using force and coercion, but this is what they are doing with multiple intrusions into the area. The Chinese targetted missiles at our ships; this is almost an act of war and this is a kind of provocation
On our position to China, our door is open for dialogue, but we stick to the principle that if there should be an issue, we need to solve it in peaceful way in accordance with international law. This is the situation and our position.
On whether U.S. may go against the San Francisco Peace Treaty, which recognises Japan as the owner of the island
I don’t think so. Japan and U.S. have long-standing friendship and understanding about our policies and we are both democratic nations. Also, we shared almost the same strategic interests. I don’t think the U.S. will support China because it is against the stability of the region. The U.S. has a lot of stakes in the region, which also include Japan and other democratic nations in the region. There is no way the U.S. will sacrifice their interests and stability of the region for China.
Guardian News Website