The UK Government has rated Nigeria as a large prospective future market for trade and investment, given both the economic reforms and the population growth in Nigeria.
The British High Commissioner to Nigeria, Dr. Richard Montgomery, stated this in Abuja, Nigeria, at a Press conference on UK- Nigeria Economic Growth: Driving Sustainable Trade Investment.
Dr. Montgomery, also explained that Nigeria, for the UK, is an anchor country in the African region in playing an increasingly assertive role on the world stage, noting that November 2024, last year, “our two foreign secretaries, our two foreign ministers, signed a strategic partnership that includes collaboration on security and defence, on justice and home affairs issues, on foreign policy dialogue, and on an enhanced trade and investment partnership.”
“The UK sees growing opportunities in Nigeria for a combination of reasons, but the main ones are the exciting economic reforms underway. These economic reforms are paying off, and these economic reforms are now making Nigeria more investable. And I realise that some of these reforms for ordinary people are painful.
“Inflation is still high, it’s in the 20% territory, the mid-twenties, and it’s going to take time to bring that rate down, but we can see very good prospects for that rate coming down in the coming months and years.
“And we agree with the report, the main messages of which are that Naira is now more stable and predictability enables investment. Foreign exchange reserves are up, significantly up, so that makes Nigeria less risky. There’s been a very big increase in government revenue collection, not by raising tax haves but by tax administration and management,” he explained.
Speaking on UK economic reforms, the High commissioner noted that Nigeria’s reforms are working, making Nigeria more investment-friendly, same as the UK.
He explained the connection between the reforms going on in Nigeria and the reforms and advantages in the UK.
“We have a roadmap for building on the cooperation between our countries called the Enhanced Trade Investment Partnership, ETIP. And as I mentioned, it’s a key pillar of our strategic partnership that we signed last year.
“It’s based on some prior commitments and principles which we announced earlier last year. For example, the UK is an open trading economy. We have removed, as in zero tariffs, on nearly all over 3,000 products from Nigeria. So there are no tariff barriers for Nigerian exporters to the UK under a scheme called the Developing Countries Trading Scheme.
“And we really want to encourage Nigerian exports to the UK because that improves consumer choice. It builds incomes in Nigeria and improves the Nigerian economy and turns it into a bigger market for everybody”, he noted.
He added that the creative economy industry is a huge area of shared comparative advantage, that needs to be harnessed.
“Nigeria’s creative industries are really growing. They’re gaining global reach, film, music. The UK is one of the biggest production and market entry points for the global creative industries. And we want to harness that growth coming out of Nigeria, where we think there is a mutual win-win.
“Now, the reforms underway in the UK are about creating more predictability and lower costs for investors. Investors from all over the world, including from Nigeria. The UK is actually looking a lot more predictable in terms of policy certainty. Simply because of that predictability, we have unlocked billions of investment into the UK, particularly in growth sectors like technology, infrastructure, energy, and transport companies. And business investment in the UK is now at a 20-year high.”
Second Largest Trading Partner
Also Speaking, the Country Director, UK Department for Business and Trade in Nigeria, Mark Smithson, said that Nigeria is the UK’s second largest trading partner, noting that the signed ETIPs underscores the importance of Nigeria.
“The UK and Nigeria share a dynamic, long-standing and multidimensional trade relationship. It is currently valued at £7.2 billion. And this partnership is a cornerstone of our broader bilateral ties, driving prosperity, innovation and collaboration. Nigeria is the UK’s second largest trading partner and the UK’s largest export market, which underscores Nigeria’s strategic importance.”
“The Enhanced Trade and Investment Partnership, a co-created document designed to foster inclusive growth aligns with Prime Minister Thama’s growth agenda and with His Excellency President Tinubu eight-point economic agenda.
“It seeks to support job creation, economic expansion and business environment reforms. It enhances collaboration between public and private sector, promotes technical cooperation and addresses non-tariff barriers, such as quality standards, quotas, import licenses and custom complex procedures to unlock sustainable trade and investment opportunities.”
Business-Friendly Environment
On the Nigerian side, the Director-General, Presidential Enabling Business Environment Council, PEBEC, Sarah Oduh, stressed that Nigeria is making effort to create a more transparent and business-friendly environment for investors.
“Since its inception in 2016, PEBEC has spearheaded over 200 business-friendly reforms to remove bureaucratic barriers, enhance transparency, and improve the competitiveness of business in Nigeria. We understand that our work does not stop here, which is why we are now working aggressively to ensure that these reforms are implemented and have tangible benefits and impacts to businesses that operate in Nigeria.
“We have introduced several key reforms aimed at strengthening investors’ confidence and improving the flow of trade. Now with the Regulatory Impact Analysis Framework, it means that before our agencies, departments, or ministries can pass any new policies that affect business people, they must go through some very rigorous processes and the reports must be passed through court”, she said
The UK and Nigeria share a dynamic, long-standing and multidimensional trade relationship that is currently valued at £7.2 billion. Both countries have pledged to strengthen the trade partnership.
Hauwa Abu
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