The current trade relationship between Nigeria and the United Kingdom is valued at approximately seven billion pounds sterling.
This was revealed by the British High Commissioner in Nigeria, Dr Richard Montgomery. He stated that both nations have recently signed a new agreement to boost their trade and investment partnership, focusing on various sectors.
These sectors include agriculture, the creative industry, legal, financial services, and education. According to Montgomery, the trade balance between the UK and Nigeria is relatively even. The UK exports goods and services worth about four billion pounds sterling to Nigeria, while Nigeria exports goods worth about three billion pounds to the UK.
He emphasized the need for increased trade volume, as there was only a two per cent increase in the previous year compared to the year before. The goal of the enhanced trade and investment partnership is to stimulate trade and investment between both countries and improve these figures.
Montgomery highlighted the benefits Nigeria could gain from a new post-Brexit trading agreement that the UK has implemented, known as the Developing Countries Trading Scheme (DCTS). This scheme is globally recognized for its generosity as it eliminates tariffs on thousands of products worldwide, facilitating free trade.
Having toured various parts of Nigeria, the envoy noted that Nigeria has at least 3,000 products that could be exported to the UK tariff-free. He mentioned that the enhanced trade investment partnership, signed in February, aims to attract more investment to Nigeria’s agricultural sector.
Montgomery suggested that Nigeria could enhance its trade with the UK by exporting more agricultural products such as cashew, cotton, or cocoa from the middle belt. He also mentioned the potential for commercial agriculture in Nigeria, given the availability of land and manpower.
He acknowledged the emergence of new technologies in the financial services sector and Nigeria’s vast creative industry, which the UK is keen on. He expressed hope for promoting these areas through partnerships, especially in London, a hub for the creative industry.
Montgomery pointed out two challenges foreign businesses might face in the UK: a lack of knowledge on how to conduct business and the need to meet certain standards (non-tariff barriers to trade). He recommended the growth gateway run by the Department of Business and Trade as a valuable resource for anyone intending to export to the UK.
He further explained that to sell products in the UK, businesses must meet safety standards and obtain certification. He revealed that the Standards Organisation of Nigeria (SON) is collaborating with the UK standards organisation to reconcile standards and facilitate certification for the UK market, thereby easing trade.
Montgomery concluded on an optimistic note, expressing confidence that the UK would increase trade in Nigeria due to the bold reforms by the Nigerian government.
