The United Kingdom has signed a landmark partnership with Nigeria that is set to boost trade and investment and build on the already £7 billion strong UK-Nigeria trading relationship, with a target to unlock new opportunities in sectors such as legal, financial services and clean energy.
The UK’s Secretary of State for Business and Trade, Se Kemi Badenoch signed the deal in Abuja, saying Nigeria is an important growth market for the UK-based financial and related professional services industry.
“TheCityUK welcomes the MoU signing and looks forward to continuing engagement to increase market access and remove regulatory frictions,” she said.
According to her, the deal will pave the way for opportunities in sectors crucial to both economies such as finance and legal services as well as foster new collaborations in innovative areas like the creative industry. The visit by the Secretary of State comes a week ahead of a UK Government-led fashion and beauty trade delegation to Nigeria.
The ETIP also initiates further collaboration on the UK’s ambitious Developing Countries Trading Scheme (DCTS), launched last year which puts in place simpler and more generous trading terms for Nigeria and 36 other African countries.
Nigeria is a major beneficiary of changes introduced by the DCTS and will see tariff reductions on over 3000 products, meaning that 99% of existing Nigerian exports to the UK by value will be duty-free. Tariffs have been removed on Nigerian goods that promote value addition in important non-oil export sectors such as cocoa butter and paste, sesame oil and clothing and apparel. These changes will boost trade with the UK and support the Federal Government of Nigeria’s wider trade policy priorities.
Reacting, Nigerian Minister for Trade, Doris Nkiruka Uzoka-Anite said: “The UK is one of our long-standing strategic partners with whom we share strong ties, and it gladdens me that this relationship is set to deepen as we sign the Enhanced Trade and Investment Partnership.”
She believes the partnership will see Nigeria-UK relations move beyond one of shared history and strong ties to one of shared economic prosperity. From increasing market access and supporting our vibrant businesses to creating more jobs and accelerating greater investments in sectors of mutual interest.
The ETIP will help to build on the significant progress already made in resolving market access barriers in the education and financial sectors, which have led to a more favorable trading environment for UK and Nigerian businesses.
In addition, through this partnership, there is an opportunity to leverage UK and international investment from the City of London, which is home to the top financial and professional services.
UK exports to Nigeria were £4 billion in the 12 months to the end of September 2023, an increase of 3% in current prices from the 12 months to September 2022. Of this, £1.3 billion were goods and £2.6 billion were services.