UK-Nigeria Trade Hits £7.2 Billion as New Export Scheme Opens Market for Nigerian Goods
Tariff-Free Access for Over 3,000 Nigerian Products
The United Kingdom has introduced a groundbreaking tariff-free export scheme covering more than 3,000 Nigerian products, marking a significant expansion of bilateral trade ties between the two nations. This development comes as the UK-Nigeria trade relationship reaches £7.2 billion in value.
Strengthening Economic Partnerships
British High Commissioner to Nigeria, Richard Montgomery, emphasized the strategic importance of Nigeria as the UK’s second-largest trading partner in Africa during a recent briefing in Abuja. “Nigeria is the UK’s largest export market in Africa, underscoring its strategic importance,” Montgomery stated.
The Enhanced Trade and Investment Partnership (ETIP), signed in February 2024, represents the first such agreement between the UK and an African country. This landmark framework aims to:
- Foster inclusive growth
- Support job creation and economic expansion
- Address non-tariff barriers like quality standards and customs procedures
- Promote technical cooperation between public and private sectors
Key Export Opportunities for Nigeria
The UK’s Developing Countries Trading Scheme (DCTS) offers significant benefits for Nigerian exporters, including:
| Product | Tariff Reduction | Export Potential |
|---|---|---|
| Cocoa products | 2.5-4.5% removed | £50m annual exports |
| Cotton textiles | 6.4% removed | Key opportunity sector |
| Fertilizers | 6% removed | £650m global exports |
| Plantain | 12.5% removed | £25m UK imports |
Addressing Challenges and Improving Efficiency
Montgomery acknowledged challenges including regional insecurity and visa processing issues, while Princess Zahrah Audu, Director General of PEBEC, highlighted efforts to improve Nigeria’s business environment:
- Implementing mystery shopping of government agencies
- Promoting automation of services
- Reducing cash transactions in government processes
- Improving export processing timelines
Audu emphasized: “We’re trying to make dealing with regulators or government generally a lot more efficient. We want to limit human interaction and make payments more transparent.”
The UK’s trade initiative comes as Nigeria shows signs of economic recovery, with the World Bank reporting positive indicators that Montgomery described as encouraging for British investors.
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