The British High Commissioner to Nigeria, Richard Montgomery, has said that trade relations between Nigeria and the United Kingdom (UK) currently stands at about £7 billion.
Montgomery disclosed this during an interview with the News Agency of Nigeria (NAN) in Abuja on Sunday.
Breaking down the trade figures between Nigeria and the UK, the British High Commissioner to Nigeria revealed that the UK exports approximately £4 billion worth of goods and services to Nigeria, whereas Nigeria exports around £3 billion worth of goods to the UK, showcasing a relatively balanced trade relationship.
- “Trading by both countries is relatively balanced because the UK exports about £4 billion worth of goods and services to Nigeria while Nigeria exports to the UK about £3 billion worth of goods,” Montgomery said.
Montgomery noted a marginal 2% increase in trade volume between Nigeria and the UK. He emphasized that the recently signed partnership between both countries is expected to further boost trade and investment, leading to improved trade figures.
Montgomery noted that Nigeria stands to gain from the UK’s post-Brexit Developing Countries Trading Scheme (DCTS), which removes tariffs on thousands of products to promote free trade. He highlighted that Nigeria could export at least 3,000 tariff-free products to the UK under this scheme.
- “Nigeria can benefit and take advantage of a new post-Brexit trading agreement that the UK has put in place that is called the Developing Countries Trading Scheme (DCTS).
- “This scheme called the DCTS is one of the most generous schemes in the world in the sense that it removes tariffs on thousands of products from across the world to make free trade easier,” he said.
The British High Commissioner to Nigeria highlighted that Nigeria could enhance trade with the UK by exporting agricultural products like cashew, cotton, cocoa, vegetables, and timber. He also noted that sectors such as financial and legal services, education, and the creative industry could benefit from the Developing Countries Trading Scheme.
More insight
- Montgomery identified two main challenges for foreign businesses in the UK: lack of operational knowledge and stringent standards.
- He recommended the growth gateway, managed by the Department of Business and Trade, for guidance on exporting to the UK. This online resource offers sector-specific information, including a page for Nigeria.
- He also noted that meeting UK safety standards is essential for market entry, mentioning that the Standards Organisation of Nigeria (SON) is collaborating with UK standards bodies to facilitate certification for Nigerian products.
- Montgomery expressed optimism about increased UK-Nigeria trade, crediting Nigeria’s recent reforms such as fuel subsidy removal, tackling oil theft, and foreign exchange reforms. These changes, he emphasized, are attracting UK investors back to Nigeria, bolstered by the new policies of the Central Bank of Nigeria which improve investor confidence.
