The United Kingdom has reaffirmed Nigeria’s continued eligibility for duty-free access on 99% of goods exported to the UK under the Developing Countries Trading Scheme (DCTS), a post-Brexit trade initiative aimed at boosting commerce with developing nations.
This assurance comes amid global trade tensions created by the recent announcement of sweeping tariffs by the United States.
According to a statement released on Friday by the British High Commission, Abuja, the DCTS, launched in June 2023, allows Nigeria and 36 other African countries to export over 3,000 products to the UK either duty-free or at significantly reduced tariffs.
The scheme is designed to support economic growth in developing countries by lowering trade barriers, simplifying export requirements, and making it easier for local businesses to tap into the UK market.
What this means
For Nigerian exporters, this means improved market access for a wide range of agricultural products such as cocoa, yam, tomatoes, plantain, shrimp, and sesame seeds.
Beyond raw goods, the scheme also covers value-added products like cocoa butter and paste, palm oil, cashew nuts, and cotton clothing, offering Nigeria a pathway to diversify and move up the export value chain.
- Speaking on the scheme, the British High Commissioner to Nigeria, Dr. Richard Montgomery, described Nigeria as a key partner in the UK’s global trade ambitions.
- He noted that Nigeria, as one of the UK’s most important partners in Africa, stands at the heart of the UK’s global trade ambitions.
“We want to strengthen the trade ties between our two great nations and unlock the power of sustainable and transformative growth in Nigeria and across emerging economies,” he said.
“A major advantage of the scheme is the reduction or elimination of duty tariffs on products like cashew nuts, cocoa, cotton, plantain, tomatoes, prawns, and sesame. This isn’t just about access to the UK market — it’s about building a fairer, freer global trading system that drives economic growth and job creation,” Montgomery stated.
Supporting Nigerian exporters
The DCTS is being implemented alongside the UK-Nigeria Enhanced Trade and Investment Partnership (ETIP), which focuses on addressing structural challenges in Nigeria’s export ecosystem.
The partnership includes collaboration with the Federal Ministry of Industry, Trade, and Investment (FMITI) to support Nigerian businesses in fully leveraging the scheme.
“Through ETIP, we are working with Nigerian authorities to remove bottlenecks and ensure more businesses can take advantage of the trade benefits available under the DCTS,” Montgomery noted.
More insights
The DCTS forms part of the UK’s broader strategy to deepen trade relationships with fast-growing economies around the world.
- In addition to Nigeria and other African countries, the UK has also signed new trade agreements with countries like India and the United States, signaling a global shift in its post-Brexit trade policy.
- For Nigeria, the DCTS presents a significant opportunity to increase non-oil exports, improve foreign exchange earnings, and drive inclusive growth by supporting local industries to compete on the global stage.
