Efforts to enhance cross-border business transactions between Nigeria and the United Kingdom are gaining momentum, as the Mayor of London’s office announces plans to address long-standing challenges that have hindered seamless financial operations between the two countries.
During a recent visit to Lagos, Deputy Mayor of London, Howard Dawber, emphasized the city’s commitment to strengthening economic ties with Nigeria—especially within the fast-growing tech and startup ecosystem.
“We know there are some country-specific regulatory hurdles that need to get sorted out, because they are holding people and businesses back,” Dawber said.
“A few people have said to me, it has been really difficult to get a bank account. And these are businesses earning millions of dollars, with real good track record that are working in other countries.”
Account Accessibility Key Concern for Nigerian Businesses
Dawber identified difficulty in opening bank accounts in London as a major obstacle for Nigerian businesses looking to expand operations.
He acknowledged that despite their credibility and financial success, many Nigerian firms face frustrating hurdles when attempting to set up cross-border banking channels.
He pledged to engage with UK regulators to explore technical solutions and flexible risk assessment mechanisms that could streamline banking access for legitimate foreign businesses.
“There’s a real synergy here, with London seeking to learn from Lagos’s rapidly growing tech sector,” Dawber noted.
A Two-Way Trade Partnership in Progress
The Mayor’s official promotional agency, London & Partners, is actively exploring opportunities to facilitate the entry of Nigerian businesses into London and to support British firms expanding into Nigeria. These efforts mark a strategic initiative to bridge regulatory gaps and enable mutual business growth.
Dawber acknowledged that Africa’s broader trade ecosystem faces numerous logistical and regulatory challenges, including payment friction, infrastructure deficits, and limited physical connectivity.
“The cross-border payment issue within Africa, as it relates to the UK, is something we can work on with the UK government, to ease transactions between Nigeria and the UK—specifically between Lagos and London,” he said.
Need for Greater Flexibility
He noted that while London prides itself on rule-based systems, there is a need for greater flexibility when applying global financial regulations in emerging-market contexts.
“We are very good at rules in London. We like rules, and we stick to them. And that’s great in terms of dependability, but sometimes, when there’s a global rule, we stick to it a little bit more firmly than everybody else,” Dawber added.
He concluded by stating that simplifying banking and regulatory frameworks would open up valuable trade channels, allowing Nigerian enterprises to scale internationally and boosting economic ties between the two nations.
