The trade volume between Nigeria
and the United Kingdom (UK) hit £7 billion in the year to September last year,
according to a statement yesterday by the British High Commission in Abuja.
The statement which announced the
signing of an Enhanced Trade and Investment Partnership (ETIP) with Nigeria by
the UK government, said it will boost trade and investment between the two
countries and unlock new opportunities for the businesses of the two countries.
Secretary of State Kemi Badenoch
signed the ETIP alongside her Nigerian counterpart Nigerian Trade Minister
Doris Nkiruka Uzoka-Anite yesterday in Abuja.
According to the statement, the ETIP
is the first the UK has signed with an African country and is designed to grow
the UK and Nigeria’s already thriving trading relationship, which totaled £7
billion in the year to September 2023.
This arrangement 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 such as
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 per cent of existing Nigerian exports to the UK by
value will be duty free. Tariffs have been removed on Nigerian goods which
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.
Speaking on the trade deal, Badenoch
said: “The UK and Nigeria are vital partners, with longstanding historical and
economic ties. UK businesses are already seeing huge success in Nigeria - one
of the fastest growing economies in the world.
“I’m delighted to be here to sign our new
enhanced partnership which will allow UK firms to export their world-class
goods and services more easily and expand their footprint in Nigeria.”
Her Nigeria counterpart,
Uzoka-Anite said the deal will further deepen trade ties between the two
countries. She 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.
“This 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 accelerate greater investments in sectors
of mutual interests.”
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 favourable
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.
TheCityUK International Managing
Director Nicola Watkinson said: “Nigeria is an important growth market for the
UK-based financial and related professional services industry and TheCityUK
welcomes the signing of the new ETIP.
"We look forward to
continuing our engagement through the working groups to increase market access
and remove regulatory frictions.”
During the visit, Badenoch will
also hold a groundbreaking ceremony at Abuja's first industrial park built by
UK-Turkish construction firm Zeberced Ltd to open its support services areas at
the site.
The UK government has been
supporting the firm in a number of areas. The $144million industrial park is
set to create 620 direct jobs and 1,650 indirect jobs and provide a base for
major firms to access central and northern Nigeria.
The UK trade minister will in
addition, witness the signing of a landmark energy agreement between UK based
energy firm Konexa and Nigerian power generation company North South Power
(NSP).
The agreement will enable Konexa
to supply Nigerian Breweries PLC with 100per cent renewable power, promote
sustainable development and clean energy adoption, and lead to infrastructure
investments of over £14 million.
Konexa CEO Pradeep Pursnani said:
“This is a very important milestone for Konexa, North South Power, Nigerian
Breweries, and all our investment partners. Over the last few years, Konexa has
been working on a disruptive model that matches customer energy demand with
renewable energy supply.
“We are looking forward to investing more than
£120million in renewable energy generation, transmission, distribution, and
battery storage solutions to help our customers’ transition away from the use
of fossil fuel.”
UK exports to Nigeria were £4
billion in the 12 months to the end of September 2023, an increase of three per
cent in current prices from the 12 months to September 2022.Of this, £1.3
billion were goods and £2.6 billion were services.
The ETIP will build on the UK’s
Developing Countries Trading Scheme, which has already granted enhanced
preferential access for over 3000 products, meaning that 99per cent of existing
Nigerian exports to the UK by value will be duty free.
Tariffs have been removed on
Nigerian goods in important non-oil export sectors such as cocoa butter and
paste, sesame oil and clothing and apparel.
For example, 14per cent of
tariffs have been removed on prepared tomatoes, 4.5per cent removed on sesame
oil, 6.4 per cent removed for woven cotton, 4.5per cent removed on cocoa paste,
and 12.5per cent removed on plantains.
Working groups and business
dialogues will take place to ensure businesses on both sides benefit and have
access to the opportunities the ETIP presents.
Following the Secretary of
State’s visit, His Majesty’s Deputy Trade Commissioner for Africa, will be
leading a fashion and beauty retail Trade Mission from the UK to Nigeria with 8
UK brands looking to form retail and e-commerce partnerships in Nigeria. These
include the Boohoo Group, Kartel Watches and The Gel Bottle amongst others.
Konexa has a Generation and
Trading license, TUoS (Transmission use of system) agreement with TCN and DUoS
(Distribution use of System) agreement with DISCOS that enables them to wheel
renewable electrons through transmission and distribution networks to supply
customers, including investment in improving the network.
North South Power (NSP) is an
indigenous power generation company with over 600MW of operating hydro already
operating on the national grid (approx eight per cent of national energy
supply). The Power Purchase Agreement (PPA) being signed is for a new 30MW
hydro asset that they are commissioning in December 2024
The new deal will help supply
Nigerian Breweries (Heineken,Kaduna), with 100per cent renewable power - using
a combination of hydropower, battery storage and a power management system -
marking a significant step towards sustainable industrial operations in the
region.
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