British High Commissioner to Nigeria Richard Montgomery stated on Sunday that trade relations between Nigeria and the United Kingdom have reached £7bn.
Montgomery announced in an interview with the News Agency of Nigeria (NAN) in Abuja that the two nations have signed a new agreement on improved trade and investment partnership.
The agreement aims to enhance collaboration in important sectors such as agriculture, creative industries, legal services, financial services, and education.
At present, the UK exports about £4bn worth of goods and services to Nigeria, while Nigeria’s exports to the UK total approximately £3bn.
The British envoy anticipates that the new agreement will boost trade volumes and strengthen economic ties between the two nations.
“Both countries trade is relatively balanced, with the UK exporting about £4bn worth of goods and services to Nigeria, and Nigeria exporting about £3bn worth of goods to the UK,” he said.
“We need to do more because compared to the previous year, last year's trade volume did not show much growth, only about a two per cent increase.
“Recent years have seen changes in trade, and the goal of our enhanced Trade and Investment Partnership is to increase trade and investment between both countries and raise these figures,” he explained.
He mentioned that Nigeria can benefit from a new trade agreement called the Developing Countries Trading Scheme (DCTS) that the UK has established following Brexit.
He noted that DCTS removes tariffs on thousands of products worldwide to facilitate free trade, making it one of the most generous schemes globally.
The envoy added that Nigeria has around 3,000 tariff-free products it could export to the UK, especially in agricultural exports such as cashew, cotton, or cocoa from the middle belt.
He mentioned, “There are numerous commercial farmers involved in vegetables, which can be processed, as well as timber. We believe there is significant potential for commercial agriculture in Nigeria's future.
“Nigeria has the land and the people. The new trading scheme should be an opportunity for Nigeria. We can do more in financial and legal services.”
Montgomery revealed that new technologies are entering the financial services sector, greatly improving it.
He also expressed confidence that the UK will increase trade with Nigeria, citing the country’s bold reforms.
Montgomery commended the Nigerian government for removing the “crippling fuel subsidy,” efforts to combat oil theft, and foreign exchange reforms.
He observed that the previous foreign exchange system had discouraged investors due to challenges in accessing and transferring funds across borders.
