UK Signs First Enhanced Trade Partnership in Africa With Nigeria

On Tuesday, it was reported that Nigeria and the United Kingdom engaged in a contract to enhance their trading and investment partnership, creating a more robust trade and investment relationship between the two countries.

This was disclosed by Kemi Badenoch, the Secretary of State for Business and Trade in Foreign, Commonwealth and Development Office, alongside the Minister of Trade and Investment, Mrs Doris Nkiruka Uzoka-Anite, who signed the partnership.

This is reportedly the first enhanced trade and investment partnership the UK has signed with any African country. It is believed to grow the trading relationship between both countries. The contract is believed to be valued at a whopping £7 billion as of September 2023.

According to the UK Foreign, Commonwealth and Development Office, the ETIP will boost opportunities in sectors crucial to both economies, such as finance and legal services, as well as foster new collaborations.

Mr 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, allowing UK firms to export their world-class goods and services more easily and expand their footprint in Nigeria.

While Uzoka-Anite said,

• The UK is one of our longstanding 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 accelerating more significant investments in sectors of mutual interest.

The ETIP is believed to foster collaboration on the UK’s ambitious Developing Countries Trading Scheme, launched last year, which puts simpler and more generous trading terms in place 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 3,000 products, meaning that 99% of existing Nigerian exports to the UK by value will be duty-free.

Tariffs have been removed on Nigerian goods, promoting value addition in important non-oil export sectors such as cocoa butter and paste, sesame oil, clothing, and apparel. The PUNCH reported that these changes will boost trade with the UK and support the Federal Government of Nigeria’s wider trade policy priorities.

Badenoch, who started a three-day visit to Nigeria on Sunday, is expected to meet with the Federal Government and some state governors to look out for more ways to improve trade activities, from education to infrastructure and energy projects, with the goal of creating thousands of jobs.