Nigeria, UK sign new Trade Agreement

Nigeria and the UK on Tuesday signed a new trade agreement to boost trade and investment between both countries.

Called the Enhanced Trade and Investment Partnership (ETIP), the agreement is also expected to also unlock new opportunities for UK and Nigerian businesses.

“The Enhanced Trade and Investment Partnership (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 totalled £7 billion in the year to September 2023,” the British High Commission Nigeria said in a press statement on Tuesday.

The agreement was signed by the UK Secretary of State for Business and Trade, Kemi Badenoch, alongside her counterpart and Nigerian Trade Minister, Doris Uzoka-Anite, in Abuja.

According to the High Commission, the 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 like the creative industry.

“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,” Ms Badenoch said.

Similarly, Ms Uzoka-Anite said, “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 greater investments in sectors of mutual interests.”

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 3,000 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.

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.

During her visit, Ms Badenoch will 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 several areas. The $144 million 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.

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She will also witness the signing of an 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 100 per cent renewable power, promote sustainable development and clean energy adoption, and lead to infrastructure investments of over £14 million.