Outlook for Nigeria-UK trade relations

With trade volumes between Nigeria and Great Britain hovering around £6 billion, the UK's trade envoy to Nigeria, John Howells, has expressed optimism that Britain's exit from the European Union will not diminish trade relations with Nigeria. In fact, he believes that the departure from the EU will enhance the importance of the UK's trade ties with Nigeria. Ikenna Nwosu, a council member at the Nigerian British Chamber of Commerce, shed light on the outlook for Nigeria-UK trade relations in a recent interview on CNBC Africa. Nigeria and Britain share a deep-rooted historical, economic, and social relationship dating back to the colonial era. Celebrating a century of bilateral ties in 2016, both nations have seen a dynamic exchange of goods and services over the years. Initially, Nigeria exported raw materials to the UK before transitioning to oil exports as a primary source of foreign exchange. However, Nigeria's over-reliance on imports in recent decades has led to a trade imbalance, with the UK exporting more goods to Nigeria. Nwosu emphasized the mutual benefits derived from the trade relationship and highlighted the importance of aligning the priorities of both governments to foster a sustainable economic partnership. Looking ahead, Nwosu outlined key strategies to bolster Nigerian exports to the UK, leveraging the sizable Nigerian diaspora in the UK. With approximately $2 billion in cash transfers flowing from the diaspora to Nigeria annually, there is a substantial market for Nigerian products in the UK. The Nigerian British Chamber of Commerce aims to triple business volumes between both countries over the next three years by implementing initiatives like the Lot of Green Plan, which focuses on promoting British exports to Nigeria through the diaspora. Additionally, targeted trade missions centered on agriculture aim to boost exports of Nigerian products to the UK. Quality standards have emerged as a critical factor influencing the flow of goods from Nigeria to the UK, particularly in the agricultural sector. To address this challenge, the Export Nigeria Club, a joint initiative of the Nigerian British Chamber of Commerce and the Nigerian Export Promotion Council, emphasizes quality control measures to meet UK standards. By ensuring that Nigerian exports adhere to quality requirements, the initiative seeks to enhance market access and promote sustainable trade relations between both countries. Brexit, the unexpected outcome of the UK's referendum to leave the EU, has added a layer of complexity to Nigeria-UK trade relations. While the full impact of Brexit remains to be seen, uncertainties loom on the economic and political fronts. Nwosu highlighted potential ramifications of Brexit on trade volumes, market access, and geographic dynamics involving Scotland, Ireland, and Wales. As England undergoes the process of exiting the EU, adjustments in trade strategies and market focus may be necessary to navigate the changing landscape of trade relations post-Brexit. In conclusion, the future of Nigeria-UK trade relations hinges on strategic alignment, quality compliance, and adaptability in the face of evolving global economic trends. As both nations gear up to commemorate the 40th anniversary of the Nigerian British Chamber of Commerce in 2017, discussions on enhancing bilateral trade cooperation and addressing challenges posed by Brexit will be at the forefront of their agenda.