Nigeria and UK Signs their First Expanded Trade Cooperation

Kemi Badenoch will sign a historic trade and investment agreement. The agreement will expand on the £7 billion in trade between the UK and Nigeria and open up new markets in the legal, financial services, and energy sectors.
Visit coincides with a partnership signed by UK energy company Konexa to assist Nigeria in making the switch to renewable energy.

In an effort to increase trade and investment and create new business prospects for both Nigerian and UK companies, the UK and Nigeria will today, Tuesday, February 13, establish a partnership.

The goal of the Enhanced Trade and Investment Partnership (ETIP), the first the UK has signed with an African nation, is to expand the existing robust commercial relationship between the UK and Nigeria, which reached a total of £7 billion in the year ending in September 2023.

The UK and Nigeria are forming a partnership to enhance collaboration and exports in various sectors, including financial and legal services. The partnership aims to facilitate lawyers practicing foreign and international law in each other’s jurisdictions, enhancing legal services collaboration. It also aims to foster collaboration in the film and media industry and encourage UK education providers to offer quality education in Nigeria. Nigeria, Africa’s largest economy, is predicted to reach the top 20 by GDP by 2035 and nearly double its population by 2050.

Kemi Badenoch said: “This partnership with Nigeria, the UK’s first with an African country will allow us to work together and seize the opportunities that lie ahead. Nigeria has one of the fastest growing economies in the world. UK businesses have already seen huge success here and I look forward to seeing how we continue to grow this relationship.”

In Nigeria, she visited the Charterhouse school, the first UK independent school in West Africa, and met with the Central Bank of Nigeria Governor and Nigerian Finance Minister to address trade barriers affecting UK businesses.

Nigerian Minister for Trade Doris Nkiruka Uzoka-Anite stated “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.”

TheCityUK International Managing Director Nicola Watkinson stated that “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.”

Business and Trade Secretary will witness the signing of a significant energy agreement between UK-based Konexa and Nigerian power generation company North South Power in Nigeria. The agreement will enable Konexa to supply Nigerian Breweries PLC with 100% renewable power, promote sustainable development, and invest over £14 million in infrastructure.

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 £120m in renewable energy generation, transmission, distribution, and battery storage solutions to help our customers transition away from the use of fossil fuel.”

The UK and Nigeria have made significant progress in resolving trade in the education and financial sectors, creating a more favorable trading environment for UK businesses. A recent resolution removed restrictions on Transnational Education investment worth £55 million over 5 years, allowing UK providers like Charterhouse to establish campuses in Nigeria. Additionally, a remittance resolution streamlined multiple foreign exchange windows into a single import and export window, making trade easier for UK businesses.

In the 12 months ending in September 2023, UK exports to Nigeria totaled £4 billion, a 3% rise at current prices over the 12 months ending in September 2022.

ONS is the source of trade statistics. Total commerce with all nations in the UK from July to September 2023.

The Propcom+ program, a UK government-led climate initiative, was introduced by the Foreign Secretary in August 2023. Its goal is to assist over 4 million Nigerians—50% of whom will be women—in adopting and scaling up sustainable agricultural practices that boost output and climate resilience while cutting emissions and safeguarding natural ecosystems.

An extensive Developing Countries Trading Scheme already exists in the UK, benefiting UK consumers and granting around 3,000 Nigerian products preferential access.
To make sure that firms on both sides profit and can take advantage of the opportunities this brings, working groups and business dialogues will be held.

A DBT Analytical Working Paper contains additional information on the process for eliminating market access barriers, such as limitations on foreign investment in Nigeria’s transnational education sector.