The United Kingdom (UK) government has signed a first-of-its-kind trade and investment partnership with the Nigerian government.
This was made known in a statement released by Ndidiamaka Eze, Senior Press & Public Affairs Officer at the Foreign, Commonwealth and Development Office, British Deputy High Commission, on Tuesday, February 13, 2024.
The statement mentioned that the signed Enhanced Trade and Investment Partnership (ETIP) would deepen the UK-Nigeria trade and investment relationship, unlocking new opportunities for growth and development in key sectors.
The Enhanced Trade and Investment Partnership (ETIP) is the first that the UK has signed with an African country. It is designed to enhance the already thriving trading relationship between the UK and Nigeria, which totaled £7 billion in September 2023.
“This 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 creatives industry. The visit by the Secretary of State comes a week ahead of a UK Government-led fashion and beauty trade delegation to Nigeria.
“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 3000 products, meaning that 99% 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 statement read in part.
It also noted that the UK and Nigeria have significant historical and economic ties, being vital partners. UK businesses are experiencing considerable success in Nigeria, known for its status as one of the world’s fastest-growing economies.
Secretary of State Kemi Badenoch signed the ETIP alongside her Nigerian counterpart, Nigerian Trade Minister Doris Nkiruka Uzoka-Anite in Abuja.
“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,” the statement quoted Badenoch to have said.
According to the statement, Nigeria’s Trade Minister said: “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.”
The statement further reads: “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.
“TheCityUK International Managing Director Nicola Watkinson said: “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.”
“Minister Badenoch will also 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 a number of areas. The $144m 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.
“The UK trade minister will in addition, witness the signing of a landmark 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% renewable power, promote sustainable development and clean energy adoption, and lead to infrastructure investments of over £14 million.
“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.”
It also recounted other significant gains from UK-Nigeria bilateral engagements:
“UK exports to Nigeria were £4 billion in the 12 months to the end of September 2023, an increase of 3% in current prices from the 12 months to September 2022.Of this, £1.3 billion were goods and £2.6 billion were services.
The ETIP will build on the UK’s Developing Countries Trading Scheme, which has already granted enhanced preferential access for over 3000 products, meaning that 99% of existing Nigerian exports to the UK by value will be duty free.
Tariffs have been removed on Nigerian goods in important non-oil export sectors such as cocoa butter and paste, sesame oil and clothing and apparel.
For example, 14% of tariffs have been removed on prepared tomatoes, 4.5% removed on sesame oil, 6.4% removed for woven cotton, 4.5% removed on cocoa paste, and 12.5% removed on plantains.
Working groups and business dialogues will take place to ensure businesses on both sides benefit and have access to the opportunities the ETIP presents.”
The statement added that following the Secretary of State’s visit, His Majesty’s Deputy Trade Commissioner for Africa, will be leading a fashion and beauty retail Trade Mission from the UK to Nigeria with 8 UK brands looking to form retail and e-commerce partnerships in Nigeria. These include the Boohoo Group, Kartel Watches and The Gel Bottle amongst others.
Konexa has a Generation and Trading license, TUoS (Transmission use of system) agreement with TCN and DUoS (Distribution use of System) agreement with DISCOS that enables them to wheel renewable electrons through transmission and distribution networks to supply customers, including investment in improving the network.
North South Power (NSP) is an indigenous power generation company with over 600MW of operating hydro already operating on the national grid (approx. 8% of national energy supply). The Power Purchase Agreement (PPA) being signed is for a new 30MW hydro asset that they are commissioning in December 2024.
The new deal will help supply Nigerian Breweries (Heineken,Kaduna), with 100% renewable power – using a combination of Hydropower, battery storage and a power management system – marking a significant step towards sustainable industrial operations in the region.” (Daily Times)
