The United Kingdom and Nigeria have signed an investment deal set to bolster economic cooperation and reduce commercial barriers between the two nations.
The agreement, known as an Enhanced Trade and Investment Partnership (ETIP), marks the first of its kind between the UK and an African country.
Business and Trade Secretary Kemi Badenoch finalized the pact during her visit to the Nigerian capital, Abuja, on Tuesday, signaling a new era of collaboration between the two nations.
While the deal does not entail substantial alterations in regulation or market access, it establishes working groups comprising government officials and private sector representatives.
These groups aim to identify and address trade barriers, stimulate investment, and unlock opportunities, particularly in the UK’s dominant services sector.
The agreement arrives as the UK navigates post-Brexit trade negotiations amid challenges in securing full free trade agreements.
With talks paused with Canada, protracted negotiations with India, and a federal-level deal with the US off the table, the UK seeks to forge deeper connections with international partners.
Total trade between the UK and Nigeria amounted to £7 billion ($8.8 billion) in the year leading to September 2023.
The ETIP sets the stage for Nigeria to work towards removing barriers hindering international legal practices and encourages collaboration in film, media, and education sectors.
Kemi Badenoch highlighted Nigeria’s rapid economic growth and emphasized the potential for further collaboration between UK businesses and Nigerian counterparts.
The agreement has already led to the removal of restrictions on transnational education investment and reforms in Nigeria’s foreign exchange market, streamlining processes for UK businesses seeking to trade with the country.
The pact signifies a significant milestone in UK-Nigeria relations, paving the way for deeper economic engagement and mutual prosperity between the two nations.