By Jeph Ajobaju, Chief Copy Editor
Financial instruments denominated in naira will soon be available on London’s financial market in the renewed bid by the United Kingdom to deepen economic ties with Nigeria.
The plan also includes expansion of the insurance sector, the digital economy, and creation of jobs in Nigeria on the fulcrum of regulation that would help sell British brands in Africa’s most populous country.
This followed a visit to Abuja by British Foreign Minister. Jeremy Hunt, who is on a tour to pitch greater UK diplomatic presence in Africa.
He advised Nigeria to improve the investment climate as Britain’s plan to leave the European Union (EU) presents a good opportunity to focus on bilateral ties.
“The bilateral relationship can improve growth in both countries. Britain has a big pool of funds that could be tapped for investment in infrastructure in Nigeria,” Hunt said.
He made the point in a communique issued after the First Economic Development Forum (EDF) of both countries in Abuja, which he signed alongside Industry, Trade and Investment Minister, Okechukwu Enelamah, who led the Nigerian team.
Hunt led the UK delegation.
The forum was launched in August 2018 by President Muhammadu Buhari and Prime Minister Theresa May to foster economic and development ties between Nigeria and the UK.
Nigeria records $90.9b foreign investment
“In the last three years, the government has allocated and disbursed over N3.5 trillion from the national budgets to infrastructure,” said Vice President Yemi Osinbajo, who supervised the signing of the communique.
“We are committed to improving Nigeria’s competitiveness and making our country one of the easiest places to do business globally.
“The Presidential Enabling Business Environment Council (PEBEC) under my leadership, has made significant progress in reducing bottlenecks, eliminating redundancies and increasing transparency across government ministries department and agencies.
“There is undeniable evidence that this administration is repositioning the Nigerian economy for true growth and shared prosperity.
“We have seen increased investor interest in Nigeria by the investment announcements that we track, with $90.9 billion of investment announcements in 2018, a 37 per cent increase over the $66.4 billion tracked in 2017.
“We are interested in these announcements, because we know that if we nurture them correctly, we can turn them into actual investments.”
Other areas agreed in the communique include
- Acknowledgment of improvement in the efficiency of Nigeria’s international airports, the UK’s ability to increase airfreight capacity of its national carriers, and enable Nigeria’s non-oil exporters to reach third market destinations via London.
- Need for extensive work to consult Nigerian and British business communities and identify joint workstreams and key actions to boost bilateral trade and investment.
- Commitment of the UK to provide more technical assistance to Nigeria’s efforts to diversify exports, attract investment, and create jobs by improving the business environment.
- Need to showcase Nigeria’s goods and services in British markets, and vice versa, and for more Nigerian exports to comply with global standards for better bilateral trade and investment.
Officials from both countries are expected to meet in London later this year for the second meeting of the EDF, prelude to an Africa Investment Summit to create conditions for more British investment in Nigeria, including in manufacturing and services.
UK’s £30m investment in Africa
Earlier this year, the UK pledged to pump £30 million into investments across Africa.
British Minister of State for Africa, Harriett Baldwin, said the UK’s partnership with African countries continues to help empower and upskill people across the continent, and the funding would boost those efforts.
“Our new partnership will also cement our relationship with the African Union, building on growing economic ties to forge new opportunities for young people and reinforce our close bonds,” Baldwin said.
The funding, which will be spread over three years, will be used to train peacekeepers in Kenya, assist free and fair elections, and support the next phase of negotiations for the African Continental Free Trade Area.
The partnership also allows the UK to support African-led ambitions with British expertise, to create more opportunities and more jobs.
