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Uk denounce Nigeria’s importation policies

Uk denounce Nigeria’s importation policies
Photo by Bruno Martins- Ask Nigeria

Operating businesses in Nigeria has become very difficult and challenging.

Ms. Catriona Laing, the British high commissioner in Nigeria, said in an interview on Saturday that the UK government has concerns about some of Nigeria’s policies, including a recent prohibition on the import of certain products. The United Kingdom has therefore urged that the Nigerian government implement adjustments to these regulations, which are seen as a factor inhibiting the country’s economic growth and development. It said this was essential for increased output and greater exports in the country.

The consequences of such a prohibition are mixed. By taking a close look at the prohibition, Ms. Laing asserts that outweighing the adverse effects has made it difficult to operate a business in Nigeria. She argues that the prohibition on importation in the nation would have a significant impact on Nigerians involved in exporting due to the high cost of transportation and energy, which in turn affects the production rate. It has been argued that the structure of Nigeria’s policy formulation process is counterproductive and that it should be restructured so that the country’s exports are less restricted.

UK to support Nigeria in producing standard products.

Furtherly, she attributed the challenges faced in operating business in the country and the reduction seen in the UK’s export to Nigeria to the poor market environment and policies in Nigeria. Thus, she urged for investment in mutual ways that will also enable the UK government to access Nigeria’s market with trade investment. Also, the Nigerian government has been advised to enhance its product standard so as to enable the country to reach a peak export rate where almost all of its goods will be exported to the UK duty-free by 2023.

Months ago, the UK government announced the Developing Countries Trading Scheme (DCTS), where 99 percent of Nigerian goods will be granted free authorized entry into the UK duty-free by 2023. Ms. Laing said producing standard products for export would enable Nigeria to achieve amply from the UK’s new trade scheme in 2023, enabling the country to balance its trade with the European country. As Nigeria’s strategic partner, she said the UK will render its support to Nigeria in its quest to improve the standards of its commodities for export.

Nigeria to benefit 99 percent duty-free on its exports to the UK.

Similarly, in a post-Brexit era, the UK is keen to ensure access to its market is available as it is set to launch the developing country trading scheme by 2023, which is said to as well impact Nigeria with 99 percent duty-free on its exports to the UK. For instance, cocoa butter, which will have had to pay £180,000 in tariffs, will be free. For Nigeria to boost its product standard and reach non-tariff barriers, there is a need for sanitary and phytosanitary standards if the country is exporting agricultural products.

Ms. Laing assures that the United Kingdom government would continue pushing for Nigeria to meet the product standards. FDI flows from the UK to Nigeria were £5 billion, whereas FDI flows from Nigeria to the UK totaled merely £780 million. Recent data released by the UK government shows that British exports to Nigeria reached £3.3 billion in Q2 2022, an increase of £856 million, or 35.4%, over the four quarters ending in Q2 2021.

Country is recorded as the UK’s 42nd most significant trading partner.

While Nigerian imports amounted to £2.2 billion, rising 101.4% or £1.1 billion over the four quarters to the end of Q2 2021. In the four quarters to the end of Q2 2022, Nigeria was the UK’s 42nd biggest trading partner, contributing 0.4% of total UK trade. The UK’s outward stock of foreign direct investment (FDI) in Nigeria was £5.1 billion in 2020, representing 0.3% of the overall UK outward FDI stock. While the total inbound stock of foreign direct investment (FDI) from Nigeria into the UK was £780 million.


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jdpumping
jdpumping
2 months ago

It’s truly a Herculean task to operate a business effectively in Nigeria,the problems mitigating the growth of such businesses are much.The government need to do more for sustainance and growth of business.

Adeolastan
Adeolastan
2 months ago

It is very very hard and ridiculous to do business in Nigeria now because the government doesn’t care about her citizens progress.But this is a good news from the UK government to Nigeria,this gesture will really help Nigerian in term of generating income to the economy growth.

Abusi
Abusi
2 months ago

One of our problem is that our economic policies doesn’t match our economy. The importation of goods have been affected by the economic policies which is not helping businesses to thrive. We need to change our policies.

Ultra0711
Ultra0711
2 months ago

Although the government had it reason for imposing such ban but the major interest should also be put into consideration just as the UK government had mentioned.

Godsewill Ifeanyi
Godsewill Ifeanyi
2 months ago

There is consequently requested that the government of Nigeria make modifications to these regulations, which are considered as a factor that is preventing the expansion of the country’s economy.

Adesanyaj72
Adesanyaj72
2 months ago

There would be unintended repercussions from such a ban. It is challenging to run a business in Nigeria due to the prohibition and the resulting negative impacts that have been carefully considered.

Chibuzor
Chibuzor
2 months ago

The unfavorable market environment and policies in Nigeria are to blame for the decline of the United Kingdom’s exports to the country.

Haykaylyon26
Haykaylyon26
2 months ago

Business environment and economic policies is one of our major problem the importation of goods is not help our business to grow well and down our economy policies also

Taiwoo
Taiwoo
2 months ago

If Nigeria is going to be exporting agricultural goods, then the country absolutely needs to have sanitary and phytosanitary standards in place. Only then will Nigeria be able to improve its product quality and overcome non-tariff barriers.

Kazeem1
Kazeem1
2 months ago

It is wonderful that the United Kingdom, as Nigeria’s strategic partner, will lend its support to Nigeria in the country’s effort to improve the quality of its exports before they are exported.

Nwachukwu Kingsley
Nwachukwu Kingsley
2 months ago

The Nigerian government has been advised to enhance its product standard so as to enable the country to reach a peak export rate where almost all of its goods will be exported to the UK duty-free 

Hassan Isa
Hassan Isa
2 months ago

A major issue is that our economic policies aren’t well suited to the state of our economy. Due to economic policies, imports have decreased, making it harder for firms to succeed.

SarahDiv
SarahDiv
2 months ago

The problem that is affecting businesses in Nigeria have always been the horrible government policies that are unfavorable. For businesses to thrive in Nigeria government needs to look into all their policies.

Tonerol10
Tonerol10
2 months ago

Operating businesses in Nigeria has become very difficult and challenging. Government policies on business has really affected so many Businesses in Nigeria. So many challenges in Nigeria

Christiana
Christiana
2 months ago

As a result of Nigeria’s negative market environment and policies, British exports have fallen.

Tolaniiii
Tolaniiii
2 months ago

It’s ridiculously hard to do business in Nigeria since the government doesn’t care about its citizens. This is fantastic news from the UK government to Nigeria, as it would help boost the country’s economy.

Bola12
Bola12
2 months ago

Poor government policies that are hostile to businesses have always been a concern in Nigeria. For Nigeria’s business community to flourish, the government should examine all of its policies.

theApr
theApr
2 months ago

Due to the high cost of transportation and energy, which in turn affects production rate, the nation’s import ban will have a substantial impact on Nigerians engaged in exporting.

Remi1
Remi1
2 months ago

By launching the developing country trading plan by 2023, which is expected to have an impact on Nigeria with 99 percent duty-free exports to the UK, the UK is eager to ensure that access to its market is available.

Iyanu12345ogg
Iyanu12345ogg
2 months ago

since the government doesn’t care about its citizens. This is fantastic news from the UK government to Nigeria, as it would help boost the country’s economy.

DimOla
DimOla
2 months ago

Government policies are killing many businesses in Nigeria.This has led UK to denounce Nigeria*s importation policies. Government needs to look into their policies and review them.

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