The United Kingdom (UK) government has advised the Nigerian government to improve the standards of its products to enable the country export 99 per cent of its goods to the UK tariff-free by 2023.
British High Commissioner to Nigeria, Catriona Laing, said to the News Agency of Nigeria (NAN) in Abuja.
NAN reports that on Aug. 17, the UK government announced the Developing Countries Trading Scheme (DCTS) where 999 per cent of goods from Nigeria will be eligible to enter U.K duty-free by 2023.
Laing said that producing standard products for exports would enable Nigeria to benefit from the UK’s new trade scheme in 2023 which would enable the country balance its trade with the UK where Nigeria is at a deficit.
This is also as Laing lamented the poor market environment and policies in Nigeria which had affected the ease of doing business in the country and caused a reduction in export volume and trade balance with the UK.
She however noted that as a strategic partner of Nigeria, the UK government was also supporting Nigeria to meet the product standards for export.
“Well, there is a number of things that needs to happen. So I think in order to export successfully, on our side, what we need to do is to make it as open as possible.
“We as a country, particularly post Brexit, we want to ensure that access to our market is very open and that is why we are about to introduce the developing country trading scheme, which will apply to Nigeria; it will come in early 2023.
“It means for Nigeria, 99% of your exports to the UK will be completely tariff-free; so no trade barriers.
“Say if you’re a cocoa butter exporter, for example, in the old world, you would have had to pay £180,000 in tariffs; now that will be done and that we think will help.
“But there are also what we call non-tariff barriers and this is where Nigeria does need to up the game a little bit; so that means reaching product standards, sanitary and phytosanitary standards if you are exporting agricultural products.
“And we have quite strict rules to ensure you know that animals and plants are meeting these high standards to prevent any pandemic spreading and so on.
“We are also supporting Nigeria to be able to meet those product standards.”
On creating an enabling environment to boost production, especially for exports, Laing also advised that the Nigerian government amends some of its policies which have not been favourable.
“I think the third thing is your policy environment. To be honest, it is quite hard to do business in Nigeria doing business here is hard work; energy costs a lot, you know, road transport costs a lot and productivity generally is pretty low.
“So some of the barriers your own governments put into place, for example, the ban on imports does not actually help Nigerians who are trying to export because you need to import in order to export.
“And I heard the Vice-President actually speak about this very eloquently at the recent ministerial retreat.
“I think Nigeria, to be honest, has made some mistakes on its own policy. So all of those sorts of policy environment need to be right and then we need to be open to your exports.
“I will encourage investment both ways and that is exactly what we want to do because it’s not a zero-sum game.
“If you can export good products to us, we are delighted and equally we want to be able to access your market both through trade but also through investment,” Laing said.
NAN reports that according to a UK government recent report, exports from UK to Nigeria in the second quarter of this year stands at £3.3billion while imports from Nigeria is £2.2billion.
Foreign Direct Investment inflow from UK to Nigeria is currently at £5billion while from Nigeria to UK is just £780million.
