FDI from UK to Nigeria may rise to $4.5 billion by 2030
Foreign Direct Investment (FDI) from United Kingdom (UK) into Nigeria could rise from $1 billion to $4.5 billion by 2030.
The Executive Director/CEO of Nigerian Export Promotion Council (NEPC) Mr. Olusegun Awolowo disclosed this at a Nigeria-United Kingdom Trade Diagnostic Study programme in Abuja. The programme jointly organized by the Nigerian Export Promotion Council and the British High Commission created a platform for interactive engagements on the experience of Nigerian exporters to the UK.
According to Mr Awolowo, the FDI estimate of $4.5billion by 2030 could be achieved through strengthening of bilateral Trade and Investment Cooperation Agreement (TICA). He added, that there is no better time than now to seize this opportunity, as economic diversification is on the front burner of the present administration of President Muhammadu Buhari.
Highlighting Nigeria’s large diaspora population in the UK as one of the main reasons for the strong trade relations between the two countries, he said, “Nigeria should take advantage of the over 2 million Nigerian diaspora in the UK to increase our exports”.
In the same vein, Mr. Richard Ough Head of Economic Development Department for International Development (DFID) disclosed that the Economic Development Forum (EDF) between UK and Nigeria was launched as a commitment to support both economies to grow and prosper.
According to him “Nigeria is a real frontier economy with huge potential for trade and investment opportunities for British firms, and it is a key economic partner to the UK in Africa. Bilateral trade in 2017 was £4.2 billion and has grown an average of 7% per annum since 2008”.
He noted that the UK, through the Department for International Development (DFID) is exploring how Nigerian exporters can maximise the use of the existing trade preferences, including by supporting exporters’ dialogue with trade regulators through a Community of Practice as well as identifying market access barriers that could be removed to enhance trade between both countries.
“We are also keen to learn what more can the UKAid do to assist Nigeria’s non-oil export and its contribution to your country’s economic diversification”, he added.
Dr. Max Mendez-Parra, a Senior Research Fellow with Overseas Development Initiative (ODI), handled the technical session of the programme. The activity is meant to help both governments to identify specific market access barriers that exporters are facing as well as proffer solutions that can be operationalized to make export business grow, especially as it could lead to more trade with the UK.