The United Kingdom has expressed strong support for Nigeria’s economic direction under President Bola Ahmed Tinubu, saying that the reforms introduced by his government are building investor confidence and positioning Nigeria as a major partner for British trade and investment. This was made known during a press conference held in Abuja on Wednesday, where the British High Commissioner to Nigeria, Dr. Richard Montgomery, commended the ongoing economic changes.
Montgomery described Nigeria as an increasingly important country in Africa, noting that the country’s growing population, recent economic reforms, and assertive international presence make it a key player in the region. He said that President Tinubu’s reforms are starting to yield results, even though some of them are tough on ordinary Nigerians.
He pointed out that inflation is still high, standing in the 20% range, but expressed optimism that things would improve in the months and years to come. “We are already seeing renewed interest from UK investors and businesses,” Montgomery said. He explained that the decision by Nigeria to remove fuel subsidy and unify exchange rates has brought more stability to the naira, improved foreign exchange reserves, and created predictability in the market. This, he said, is attracting more investments.
According to Montgomery, a recent World Bank economic report also showed that Nigeria’s revenue is rising, budget deficits are reducing, and state governments are receiving more money. He said federal allocations to states have doubled, allowing more funds for infrastructure and public services. He also noted that Nigeria’s GDP grew by 3.84% in the last quarter of 2024 and that the Purchasing Managers Index (PMI) is improving, showing business growth and job creation.
The UK currently trades goods and services worth £7.2 billion with Nigeria. This number is expected to increase under a new agreement called the Enhanced Trade and Investment Partnership (ETIP), signed in 2024. This agreement is meant to strengthen commercial ties between both countries.
Montgomery said the UK is focusing on areas like finance, technology, healthcare, energy, creative industries, agriculture, and education as key areas for growth in Nigeria. He revealed that over 3,000 Nigerian products no longer attract UK import tariffs. “We are determined to support Nigeria’s growth story and create win-win outcomes,” he said.
The UK High Commissioner also mentioned that the UK is promoting its own internal reforms like tax reduction, simplified regulations, and policies that support long-term investment. He added that the UK is ready to work hand-in-hand with Nigeria to promote lasting prosperity.
Also speaking at the event was Mark Smithson, the UK Country Director for the Department for Business and Trade (DBT) in Nigeria. He emphasized that Nigeria is the UK’s second-largest trading partner in Africa and its number one export market on the continent. He explained that the ETIP agreement was designed with input from both Nigeria and the UK and is aimed at solving challenges like customs delays and trade quotas.
Smithson listed eight focus areas under ETIP, including clean energy, education, agriculture, creative industries, finance, legal services, regulatory cooperation, and business development. He said the agreement is already working, with the UK-Nigeria Business Dialogue and a Creative Industries Working Group now active. This group is co-led by UK Trade Envoy Florence Eshalomi, a Member of Parliament.
He also named companies like Konexa and Stomaco that are helping Nigeria with clean energy, while Elephant Healthcare is digitising health services in Kaduna State. UK educational brands such as Charterhouse have also launched in Nigeria, with more expected to follow. Smithson revealed that over 90 Nigerian tech startups have registered to attend this year’s London Tech Week, showing the growing link between the two countries in technology.
Zahrah Audu, the Director-General of the Presidential Enabling Business Environment Council (PEBEC), also spoke at the event. She said the Nigerian government remains committed to making the country a competitive and transparent place to do business. Audu called the ETIP deal a strong platform to deepen trade ties and break down old barriers.
She highlighted that PEBEC has led over 200 reforms since its creation in 2016, including the Business Facilitation Act of 2022, the Regulatory Impact Analysis (RIA) Framework, and small claims courts to handle disputes for small businesses. Audu said her agency is now working with state governments to continue reforms using the $750 million State Action on Business Enabling Reforms (SABER) program, which is supported by the World Bank.
Although she admitted that challenges like infrastructure, access to finance, and negative perceptions still exist, she said efforts like the UK-Nigeria dialogue are helping to change how the world sees Nigeria’s business environment. She concluded by saying that partnerships between PEBEC and the UK Trade Office are already producing results that will benefit both citizens and businesses in Nigeria.
