Policy paper

Seventh ministerial meeting of the United Kingdom - Nigeria Economic Development Forum (EDF)

Published 26 April 2022

On 26 April 2022, the Minister for Trade Policy of the United Kingdom, the Minister of Industry, Trade and Investment of Nigeria and the Minister of State Finance, Budget and National Planning of Nigeria, held in person the 7th Ministerial meeting of the United Kingdom-Nigeria Economic Development Forum (EDF). The meeting was joined by the Nigeria’s Chief Trade Negotiator, a representative from the Nigeria Customs Service, the United Kingdom’s Trade Envoy to Nigeria and Her Majesty’s Trade Commissioner for Africa. Ministers confirmed the strategic importance of this dialogue for our bilateral economic relations and welcomed updates and progress in the following areas.

1. Both sides restated the commitment to enhancing the relationship between Nigeria and the UK and understand that a deep trade policy relationship is in the interest of both countries; because of this, and ahead of the current EDF Memorandum of Understanding (MoU) coming to a close in 2023, ministers agreed to establish an official level working group to explore the benefits of a future UK-Nigeria enhanced trade partnership. Both Nigeria and the UK agreed that such a partnership between their two countries should help encourage economic growth, job creation and greater two-way trade and investment, helping to support Nigerian and British businesses. Both the UK and Nigeria agreed to set out priority sectors they would like the working group to consider and to give feedback at EDF8. Nigeria requested that the enhanced trade partnership working group should consider discussing mutual recognition agreements for standards and professional services.
2. UK representatives confirmed that the UK will set out details of its new trade preference scheme, the Developing Countries Trading Scheme (DCTS), later in 2022 and appreciated the Nigerian input into the UK’s public consultation on the DCTS. Nigeria updated on the implementation of the Africa Continental Free Trade Agreement (AfCFTA), and welcomed the assistance from the UK on Phase II negotiations training for Nigerian government officials and developing a monitoring, evaluation and learning tool for the National Action Committee to track AfCFTA implementation. The UK agreed to look for continued ways to work with Nigeria to effectively implement the AfCFTA.
3. Nigeria updated on the implementation of the Nigerian National Quality Policy, including the constitution of a twenty-member Quality Council and its Terms of Reference. Ministers discussed the need to robustly put this policy into effect so that Nigerian products met the required standards for export. Nigeria welcomed the support the UK has provided for exporters since EDF6. This included the UK-Nigeria Tech Hub’s Trade Scaleup Bootcamp supporting Nigerian female entrepreneurs with export ready products or services, the virtual Exporters’ Dialogue to explain the requirements of UK markets, both delivered in partnership with the Nigerian Export Promotion Council (NEPC), and the support delivered by the now-completed Nigeria Improving Business Environment Programme, which included a demand assessment for quality services for four major value chains, and technical assistance to the Nigeria National Accreditation Service (NiNAS), a key provider of quality services, to gain international recognition as an accreditation body. The UK updated on support to Nigerian exporters of organic hibiscus, sesame and groundnuts through the LINKS ReGen farm initiative which will support 30,000 farmers over the next two years.
4. Ministers welcomed the case study from Social Lender, a Nigerian recipient of support from the UK Government’s Tech Hub and Global Entrepreneur programmes that provide mentoring and business support to non-UK based founders to help them expand their business from a UK global headquarters; this showed the benefits of partnering to support Nigeria’s dynamic fintech sector.
5. The UK looks forward to welcoming the signing of Nigeria’s e-customs concession agreement by the 17th of October 2022 as well as the start of the implementation of this project before the next EDF. The UK also welcomed confirmation from Nigeria that Nigeria Customs Service will be the lead agency to ensure cross-agency cooperation at ports. Nigeria welcomed the support offered by the UK through the HMRC-WCO-UNCTAD Trade Facilitation programme and through a study tour to be hosted before EDF8.
6. Both sides welcomed the establishment and initial work of the Finance and Financial Services technical working group and the update from the co-chairs, Scott Devine and Ambassador Shuaibu Adamu Ahmed. The working group agreed to prioritise market access barriers in two areas by forming two sub-groups, one focused on foreign exchange and remittances, and one on mobile money and fintech. The terms of reference of the respective sub-groups include a review of existing regulations, licensing, practices and policy frameworks, and using these as the basis for recommendations towards resolution of identified market access barriers in both countries.
7. Nigeria welcomed the work of the UK’s Financial Sector Deepening Africa (FSDA) programme, which has been supporting the Securities and Exchange Commission of Nigeria, the National Pension Commission and the National Insurance Committee, has run a sustainable insurance challenge fund and is committed to supporting Nigeria’s business associations in the fintech sector. Support through FSDA for social bonds and green bonds is being provided to Nigeria’s Debt Management Office and the Ministries of Finance, Budget and National Planning and Environment.
8. Both sides welcomed the update from the co-chairs of the Legal Services technical working group, Helen Grant MP and George Etomi, confirming that the group has discussed feedback on the respective legal services position papers as part of efforts to agree an MoU between the UK and Nigeria in this area. The group also held the first UK-Nigeria legal services capacity building session with the following themes: Building a Global Law Firm: Lessons from the UK - steered by the UK participants, and Understanding the Nigerian Legal Market - steered by the Nigerian participants. Looking forwards, Ministers welcomed that the working group will hold three meetings before EDF8 to discuss a) regulatory frameworks, b) recognition of qualifications and, c) technical barriers.
9. Both the UK and Nigeria welcomed the continued efforts to encourage UK trade and investment into Nigeria. Ministers noted the UK Export Finance (UKEF) offer, as presented by the UKEF Lead for West Africa, who explained that the full range of UKEF facilities are available to support UK exports to Nigeria and that UKEF is able to provide guarantees for financing in Nigerian Naira on a case-by-case basis, meaning that Nigerian companies buying from the UK can access finance in their own currency. UKEF has £1.5bn capacity to support new export business in Nigeria.
10. Ministers also welcomed the work of the Manufacturing Africa programme, which has supported twelve firms in Nigeria to seek foreign investment. When these deals reach financial close they will generate over $300 million in FDI for Nigeria and create over 5000 direct jobs. Of the firms supported one is a UK firm and two are UK-linked firms. Nigeria also welcomed the support of the LINKS programme, which is supporting 26 companies to obtain investment and is facilitating finance for 341 SMEs, and has also supported the Kano, Kaduna and Jigawa investment promotion agencies with training sessions on due diligence, and with investment brochures and sector selection. Ministers also welcomed the work of British International Investment (formerly CDC) in Nigeria, including the provision of a $100m credit line for First Bank Nigeria aimed at SMEs, with 30% dedicated to women-related SMEs.
11. Ministers welcomed the 5th Business Dialogue held on 6th April 2022 and noted that the issues raised at the previous Business Dialogue have been collated and forwarded to relevant Government Agencies for consideration and action. Ministers welcomed the removal of the Import Adjustment Taxation (IAT) as an issue raised and resolved through this dialogue. Ministers also discussed the frequent issues raised at multiple business dialogues – namely non-availability of forex for business operations, administration and application of custom duty charges for the importation of innovative pilot technologies to be used for R&D and testing (i.e. not for commercial purposes), and Bureau of Public Enterprise (BPE) consent required to progress a power sector deal.
12. Ministers discussed further cooperation on WTO issues to ensure the effective functioning of the global trading system, which relies on fair treatment of all nations and on fostering an environment of open and fair competition. The UK and Nigeria welcome the conclusion of the Services Domestic Regulation negotiations, and reiterated their continued commitment to making meaningful progress towards services liberalisation through the WTO. Nigeria is open to learning more on the Trade and Health Initiative.
13. Nigeria provided an update on its implementation of the revised Nationally Determined Contribution (NDC) and Climate Change Act. The UK looks forward to the inaugural meeting of the National Council of Climate Change. Both sides recalled the commitment at EDF6 to establish a cross-agency technical working group to consider and implement the recommendations of the technical analysis presented by the UK, on how customs duties and VAT removal, on stand-alone solar systems could support job creation, increase government revenue and energy access in Nigeria, thereby contributing to wider economic and climate objectives; and both sides agreed to prioritise this commitment. The UK Minister confirmed continued support to Nigeria to deliver on its admirable and ambitious NDC commitments. The UK Aid funded Manufacturing Africa programme has completed its Green Manufacturing Nigeria report which has highlighted seven key sub-sectors which will play a critical role in the country’s green transition and specific policy levers to enable the green sector’s growth. Nigeria welcomed the ongoing support from the UK through a range of climate related programmes, including UK PACT, UKNIAF, the Climate Finance Accelerator Programme, ACE-TAF and embedded climate finance advisors in the Federal Government. To mobilise significant private sector investment to support the energy transition needed to ensure more on-grid renewable energy is available and to meet the significant need for access to energy throughout Nigeria, both sides agreed on the importance of continuing to work to resolve issues relating to all current on-grid solar energy deals.
14. Both sides agreed on the importance of boosting links between the UK and Nigeria’s tech sectors. Both sides noted the benefits of the UK’s deep capital markets for Nigerian tech companies seeking investment, as well as the advantages of establishing in the UK for tech start-ups looking to expand internationally. Nigeria welcomed the UK’s ongoing support for Nigeria’s digital and tech sector, through the Digital Access Programme and the UK-Nigeria Tech Hub, and welcomed the opportunity to explore these links in more depth at the subsequent tech match-making event to be held on 27th April 2022. This event aims to promote more business-to-business partnerships between UK and Nigerian tech companies.
15. Ministers agreed to meet again in October 2022 in Nigeria for the eighth UK-Nigeria Economic Development Forum.