United Kingdom Reduces Tariff on 3,000 Products From Nigeria, After Accepting Naira as Trade Currency

• The United Kingdom has reduced tariffs on 3,000 products imported from Nigeria
• The United Kingdom said this at a Forum in Abuja, Nigeria's capital on Tuesday, August 22, 2023
• The UK high commissioner to Nigeria said the development will boost trade relations between Nigeria and the United Kingdom

The United Kingdom has announced a reduction of nearly 3,000 products exported from Nigeria under the Developing Countries Trading Scheme (DCTC).

According to reports, the British High Commissioner to Nigeria, Richard Montgomery, said this in Abuja on Tuesday, August 22, 2023, at the sensitization workshop on the UK Developing Countries Trading Scheme organized in collaboration with the federal Ministry of Industry Trade and Investment and the Nigerian Export Promotion Council (NEPC).

Decision meant to boost trade relations between Nigeria and UK

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According to reports, the UK High Commissioner, represented by the Deputy British High Commissioner to Nigeria, Gill Atkinson, said a decision was taken to boost the trade relationship between the UK and Nigeria.

She said:

"The Developing Countries Trading Scheme (DCTS) benefits 46 countries, 31 of which are African countries, one of the most important of course is Nigeria.

He said Nigeria would benefit more than any country from the changes introduced by the programme. It will also see tariff reductions on over 3000 products from Africa's largest economy. Ninety-nine per cent of Nigerian exports to the UK by value will be duty-free tariffs promoting the value addition in crucial export items such as cocoa and paste and sesame oil, among others.

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Import duties reduced by 750 pounds per product

"The DCTS benefits the UK as well – it reduces import costs by over £750 million per year, helping to reduce prices and increase choice for UK consumers and businesses," she explained.

The permanent secretary of the Ministry of Trade and Investment, Evelyn Ngige, said the trade scheme will improve the volume of exports from Nigeria.

Naira now approved for Trade transaction payment in the UK

Legit.ng reported Nigeria's naira is now part of pre-approved currencies for financing transactions, the United Kingdom has announced.

This is coming after Nigeria's central bank abolished the country's multiple exchange rate system and effectively floated the naira.

The Export Finance Agency of the United Kingdom (UK) said the new development will make it possible for the country to offer financing for deals with Nigerian companies denominated in local money.

Source: Legit.ng