Impact of Brexit on Nigeria

As the United Kingdom officially moves forward with its decision to exit the European Union, there are significant implications for countries around the world, including Nigeria. Vincent Wanna, Director of the Lagos Chamber of Commerce and Industry, recently joined CNBC Africa to discuss how Brexit will affect trade relations between Nigeria and the UK. With the triggering of Article 50 and the UK set to negotiate trade policies on an individual basis with countries, Nigeria finds itself in a position to strengthen its trade ties with the UK beyond just oil exports. While Nigeria currently trades with the UK in oil, the Nigeria Export Promotion Council is making plans to diversify and improve trade relations with the UK. This presents an opportunity for Nigeria to negotiate from a position of strength. As Vincent Wanna highlighted, the pressure is now on the UK to secure beneficial trade deals with individual countries as they navigate the complexities of post-Brexit trade negotiations. Despite the UK's status as the fifth largest economy in the world, negotiating trade deals is a time-consuming process that requires careful consideration and meticulous planning. As the UK grapples with balancing its trade relationships within the EU and beyond, Nigeria stands to benefit from a potential softening of the UK currency, which could boost Nigerian exports to the UK. Currently, the UK accounts for only 4% of Nigeria's trade, with the EU comprising a larger share at 8%. This imbalance highlights the need for Nigeria to strengthen its trade relations not only with the UK but also with other EU countries. As Brexit unfolds, Nigeria will closely monitor the outcomes of key elections in Europe, such as the recent Dutch and upcoming French elections, which could impact the UK's position in the global market. Additionally, Nigeria's focus on improving the ease of doing business and enhancing competitiveness will play a crucial role in shaping future trade negotiations with the UK and other countries. The Economic Partnership Agreement (EPA) between the EU and Africa has been a contentious issue, with concerns raised about its benefits for Nigeria. While negotiations are ongoing, Nigeria's emphasis on protecting key sectors like agriculture and food processing highlights a commitment to safeguarding domestic industries in the face of global trade dynamics. Vincent Wanna stressed the importance of prioritizing sectors where Nigeria has a competitive advantage to secure favorable trade deals. He underscored the significance of Nigeria's robust representation in trade negotiations, ensuring that the country's interests are protected and promoted on the international stage. Despite challenges in the negotiation process, Nigeria remains a key player in trade relations with the UK and other African countries. With a large market size and population, Nigeria holds significant leverage in trade discussions and can influence the outcomes of trade deals in its favor. As Nigeria explores avenues to diversify exports and strengthen key sectors, the country is poised to capitalize on emerging opportunities in the post-Brexit era. By aligning its trade strategy with its core strengths and competitive advantages, Nigeria can position itself as a formidable player in the global market. As Vincent Wanna aptly summarized, a strategic and measured approach to trade negotiations will be essential for Nigeria to secure the best possible deals with the UK and other partners. The road ahead may be challenging, but Nigeria's proactive stance and focus on key sectors will be instrumental in navigating the complexities of post-Brexit trade relations.