Richard Montgomery, British High Commissioner to Nigeria has pledged the UK government’s commitment to creating a balance of trade with Nigeria.
Montgomery made the pledge in an interview with the News Agency of Nigeria (NAN) in Abuja in the course of his visit to the Managing Director of the agency.
Trade balance is the difference between the value of exports and the value of imports of a country.
If exports exceed imports then the country has a trade surplus and the trade balance is said to be positive.
But if imports exceed exports, the country has a trade deficit and its trade balance is said to be negative
The British envoy, therefore, said that exploring oil alone would not create adequate jobs for Nigerians.
He pointed out that exploring the abundant opportunities in agriculture through investment in the sector would improve quality and productivity as well as create job opportunities.
He added that the exportation of agricultural produce would improve diversification and the livelihoods of Nigerians thus helping achieve a positive trade balance.
“That is where we get a win-win. What is in your interest is in our own interest as well.
“The present economic challenge is difficult; it is a tough time already with a lot of inflation and unemployment in Nigeria.
“One upside of the recent change in the foreign exchange policy is the recent devaluation of the naira. Nigeria has now suddenly become very much competitive in the international market.”
He commended the decision by President Bola Tinubu’s administration to revive the nation’s economy to have provided Britain the opportunity to grow its trade, investment, and economic relations.
He said Britain would back Nigeria’s economic reforms to ensure success and build on its economic relations to boost the trade balance between the two countries.
“Years ago, the UK bought more oil from Nigeria and the trade balance might have been the other way.
“But I think the UK buys less oil from Nigeria now. Nigeria’s oil is going to other countries.
“This brings me to the key question which is, what is the content of your export?
“We would like to help provide export opportunities for Nigerian businesses to the UK, partly as a component of your diversification strategy.
“Nigeria has done a fantastic job to diversify its economy, particularly in the South West of the country.
“I think there are lots of high-end and high-value potential in the creative industry, the artistic areas, and services.
“There is an opportunity for Nigeria in the future to develop goods and services that can be exported based on the digital economy with abundant agricultural land if committed to national standards on export.”
Montgomery told NAN that the UK recently inaugurated a new policy known as the Developing Countries’ Trading Scheme, which has been of immense benefit to Nigeria as it removed tariffs on lots of products from Nigeria.
“It is not huge, but significant and it is one of the most generous trade agreements from a wealthier G7-type country and Nigeria is one of the key potential beneficiaries. So that is the first step.
“There are other things we need to do because it is not just about tariffs, it is about exporters knowing how to export; who they can partner with in the UK, and whether they can meet the standards.
“We have put in place the Great Gate, an online one-stop-shop to give advice and we are hoping to help potential Nigerian exporters understand regulatory and quality issues that will enable them to export to the UK.”
“We will take the next step and enhance trade and investment.
“We have some work going on between the British Standard Institute and the Standard Organisation of Nigeria, we want to make sure both sides understand each other’s regulations.
“This will also help exporters get the certification they need to export to the UK and also import from the UK.
“There is huge potential in the agricultural sector, particularly products such as cocoa, sesame, and cashew.
“These types of products have huge demand in the UK, but lots of them come from Ghana and not from Nigeria.
“It is clear that Nigeria can do it. All we need to do is to smoothen the other to enable that export.
“We have an economic dialogue but we would like to convert that into an enhanced trade and investment partnership, and that will provide a basis to take forward this issue of greater trade.
“We can do more trade both ways and grow trade volume, but we also want a different quality of diversified trade and if we can hone Nigeria’s export potential, it would create more jobs and livelihoods.”