UK Commits to 99% Duty-Free Access for Nigerian Exports Under New Trade Scheme

The United Kingdom has confirmed that Nigeria will continue to benefit from duty-free access on 99% of its exports under the Developing Countries Trading Scheme (DCTS), a post-Brexit trade initiative designed to enhance economic partnerships with developing nations. The announcement was made by the British High Commission in Abuja, highlighting the scheme's potential to deepen bilateral trade and stimulate Nigeria’s non-oil export sector. Introduced in June 2023, the DCTS is one of the UK government’s most expansive preferential trade schemes. It simplifies trading rules and lowers tariffs for 65 countries, including 36 African nations. For Nigeria, the scheme allows duty-free or reduced tariff access for over 3,000 products, ranging from agricultural produce to processed and manufactured goods. Key Nigerian exports expected to benefit from this arrangement include cocoa, tomatoes, yams, plantains, cashew nuts, palm oil, shrimp, sesame seeds, and value-added products like cocoa butter and cotton apparel. The initiative is also tailored to support Nigeria’s Zero-Oil Plan, which prioritises diversification away from crude oil and towards non-oil exports as a means of achieving long-term economic sustainability. British High Commissioner to Nigeria, Dr. Richard Montgomery, described the scheme as a “landmark trade policy” that aligns with the UK’s vision of a freer and fairer global trading system. He noted that the DCTS was crafted to remove barriers, support job creation, and drive inclusive growth in partner countries. “Nigeria remains a key trading partner for the United Kingdom,” Dr. Montgomery said. “Through the DCTS and our Enhanced Trade and Investment Partnership (ETIP), we are committed to helping Nigerian exporters access global markets by removing unnecessary trade barriers and simplifying rules.” The ETIP, which is being implemented alongside the DCTS, focuses on tackling export constraints faced by Nigerian businesses. This includes addressing issues such as poor infrastructure, non-compliance with international standards, bureaucratic bottlenecks, and limited access to financing. According to the UK High Commission, both initiatives are designed to enhance trade facilitation and capacity building, especially for small and medium-scale enterprises (SMEs) in Nigeria. Industry analysts and government officials have welcomed the reaffirmation of duty-free access as a timely boost for Nigerian exporters, particularly those in the agribusiness, food processing, and textile sectors. They believe the initiative could lead to increased foreign exchange earnings and greater integration of Nigerian products into international value chains. In 2023, bilateral trade between Nigeria and the UK was valued at over £6 billion, with Nigerian exports contributing a substantial share, particularly in oil and gas. However, the UK government is keen on supporting Nigeria’s transition toward non-oil exports to make trade more balanced and sustainable. With this continued duty-free status, Nigerian businesses have an opportunity to not only expand their reach in the UK market but also improve standards to meet global demand. As implementation deepens, the UK and Nigeria are expected to continue their collaboration through policy dialogue, investment in logistics infrastructure, and trade-related technical assistance. This development, stakeholders say, underscores the UK’s post-Brexit foreign trade strategy and reinforces its commitment to stronger economic ties with Africa’s largest economy.