Maureen Okpe
In a significant boost to Nigeria-UK trade relations, the United Kingdom has reaffirmed that Nigeria will continue to enjoy 99% duty-free access on goods exported to the UK under the Developing Countries Trading Scheme (DCTS).
This duty-free move comes amid growing global trade tensions and reinforces the UK’s commitment to deepening economic ties with Nigeria and other emerging markets.
The DCTS, which came into effect in June 2023, is a key part of the UK’s trade strategy to support developing economies by lowering or eliminating tariffs on over 3,000 products.
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The scheme simplifies export rules and makes it easier for Nigerian businesses to qualify for preferential trade terms, boosting export capacity and reducing costs for both Nigerian exporters and UK importers.
British High Commissioner to Nigeria, Dr Richard Montgomery, praised Nigeria’s continued inclusion in the scheme, noting that the DCTS offers a strategic advantage for Nigerian businesses and supports mutual growth.
“As one of the UK’s most important partners in Africa, Nigeria stands at the heart of the UK’s global trade ambitions.
“We want to strengthen trade ties between our two great nations and unlock the power of sustainable and transformative growth in Nigeria and across emerging economies,” said Dr Montgomery.
Under the DCTS, Nigerian exporters can send a wide range of agricultural and value-added products to the UK with minimal or no tariffs.
These include key commodities like cocoa, yam, plantain, tomatoes, shrimp, sesame seeds, and cashew nuts, as well as processed goods such as cocoa paste, cocoa butter, palm oil, and cotton garments. This is expected to help Nigeria diversify its exports and reduce reliance on raw materials by encouraging the export of processed and higher-value goods.
Dr Montgomery emphasized the broader economic impact of the scheme, stating, “A major advantage of the UK’s developing countries trading scheme is the reduction or complete elimination of duty tariffs on everyday goods such as cashew nuts, cocoa, cotton, plantain, tomatoes, prawns, and sesame.
“This isn’t just about improved access into the UK market, it’s about building a fairer, freer global trading system that supports economic growth and job creation, both in developing countries and in the UK.”
He also highlighted ongoing bilateral efforts under the UK-Nigeria Enhanced Trade and Investment Partnership (ETIP), a government-to-government framework designed to tackle export bottlenecks and strengthen Nigeria’s trade competitiveness.
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“Through the UK-Nigeria Enhanced Trade and Investment Partnership, we are continuing to work alongside the Federal Ministry of Industry, Trade and Investment to tackle export challenges and ensure the DCTS is fully leveraged by Nigerian businesses,” Dr Montgomery stated.
The UK’s recommitment to the DCTS for Nigeria comes as part of a broader strategy to establish new trade relationships globally, with recent deals signed with economic powerhouses such as India and the United States. This positions Nigeria to take advantage of new markets, attract more investment, and grow its non-oil export sectors.
With the global economy facing uncertainties, this development is a timely opportunity for Nigerian businesses to expand their reach, boost foreign exchange earnings, and strengthen value chains