London to ease banking hurdles for Nigerian businesses

Efforts to deepen economic ties between Nigeria and the United Kingdom are accelerating, as the Mayor of London’s office moves to tackle long-standing regulatory and financial hurdles impeding cross-border transactions.

During a strategic visit to Lagos, the Deputy Mayor of London, Howard Dawber, emphasized the city’s growing interest in Nigeria’s vibrant tech and startup ecosystem.

He acknowledged persistent banking and regulatory challenges that hinder Nigerian businesses from seamlessly operating in the UK, especially in accessing bank accounts.

“We know there are some country-specific regulatory hurdles that need to get sorted out, because they are holding people and businesses back,” Dawber said.

“A few people have told me it’s been really difficult to get a bank account — even businesses earning millions of dollars with excellent track records and international operations,” he added.

Dawber cited the difficulty in opening UK-based bank accounts as a major impediment for credible Nigerian companies.

Despite their strong financials and global outlook, these firms often face rigid bureaucratic processes and strict risk assessments that complicate entry into the London financial market.

In response, the Deputy Mayor pledged to engage UK regulators in exploring technical solutions and flexible compliance frameworks that maintain integrity while enabling legitimate foreign firms to thrive.

“There’s a real synergy here — with London seeking to learn from Lagos’s fast-growing tech sector. We need to adjust our systems to be more inclusive of credible emerging market players,” he said.

As part of this renewed push, London & Partners, the Mayor’s official promotional agency, is actively working to bridge the gap between the UK and Nigerian business communities. The agency is developing initiatives to ease market entry for Nigerian firms in the UK and support British businesses seeking expansion in Nigeria.

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This collaboration, according to Dawber, is crucial for unlocking bilateral trade opportunities and overcoming wider continental challenges such as payment friction, inadequate infrastructure, and fragmented financial connectivity.

Dawber admitted that while London is renowned for its dependable, rule-based system, a more pragmatic approach may be necessary when engaging with businesses from emerging markets like Nigeria.

“We are very good at rules in London — and that’s great for dependability. But sometimes, we stick to global rules a bit more rigidly than others. There’s room to be flexible without compromising standards,” he said.

Commenting on the development, Dr. Oby Okwenna, a trade policy expert and founder of the Nigeria-UK Business Council, said the London Mayor’s office is taking a welcome step in the right direction.

“For years, Nigerian companies have been locked out of UK markets due to unnecessarily complicated banking requirements. A reform that embraces local realities while ensuring global compliance is long overdue,” she said.

Business leaders in Lagos have also expressed optimism that if the planned regulatory easing takes shape, it could unlock new investment streams, particularly in fintech, e-commerce, logistics, and financial services.