UK announces local currency support for UK-Nigeria trade

In a bid to further support trade and investment between UK and Nigeria, the UK government, through UK’s Export Credit Agency, UK Export Finance has announced that it will now be able to support finance in Naira to Nigerian projects procuring from the UK.

This Local Currency Financing structure follows the same format as a conventional buyer credit in sterling or any other currency, except that now Nigerian businesses buying British goods or services and taking out a loan in Naira from a bank in Nigeria can benefit for a UK Government-backed guarantee.

This can enable businesses to manage foreign exchange risks and, many times, to negotiate better terms with local banks.

“The UK believes that no one intending to transact with British businesses should be hindered by lack of financing. By allowing Nigerian businesses easier access to world-class goods and services, we are supporting both the Nigerian and the British economy” said the British High Commissioner to Nigeria, Paul Arkwright.

Ben Ainsley, Head of The Department for International Trade (DIT), Nigeria, noted that – “We are excited to be able to offer Nigerian, as well as British, businesses the ability to enter trade arrangements that are financially feasible for both sides. This was a key issue raised by members of the local business community when the Trade Envoy was here last November. We listed and took this feedback to London. DIT is ready to work with Nigerian businesses to identify potential trade partners across the market.”

The development makes Naira one of only three West African currencies on UKEF’s pre-approved currencies list. The move will help Nigerian businesses finance projects and source quality products and services from the UK thereby stimulating the economy.

Requests will be assessed on a case by case basis through the UK Department for International Trade, Nigeria and UKEF in London.  Interested clients are encouraged to contact the UK Department for International Trade in Nigeria for guidance.

The UK’s Export Credit Agency, UK Export Finance (UKEF), provides a range of innovative and flexible products, providing up to 85% funding for projects containing a minimum of 20% UK content.

UK Export Finance is the operating name of the Export Credits Guarantee Department (ECGD), the United Kingdom’s export credit agency and a ministerial department of the UK government. It is the world’s oldest export credit agency, with nearly 100 years’ experience in helping overseas buyers’ access UK government-backed finance.