The United Kingdom and Nigeria have achieved a significant milestone in their economic relationship, with bilateral trade surpassing £7.5 billion in 2025. This growth, announced by British High Commissioner Richard Montgomery, underscores the deepening ties between the two nations. The UK-Nigeria bilateral trade partnership has evolved into a robust framework, focusing on sectors like agriculture, energy, and financial services. This article explores the drivers behind this success, the challenges overcome, and the future opportunities for both countries.
The Rise of UK-Nigeria Bilateral Trade
The UK-Nigeria bilateral trade relationship has seen steady growth, reaching £7.5 billion in 2025. This marks a significant increase from the £7 billion recorded in 2024, reflecting the impact of strategic agreements and economic reforms. The UK exports approximately £4 billion worth of goods and services to Nigeria, while Nigeria exports around £3.5 billion to the UK, creating a relatively balanced trade flow.
Key sectors driving this growth include agriculture, energy, and financial services. Nigeria’s agricultural exports, such as cashew, cocoa, and cotton, have benefited from the UK’s Developing Countries Trading Scheme (DCTS), which removes tariffs on thousands of products.
Enhanced Trade and Investment Partnership (ETIP)
In February 2024, the UK and Nigeria signed the Enhanced Trade and Investment Partnership (ETIP), the first of its kind between the UK and an African nation. This agreement aims to boost trade volumes and address regulatory barriers, fostering collaboration in sectors like legal services, education, and renewable energy.
The ETIP has already yielded results. For instance, UK energy firm Konexa signed a £14 million deal to supply renewable power to Nigerian Breweries PLC, promoting sustainable energy adoption in Nigeria 3. Additionally, the partnership has facilitated the establishment of UK-based educational institutions like Charterhouse School in Nigeria, further strengthening bilateral ties.
Challenges and Opportunities
Despite the progress, challenges remain. Non-tariff barriers, such as differing safety standards, have hindered trade. However, efforts are underway to align regulatory frameworks. The Standards Organisation of Nigeria (SON) is collaborating with UK counterparts to streamline certification processes, making it easier for Nigerian products to enter the UK market.
Nigeria’s recent economic reforms, including the removal of fuel subsidies and foreign exchange reforms, have created a more favorable environment for investment. These changes have attracted UK businesses, particularly in the financial services sector, where new technologies are driving innovation.
Future Prospects for UK-Nigeria Trade
The future of UK-Nigeria bilateral trade looks promising. Both nations aim to surpass the £10 billion mark in the coming years. Private sector initiatives, such as those led by the Nigeria British Chamber of Commerce (NBCC), are expected to play a crucial role in achieving this target.
Agriculture remains a key area of focus. With over 3,000 tariff-free products eligible for export to the UK, Nigeria has the potential to become a major supplier of agricultural goods. The UK’s DCTS scheme provides a unique opportunity for Nigerian farmers to expand their market reach.
Conclusion
The UK-Nigeria bilateral trade relationship has reached new heights, with trade volumes surpassing £7.5 billion in 2025. This achievement reflects the success of strategic partnerships like the ETIP and the impact of Nigeria’s economic reforms. As both nations continue to collaborate, the potential for further growth is immense. By addressing challenges and leveraging opportunities, the UK and Nigeria can build a prosperous future together.
