British investors concerned about harmful business practices in Nigeria, says UK government official

Simon Manley, the UK’s permanent representative to the World Trade Organization (WTO) and United Nations (UN) in Geneva, says British investors in Nigeria have expressed worries over harmful business practices in the country.

The British government official welcomed Nigeria’s efforts “on challenging, but necessary, economic reforms”.

“In particular, we have been pleased to see the work done to improve the monetary policy environment and the removal of fuel subsidies,” Manley said.

“However, to be honest Permanent Secretary, we would like you to go even further and faster. For example, there are concerns around the impact of state-owned enterprises on the business environment.

“As the Secretariat noted in its report, as of 2022 around 40 state-owned enterprises were operating in key sectors like energy.

“These state-owned enterprises, to be honest, often employ market-distorting practices and benefit from unfair competition in our view.

“Other concerns that British businesses investing in Nigeria have raised include examples of harmful subsidies, forced technology transfer, discriminatory enforcement of competition policy, and complex regulatory barriers.

“And we have indeed picked up on some of those issues and concerns in our Advanced Written Questions.

“So we would encourage our Nigerian colleagues to address these harmful practices in order to boost investment, boost trade, improve its business environment and ultimately increase Nigerian prosperity.”

Manley said the African Continental Free Trade Agreement (AfCFTA) is already benefiting Nigeria’s economy and business environment.

For future growth, he said they are looking forward to Nigeria implementing the digital trade protocol of the AfCFTA.

“We congratulate Nigeria on commencing commercially meaningful trade under the Agreement by joining the Guided Trade Initiative on 16 July,” he said.

“We, in the UK, are proud to have supported the Nigeria AfCFTA Coordination Office on reaching this milestone and we are currently supporting the implementation of the Digital Trade Protocol flowing from the Agreement, which is an ambitious and comprehensive framework designed to facilitate digital trade and unlock the potential of the digital economy right across the continent.

“According to the joint World Bank-WTO Policy Note last year on digital trade in Africa, if African countries were to improve their digital regulatory environment to that of the best on the continent, trade costs could fall by 17% in goods and 25% in business and professional services.

“So, we look forward to Nigeria implementing that Digital Trade Protocol to the benefit of its businesses, its consumers, and its future growth.”

As a co-chair of the informal working group on gender, Manley also lauded Nigeria’s commitment to empowering women economically.

“As a little practical example, I was delighted to hear the recent story of Madam Chinwe Izenwa. A 73-year-old female entrepreneur and CEO of LeLook, a bags and fashion accessories company, who was the first Nigerian, I understand, to use the AfCFTA’s Guided Trade Initiative,” he said.

“She has even given herself the nickname 0001, as she holds the first Agreement certificate of origin.

“An excellent example of Nigeria’s action on women’s economic empowerment, delivering real-world benefits.”

Manley commended Nigeria’s proactive engagement in the WTO, describing the country as a friend to the multilateral system.

Acknowledging the leadership Ngozi Okonjo-Iweala, the WTO director-general, he described her as the organisation’s most renowned Nigerian.

‘NIGERIA HAS BEEN A STRONG ALLY IN PLURI-LATERAL NEGOTIATIONS’

Manley also commended Adamu Abdulhamid, chair of the WTO trade policy committee, for his significant contributions.

He stated that the organisation would particularly acknowledge Nigeria’s efforts in dispute settlement, as the focal point for the African Group, and in fisheries.

“Nigeria has been a strong ally in pluri-lateral negotiations, whether on Services Domestic Regulation, Investment Facilitation for Development and e-commerce,” he said.

“While we may not always see eye to eye, Nigeria has, rightly, kept our feet to the fire in ensuring that those pluri-lateral outcomes are balanced for all Members.

“Thanks to Nigeria’s input, we can be confident that the agreements reached are a fair compromise of ambition, commercial value and inclusivity.

“We were glad to have reached a stabilised text on e-commerce this summer. We welcome your confirmation, Permanent Secretary, this morning that consultations are ongoing back in Nigeria and we hope to count you as one of the Agreement’s founding parties as we move swiftly forward towards legal incorporation.”

Manley encouraged Nigeria to continue its reform efforts, adding that “Only the things for which you have struggled will last”.