Implementation of multilateral trade reforms will drive growth in Nigeria, says UK foreign secretary

James Cleverly, foreign secretary of the United Kingdom, says the British government has plans to improve multilateral trade reforms to sustain growth in African countries, including Nigeria.

Cleverly spoke during a business briefing in Lagos on Tuesday.

The foreign secretary who spoke extensively about sound macroeconomic reforms at the national level, said African countries needed capital to drive investment, development, and jobs.

Cleverly also said President Bola Tinubu’s economic reforms such as the removal of fuel subsidy and the unifying of exchange rates will encourage investment and help drive growth.

“It is imperative that the international financial institutions accommodate shared aspirations for a bigger, more responsive and fairer system,” he said.

The British official also said the UK government was taking a leading role in the reform of international financial institutions and investing in the World Bank and the African Development Bank (AfDB).

“The public sector alone cannot provide all the investments needed. Private capital is essential,” the UK foreign secretary added.

“That is why the UK government is promoting private sector investment in Nigeria and across the continent and we’ll do our utmost to galvanize even more interest.

“We will continue to champion further multilateral reforms that will benefit Africa. For example, the better and faster implementation of international tax rules will stop revenues from leaking from your national treasury.”

Cleverly said if multilateral development banks implemented recommendations of G20’s independent capital adequacy framework, they would unlock hundreds of billions of dollars in development finance.

The UK foreign secretary noted that no one country could bring about multilateral reform, but change was possible with partnerships on reforms that benefit not just African countries, or the UK, but the world at large.

“Although a sustainable international order was the interest of all, the moment it was safer, it would drive future prosperity,” he added.

“Growth will bring rewards, better jobs as well as the revenues needed to have the infrastructure and modern services for all Nigerians.”

Cleverly argued that for there to be a real uplift in growth and prosperity, there must be an increase in international trade.

He said the UK’s Developing Countries Trading scheme would extend tariff cuts to hundreds of products exported from developing countries in Africa and elsewhere.

“This means that 98 percent of goods imported from Africa into the UK will enter duty-free and new rules of origin will help the least developed economies integrate into global supply chains,” Cleverly said.

“Increased trade stimulates partnerships and our collective power today, the power of African countries and the UK together is founded on the quality and the number of our partnerships.

“Only together can we adequately address shared challenges, harness opportunities and improve living standards.

“That is why in April 2024, we will be co-hosting the UK-Africa investment summit in London. This will be a milestone event and a firm sign that we are stepping up our engagement and partnership with African countries.”