Britain Offers UK-Nigeria Businesses Opportunity For Payment In Naira

In a bid to further support trade and investment between Britain and Nigeria, the UK government, through its export credit agency, UK Export Finance (UKEF), has offered to support finance in Naira to Nigerian projects procuring from the UK.
The move is expected to also help Nigerian businesses finance projects and source quality products and services from the UK thereby stimulating the economy, even as requests will be assessed on a case-by-case basis through the UK Department for International Trade, Nigeria and UKEF in London.
The Local Currency Financing structure, according to the statement, “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.”
The offer, according to the UKEF, will enable Nigerian businesses manage foreign exchange risks and negotiate better terms with local banks, just as interested clients are encouraged to contact the UK Department for International Trade DIT) in Nigeria for guidance.
According to Paul Arkwright, British High Commissioner to Nigeria, the offer “is a clear indication of how much value the UK places on its relationship with Nigeria.
“It will provide a firm foundation for a significant increase in trade and investment between both countries. 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,” he added.
Commenting, Ben Ainsley, Head of The Department for International Trade (DIT), expressed delight at the offer that enables Nigerian and 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.”
UKEF, the statement added, provides a range of innovative and flexible products, providing up to 85% funding for projects containing a minimum of 20% UK content, a development that makes Naira one of only three West African currencies on UKEF’s pre-approved currencies list.