Gladness Gideon
The United Kingdom has confirmed that Nigeria will continue to enjoy duty-free access on 99 per cent of its exports under the Developing Countries Trading Scheme (DCTS) — a post-Brexit initiative aimed at deepening trade with emerging economies.
This was disclosed in an official statement released Friday by the British High Commission in Nigeria, reaffirming the UK’s commitment to fostering stronger economic ties with Africa’s largest economy.
Launched in June 2023, the DCTS allows Nigeria and 36 other African countries to export over 3,000 products to the UK duty-free or at significantly reduced tariffs. The scheme is designed to stimulate export growth, enhance market access, and encourage industrial value addition across participating nations.
According to the statement, the initiative supports Nigerian businesses by providing preferential market entry into the UK, while simultaneously benefiting UK consumers through lower import costs and greater product diversity.
British High Commissioner to Nigeria, Dr. Richard Montgomery, described Nigeria as one of the UK’s most strategic trade partners in Africa and emphasized the long-term impact of the DCTS on job creation and economic growth.
“Nigeria stands at the heart of the UK’s global trade ambitions,” Montgomery said. “This isn’t just about improved access into the UK market—it’s about building a fairer, freer global trading system that supports economic growth both in developing countries and in the UK.”
He noted that products such as cashew nuts, cocoa, cotton, plantain, tomatoes, prawns, and sesame are among the key Nigerian exports that now benefit from either zero tariffs or significantly reduced rates.
In addition to agricultural commodities, the DCTS also covers processed and value-added goods including cocoa butter, sesame oil, palm oil, and cotton clothing, encouraging Nigeria to move beyond raw material exports and into industrial manufacturing.
The DCTS is being implemented alongside the UK-Nigeria Enhanced Trade and Investment Partnership, a bilateral framework aimed at resolving export-related bottlenecks and improving the capacity of Nigerian businesses to access international markets.
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Montgomery reiterated the UK’s ongoing collaboration with Nigeria’s Federal Ministry of Industry, Trade and Investment to ensure the scheme delivers real value for local producers and exporters.
“We’re working hand-in-hand to tackle export challenges and ensure that Nigerian businesses fully leverage the benefits of the DCTS,” he added.
Despite the UK’s strong trade overtures, data shows that total bilateral trade in goods and services between the two countries stood at £7.2 billion at the end of 2024, a 7.6 per cent decrease from the previous year.
Analysts expect the continuation of the DCTS and enhanced trade partnerships to reverse this decline and boost long-term trade volumes, especially in sectors such as agriculture, textiles, and food processing.
The scheme also aligns with the UK’s broader efforts to reshape its global trade strategy post-Brexit, with similar agreements being explored or finalized with other major economies including India and the United States.