Appraising Nigeria-UK trade ties

With Nigeria-UK trade valued at an estimated £7.9bn ($10.5bn) in the year to end July 2025, both countries are looking to President Bola Tinubu's state visit to the UK as an opportunity to intensify efforts to deepen commercial ties and unlock new investment frontiers across critical sectors.

British high commissioner to Nigeria Richard Montgomery said the trade value between Nigeria and Britain has hit an unprecedented level.

He said Nigeria is one of the countries that benefited the most from Britain's exit from the European Union (EU), better known as Brexit. But despite gathering momentum, the UK is missing from the top 10 destinations for Nigeria's non-oil exports per recent data from the Nigeria Export Promotion Council (NEPC).

Changing trade landscape

In July 2025, the UK government unveiled a new 'Africa Approach' in a bid to build a new relationship with the continent "based on genuine partnerships and rooted in mutual respect."

The UK government has announced new measures intended to simplify imports from Africa and to make it easier for UK businesses to conduct trade with counterparts across the continent. This led to the amendment of the Developing Countries Trading Scheme, which outlines the framework for most trade with Africa, with the central reform concerning simplifying so-called "rules of origin." Previously, businesses in countries eligible for tariff-free exports to the UK, such as Nigeria, had to prove their goods did not include components from other non-eligible countries. This requirement has since been abolished.

Nigeria is set to benefit. Mark Smithson, the UK Department for Business and Trade's country director for Nigeria, said that "up to 3,000 products from Nigeria qualify for low tariff or no tariff access to the UK through the Developing Countries Scheme - one of the most generous trading schemes in the world."

That was why, as part of efforts to strengthen the economic relationship and celebrate deep cultural ties, shared vibrancy, and global influence, the Mayor of London, Sadiq Khan, visited Nigeria last year with 27 UK businesses in tow in what was dubbed a "trade mission". The visit highlighted the growing importance of Nigeria as a key partner in the UK's global trade and investment strategy, particularly in sectors such as fintech, innovation, and the creative economy.

New UK business berths in Nigeria

British businesses have also shown a renewed interest in Nigeria. This February, Lebara, a UK-based mobile virtual network operator (MVNO), officially marked its entry into the Nigerian market. The move has been described by stakeholders as a step toward deeper competition, inclusion, and digital innovation in Nigeria.

The launch, attended by government officials, diplomats, regulators, financiers, and industry leaders, and held in partnership with the UK Department for Business and Trade and the British High Commission in Lagos, signalled the arrival of the British-owned brand into Africa's largest telecoms market.

Operating in partnership with Airtel Nigeria, Lebara will leverage existing infrastructure while focusing on product innovation, diaspora connectivity, and enhanced customer experience.

British deputy high commissioner in Lagos, Jonny Baxter, described the launch as a reflection of deepening UK-Nigeria cooperation in the digital economy.

He added that Nigeria's rapidly expanding digital economy made it the first African country to partner with the Lebara brand, describing affordable and reliable connectivity as essential infrastructure for commerce, financial transactions, and inclusive growth. Baxter also referenced Tinubu's forthcoming state visit to the UK as a testament to Nigeria's strategic importance on the global stage.

Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, welcomed Lebara's entry into the Nigerian market, noting that MVNOs can help deepen access and inclusion in a market with over 140 million subscribers.

"They have come to add to the size of our market, deepen access, and promote inclusiveness," Adebayo said, adding that underserved communities present growth opportunities for new entrants.

Chief executive officer and managing director of Lebara Nigeria, Teniola Stuffman, said the company's decision to enter the Nigerian market followed extensive due diligence and two years of preparation.

State visit offers chance to boost ties

Commenting on efforts to boost Nigeria-UK trade relations, the director-general of the Progressive Institute, Lanre Adebayo, described Tinubu's planned state visit to the United Kingdom as a strong signal that Nigeria's global standing is improving.

He noted that the visit, which comes more than three decades after a similar high-level engagement by a Nigerian president, reflects renewed international confidence in Nigeria's leadership and reform agenda.

"The invitation to President Tinubu demonstrates that Nigeria is being recognised once again as a serious global partner," he said.

For his part, a professor of security and strategy at the Nigerian Defence Academy in Kaduna State, Abiodun Oluwadare, said the planned official visit to the United Kingdom will serve as a major turning point in Nigeria-UK relations.

"President Tinubu's visit provides an occasion to negotiate safe, legal migration pathways, bilateral labour mobility agreements, and diaspora investment schemes. A well-managed diaspora engagement strategy could translate remittances into productive domestic investment, strengthening Nigeria's external reserves and economic resilience," he added.

As Nigeria and the UK consolidate their trade relationship and expanding partnership Tinubu's anticipated visit signals not just a pathway for stronger economic ties, but a shared commitment to innovation, investment and long-term prosperity.

This special report was produced with the support of the Central Bank of Nigeria. The editorial was produced independently of the CBN or the government.