Nigeria’s trade with the United Kingdom recorded a sharp decline of 25 per cent in the first quarter of 2024, dropping from N602.36 billion in Q1 2023 to N451.45 billion, according to the latest data from the National Bureau of Statistics (NBS).
The significant year-on-year decrease reflects a challenging period despite the naira’s devaluation, which typically boosts export competitiveness. Imports from the UK also saw a slight decline from N186.99 billion in Q4 2023 to N183.34 billion in Q1 2024, marking a 2 per cent decrease quarter-on-quarter but a 25 per cent increase year-on-year.
Exports, however, took a harder hit, plummeting from N335.8 billion in Q4 2023 to N268.11 billion in Q1 2024, representing a 20 per cent decrease quarter-on-quarter and a staggering 41 per cent decline compared to Q1 2023.
The UK remained a significant destination for Nigerian re-exports, including tools, iron/steel articles, and household items, amounting to millions in Q1 2024. Conversely, Nigerian exports to the UK featured items like food preparations valued at N1.8 billion.
The downturn in trade coincided with the UK’s efforts to navigate an economic slowdown, with GDP contracting by 0.3 per cent in Q4 2023 before modestly recovering by 0.6 per cent in Q1 2024. Challenges also arose from revised visa policies affecting international students, potentially impacting sectors like education and services.
Despite these setbacks, the UK and Nigeria explored new economic partnerships in energy, legal, and financial services sectors during the period under review.
In contrast, Nigeria announced a $3.5 billion agreement with Afreximbank aimed at revitalising its textile industry, promoting CNG vehicles, and bolstering other sectors, underscoring efforts to diversify and strengthen its economy.
The agreement, signed during the 31st Afreximbank Annual Meeting in Nassau, Bahamas, reflects Nigeria’s commitment to President Bola Ahmed Tinubu’s economic vision, highlighting prospects for industrialisation, regional development, and global investment confidence.
The move is set to inject vitality into Nigeria’s industrial landscape, create employment opportunities, and foster sustainable economic growth, signaling optimism amid challenging global trade dynamics.
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