16 February 2018

Nigeria: 'UK's Listing of Naira Opens Up Huge Trade Deals'

The listing of the nation's currency- Naira, under the pre-approved currencies policy of United Kingdom will facilitate more trade deals among the countries.

Besides, it has been assessed as a show of the strength of bilateral relations and the efforts in easing complex negotiations associated with business for the countries.

A Research Analyst at Cyprus-based FXTM, Lukman Otunuga, while speaking to The Guardian, described the listing of the nation's currency- Naira, under the pre-approved currencies policy of United Kingdom as a "pleasant surprise."

"This move by the United Kingdom is a big deal and continues to highlight how much value the UK places on its relationship with Nigeria.

"The deal will ease complications for those importing goods from the UK, further reinforcing the economic relationship between the two nations and providing an encouragingly positive outlook for the troubled Naira," he said.

Last week, the British government, through its export credit agency- UK Export Finance (UKEF), said it would now accept payments in Naira from Nigerians who import from there, according to reports.

The report also noted that Nigerian businesses buying items of British origin, with debt facilities from a Nigerian bank would also benefit from the guarantee backed by the UK government.

But Otunuga reiterated that sentiment towards the Nigerian economy has continued to improve, especially when considering how Nigerian businesses will be able to buy goods from the UK in Naira.

"While the Central Bank of Nigeria could be slightly pressured to remit the Pound to the UK, the pros of the Naira becoming one of the three West African currencies that UK Export Finance has pre-approved, outweighs the cons," he added.

Recently, Afrinvest (West Africa) Limited said with the upturn in commodity prices, impressive performance in the oil sector, and adoption of pro-market forex reforms by the central bank, the economy has clearly become more attractive to foreign and local investors.

The Group Managing Director, Ike Chioke, said: "2017 was indeed a year of recovery for the Nigerian economy. Through deliberate efforts from the government, we saw a rebound in economic activity, as well as strengthened investor confidence and business sentiments."

According to him, we expect the economy to continue on its positive trajectory since its recovery, as the fundamentals still favour the country.


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