The United Kingdom has a long and complex relationship with its former colonies, deeply rooted in its history as the British Empire. The nation once exerted control over vast territories across the globe. British colonies provided raw materials and markets for British goods, and the empire often justified its actions with the notion of a "civilizing mission," claiming that Britain was spreading civility and Christianity to so-called "ignorant" societies. This era saw the widespread exploitation of valuable resources from the developing world for the sole benefit of the British Empire, often at the expense of its colonies. It also included forced labour and the suppression of indigenous cultures and economies.
Historically, the British Empire, compared to other colonial powers, took a more hands-off approach in exerting its influence over its colonies. The British often preferred to keep traditional rulers in their positions, whereas nations like France tended to exert direct control over the people. However, the British still mandated the adoption of British policies, the learning of the English language, and the purchase of British-made products in their colonies. Nigeria, one of these colonies, saw its first agricultural market shaped by the forced exportation of cash crops such as cocoa, groundnuts and palm oil, resulting in an economy heavily dependent on agriculture.
In the post-colonial period following World War II, oil was discovered in Nigeria's Niger Delta region, marking a significant shift towards an oil export-focused economy. The immediate post-colonial period, particularly after the 1940s, saw a significant decrease in both British exports and imports to and from Commonwealth member states, as noted in a 2020 study by the British House of Commons.
After officially leaving the European Union in 2020, the UK had to seek alternative trade partners to minimise the impact on its local markets. This has led to an increase in trade with non-EU nations such as the US and particularly with the Commonwealth.
With 56-member states, including large economies like India, Canada, Australia, and South Africa, the Commonwealth presents potential new trade opportunities for the UK. In its efforts to diversify its imports, the UK has made significant strides toward expanding its trade relationships. Many former colonies may view this as a potential avenue for further development and economic growth.
While there has been a marked increase in the amount of trade we have seen between Nigeria and the UK there is still room for Nigeria to situate itself as a more significant trading partner to the UK with its vast wealth of oil resources. The Enhanced Trade and Investment Partnership (ETIP), signed in 2023 marked a positive development for Nigeria by being the first of its kind between the UK and an African country. This agreement was aimed at strengthening the already thriving trade relationship between the two nations, which was valued at £7 billion in the year leading up to September 2023.
The ETIP is designed to open new opportunities in key sectors such as finance, legal services, and creative industries. It also supports Nigeria's participation in the UK's Developing Countries Trading Scheme (DCTS), which offers tariff reductions on over 3,000 products. This makes 99 per cent of Nigerian exports to the UK duty-free, particularly benefiting non-oil sectors like cocoa, sesame oil, and textiles. This scheme is expected to significantly boost trade volumes between the two countries.
Furthermore, Nigeria is home to one of the largest proven oil reserves in Africa, with approximately 37 billion barrels of oil as stated by the Nigerian Upstream Petroleum Commission. As global energy markets face volatility and geopolitical tensions, the UK's need to diversify its energy sources has become more critical. Nigeria's vast oil reserves offer a reliable alternative to traditional suppliers from the Middle East, providing the UK with a stable and secure supply of crude oil. As Nigeria continues to develop its refining capacity, there is potential for the export of refined petroleum products to the UK. This would not only help meet the UK's energy demands but also reduce its reliance on imports from more distant markets, thereby cutting transportation costs and enhancing energy security.
This would be beneficial to the UK as well, for a stronger energy partnership with Nigeria could be a strategic move to ensure energy security. Establishing long-term contracts for Nigerian oil would provide the UK with a steady supply of energy, insulating it from global oil price fluctuations and supply disruptions. This is particularly important as the UK seeks to secure its energy future in a rapidly changing global landscape. The UK could work with Nigeria to develop strategic oil reserves, ensuring that both countries have a buffer against unforeseen global events that could impact oil supply. Such an arrangement would not only enhance the UK's energy security but also deepen the strategic relationship between the two nations.
In terms of cultural exchange, Nollywood produces the second-highest quantity of films in the world, only surpassed by India's Bollywood in the movie industry with an appeal that extends far beyond Africa. With a growing audience in the UK, particularly among the African diaspora we can promote Nollywood in the UK through film festivals, streaming platforms, and television networks. Nigeria can expand its cultural footprint and create economic opportunities through content sales, co-productions, and talent exchanges.
Collaborations between Nigerian and UK filmmakers can further enhance this influence. By exploring cross-cultural themes that resonate with both Nigerian and UK audiences, such partnerships can lead to the production of films that enjoy global success, thereby strengthening cultural ties and generating revenue.
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The global market for organic and speciality food is expanding, and the UK is no exception. Nigeria could capitalise on this trend by exporting organic versions of its agricultural produce, such as organic cocoa or fair-trade certified products, tapping into niche markets. Additionally, while Nigeria is a major producer of palm oil exporting it in its crude form limits its economic benefits. By refining palm oil and producing derivatives like palm olein (used in cooking oils) or palm kernel oil (used in cosmetics), Nigeria can add value to its exports. These products are in demand in the UK's food and cosmetics industries.
The relationship between Nigeria and the UK is evolving into a more strategic partnership, particularly in the post-Brexit landscape. With agreements such as the Enhanced Trade and Investment Partnership (ETIP) and the Developing Countries Trading Scheme (DCTS), both nations are set to deepen their economic ties. These initiatives not only bolster trade in traditional sectors like oil but also create new opportunities in finance, legal services, and the creative industries.
Ibrahim resides in Abuja
