Nigeria’s currency, the naira, will become one of three West African currencies that the United Kingdom’s export finance agency will add to its list of pre-approved currencies, allowing it to provide financing for transactions with Nigerian businesses denominated in the local currency. The other two currencies have not yet been disclosed.
Paul Arkwright, the British High Commissioner to Nigeria, stated that this is a clear indication of how much value the UK places on its relationship with Nigeria, and that it will provide a firm foundation for a significant increase in trade and investment between both countries.
Britain voted in 2016 to leave the European Union, which has forced London to rethink its trade ties with the rest of the world. The UK and the EU struck an agreement in December that opened the way for talks on future trade ties.
The naira financing will follow the same structure as a someone buying in Britain’s sterling, except that Nigerian firms taking out a loan in the local currency can benefit from a UK government-backed guarantee.
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