The United Kingdom has urged Nigeria to accelerate its economic reforms, particularly by addressing practices within state-owned enterprises that distort the market and hinder trade and investment.
The UK’s Permanent Representative to the World Trade Organisation, Simon Manley, made the call during Nigeria’s Trade Policy Review in Geneva on Monday.
While acknowledging Nigeria’s recent economic progress, such as the removal of fuel subsidy and adjustments to monetary policy, Manley emphasised that deeper and more rapid reforms are needed to foster a more business-friendly environment, according to The PUNCH.
Manley pointed out that around 40 state-owned enterprises in key sectors, such as energy, were contributing to market distortions by limiting competition.
These practices, he explained, hinder private sector participation and undermine the potential for increased trade and investment.
In addition, Manley highlighted several challenges faced by British businesses in Nigeria, including harmful subsidies, forced technology transfers, discriminatory competition laws, and a complex regulatory environment. These issues, he suggested, have made it difficult for businesses to thrive in Nigeria’s market.
He also stressed the importance of the UK-Nigeria Strategic Partnership, which is aimed at reducing trade barriers and identifying opportunities for mutual growth. Manley recognized Nigeria’s efforts to diversify its economy, particularly in manufacturing and agriculture, as well as its infrastructure investments in energy, housing, and transport, which have contributed to the country’s economic growth.
He said, “there are concerns around the impact of state-owned enterprises on the business environment. As the Secretariat noted in its report, as of 2022 around 40 state-owned enterprises were operating in key sectors like energy.
“Other concerns that British businesses investing in Nigeria have raised include examples of harmful subsidies, forced technology transfer, discriminatory enforcement of competition policy and of complex regulatory barriers. And we have indeed picked up on some of those issues and concerns in our Advanced Written Questions.
“So, we would encourage our Nigerian colleagues to address these harmful practices in order to boost investment, boost trade, improve its business environment and ultimately increase Nigerian prosperity.”
