The United Kingdom and Nigeria have reaffirmed their commitment to deepening economic cooperation through the UK’s Developing Countries Trading Scheme (DCTS).

The countries reaffirmed the commitment at a workshop organised by the United Kingdom Department for Business and Trade, in collaboration with Nigeria’s Federal Ministry of Industry, Trade and Investment, on Wednesday in Lagos.

The workshop sought to equip stakeholders with insights into how the scheme is reshaping global trade dynamics and brief participants on standards and requirements to export agrifood to the United Kingdom.

DCTS, launched in June 2023, is designed to make trading with the United Kingdom easier, more accessible and more profitable for fast-growing developing countries, including Nigeria.

Gertrude Orji, director, Investment Promotion Department, Federal Ministry of Industry, Trade and Investment, said at the workshop that the initiative underscored the shared commitment to deepen economic bilateral cooperation.

According to her, the United Kingdom is currently the third largest investor in Nigeria, while Nigeria is the second largest destination for UK investment in Africa.

She said that 98 per cent of the investment was in the oil and gas sector.

According to her, DCTS is coming at a critical time when Nigeria is intensifying efforts to diversify its export base beyond oil and strengthen its participation in global value chains.

Ms Orji, however, emphasised the importance of understanding trade rules to maximise benefits from the scheme.

“Stakeholders must have a clear understanding of the rules of origin, documentation requirements, product standards, and trade facilitation measures under the scheme,” she said.

She added that the workshop was essential for bridging information gaps, strengthening institutional coordination, and enhancing the competitiveness of Nigerian exports in the United Kingdom market.

“For Nigeria, this means expanded market access for key non-oil exports such as agricultural produce, textiles, leather, processed food and manufactured goods.

“Beyond market access, the DCTS aims to encourage value addition, industrial growth and export diversification,” she said.

This, she said, aligned with the current administration’s eight-point agenda under the Nigerian Industrial Revolution Plan and the National Trade Policy.

She reaffirmed the ministry’s commitment to initiating policies that would support export development and trade facilitation.

Mujina Kaindama, the United Kingdom’s Head of Trade Policy and Market Access for Nigeria, said DCTS was created to make trading in the United Kingdom fairer and more inclusive for developing countries.

Ms Kaindama said that DCTS differed from the Generalised System of Preferences (GSP) because it had fewer restrictions and simpler requirements.

“The DCTS removes some of the impediments that would have stopped traders and exporters from using the GSP.

“For instance, under the GSP, you would have to sign up to various international treaties. This requirement has been removed under the new scheme.

“We want to make sure the DCTS is not just a policy but something people practically use,” she said.

Ms Kaindama said the scheme was also designed to encourage value addition in Nigeria and promote trade within Africa.

According to her, it is made in a way that allows sourcing from within and around Africa while still qualifying goods for tariff-free access to the United Kingdom.

She said the United Kingdom also worked with Nigerian regulatory agencies, including the National Agency for Food and Drug Administration and Control and the Standards Organisation of Nigeria, to ensure that product standards would meet international requirements.

She said that the collaboration would help Nigerian exporters to obtain internationally recognised certifications.

Jasmine Dirie, Head of the DCTS at the UK Foreign, Commonwealth and Development Office, said the scheme impacted 65 countries and 3.3 billion people, exporting over £28 billion worth of goods to the United Kingdom each year.

Ms Dirie said the DCTS supported three key objectives that were promoting sustainable growth in developing countries, strengthening global supply chains, and improving consumer choice through better quality and pricing.

According to her, Nigeria, alongside Algeria and Sri Lanka, enjoys enhanced preference, with at least 92 per cent of products being duty-free.

“Ethiopia, Bangladesh and Benin enjoy comprehensive preference, with 99 per cent of products being duty-free,” she added.

Ms Dirie added that DCTS provided Nigerian exporters with major benefits, including improved competitiveness and transparent trading terms.

She said that since the beginning of the DCTS, the United Kingdom had imported over £44 million worth of DCTS-eligible goods from Nigeria and that nearly £40 million of these entered using DCTS preferences.

She, however, stressed that Nigerian exporters must claim the preferences to enjoy the benefits.

“Exporters must claim preferences by proving the origin of their goods and showing that processing requirements are met.

“This customs procedure ensures that businesses meeting the scheme’s standards can benefit fully from tariff-free access,” she said.

(NAN)