The UK Government praised the economic reforms of the Bola Tinubu era, stating that it will encourage investment, despite calls for nationwide protests by Nigeria’s leading labour groups.
This was disclosed by James Cleverly, British Foreign Secretary Tuesday during a business briefing in Lagos.
Capital Drive and Subsidy
Cleverly said that sound macroeconomic reforms at the national level, no matter how inventive it was could “only go so far”, urging that the removal of fuel subsidy and the unifying of exchange rates will encourage investment and help drive growth
He urged that African countries needed capital to drive investment, development and jobs, citing that if multilateral development banks implemented recommendations of G20’s independent capital adequacy framework, they will unlock hundreds of billions of dollars in development finance.
- “It is imperative that the international financial institutions accommodate shared aspirations for a bigger, more responsive and fairer system.
- “The public sector alone cannot provide all the investments needed. Private capital is essential.”
Cleverly noted that the UK’s role is to promote private sector investments in Nigeria and if multilateral development banks implemented recommendations of G20’s independent capital adequacy framework, they will unlock hundreds of billions of dollars in development finance, he said:
- “That is why the UK government is promoting private sector investment in Nigeria and across the continent and we’ll do our utmost to galvanize even more interest.
- “We will continue to if multilateral development banks implemented recommendations of G20’s independent capital adequacy framework, they will unlock hundreds of billions of dollars in development finance.
- “For example, the better and faster implementation of international tax rules will stop revenues leaking from your national treasury,”.
Cleverly added that no one country could bring about multilateral reform, but change was possible with partnership on reforms that benefited not just African countries, or the UK but the world at large, urging that a sustainable international order was the interest of all, the moment it was safer, it would drive future prosperity.
He said growth will bring rewards, better jobs as well as the revenues needed to have the infrastructure and modern services for all Nigerians, citing a real uplift in growth and prosperity that could not come without an increase in international trade.
UK- Nigeria trade
The foreign secretary said that the UK’s developing countries trading scheme would extend tariff cuts to hundreds of all products exported from developing countries in Africa and elsewhere.
- “This means that 98% of goods imported from Africa into the UK will enter duty-free and new rules of origin will help the least developed economies integrate into global supply chains.
- “Increased trade stimulates partnerships and our collective power today, the power of African countries and the UK together is founded on the quality and the number of our partnerships.
- “That is why in April 2024, we will be co-hosting the UK-Africa investment summit in London. This will be a milestone event and a firm sign that we are stepping up our engagement and partnership with African countries ”