UK trading scheme retains 99% duty-free for Nigerian goods

The United Kingdom has said Nigeria will continue to enjoy duty-free access on 99 per cent of total goods exported to the UK market under the Developing Countries Trading Scheme.

This was disclosed in a statement from the British High Commission Communications Office on Friday.

The DCTS, launched in June 2023, allows Nigeria and 36 other African countries to export over 3,000 products duty-free or at reduced tariffs to the UK, thus supporting Nigerian businesses to grow and become more competitive globally.

The UK’s scheme also lowers import costs for UK businesses and offers consumers a wider range of affordable products.

Commenting on the DCTS, British High Commissioner to Nigeria, Dr Richard Montgomery, said, “As one of the UK’s most important partners in Africa, Nigeria stands at the heart of the UK’s global trade ambitions, and we want to strengthen the trade ties between our two great nations and unlock the power of sustainable and transformative growth in Nigeria and across emerging economies.

A major advantage of the UK’s developing countries trading scheme is the reduction or complete elimination of duty-tariffs on everyday goods such as cashew nuts, cocoa, cotton, plantain, tomatoes, prawns, and sesame. This isn’t just about improved access into the UK market, it’s about building a fairer, freer global trading system that supports economic growth and job creation, both in developing countries and in the UK.”

Montgomery added, “Through the UK-Nigeria Enhanced Trade and Investment Partnership, we are continuing to work alongside the Federal Ministry of Industry, Trade and Investment to tackle export challenges and ensure the DCTS is fully leveraged by Nigerian businesses to improve trade growth between our two countries.”

Through the DCTS, Nigerian exporters can sell goods like cocoa, yam, tomatoes, plantain, shrimp, and other agricultural products to the UK at reduced tariffs. The scheme also supports processed and value-added products like cocoa paste and cocoa butter, sesame and Palm oil, cashew nuts, cotton clothing, and cocoa paste, helping Nigeria move beyond raw exports.

This trade framework is part of a wider UK effort to build strong economic ties across the world, with recent trade agreements also signed with major economies like India and the United States.

At the end of 2024, the total bilateral trade in goods and services between the UK and Nigeria stood at £7.2bn, a decrease of 7.6 per cent or £596m compared to 2023.