In this section, we look in more detail at past trends in goods and service imports and FDI into Nigeria to identify the main growth engines and sectors of the highest potential for the future. We then analyse the UK’s competitiveness in both imports and FDI. To prioritise the best opportunities for the UK, we specifically choose sectors that: a) we categorise as ‘high-growth, low value’ or ‘high-growth, high value’ based on current size and recent growth rates (see page 13); b) will continue to have strong import demand or domestic FDI opportunity as Nigeria’s economy develops in the period to 2030; and c) the UK has an existing competitive advantage in (see Appendix E).
Based on this assessment, we have identified six goods and services that we think will provide the biggest opportunity for UK exports. Together these goods and services could account for more than two-thirds of all non-oil and gas imports to Nigeria by 2030. Similarly, we have identified three sectors that we expect will provide the most promising FDI opportunities for UK businesses given the UK’s existing strengths and the needs of the Nigerian economy going forward. For FDI sectors we do not estimate the size of the 2030 potential due to lack of available data.
Machinery and transport equipment: The largest import group in Nigeria that accounts for most (56%) of the UK’s imports. Power generators and motor vehicles are in particular demand for commercial as well as individual use.
Manufactured goods: the UK’s expertise in building fittings (heating/cooling, lighting), high-end apparel and fashion accessories will cater to both enterprise and retail side in trade and construction sectors.
Chemical and related products: Medical and pharmaceutical products, detergents, fertilisers and complex plastics are areas that the UK has strong heritage in and can fuel growth in sectors such as agriculture, manufacturing and healthcare.
Transportation and travel: Facilitating movement of people and goods will be even more important as Nigeria grows, UK passenger transport and freight companies are well placed to exploit this trend due to the strategic location of the UK.
Telecommunication and information (ICT) services: With rising incomes and international connectivity, internet/satellite provision and media content creation and distribution will be in high demand in Nigeria.
Intellectual property: Demand for UK brands is high in Nigeria. Licensing of intellectual property rights for franchises and other purposes will be even so stronger in Nigeria. Our analysis shows it could be the third biggest service import by 2030.