UK businesses are well placed to succeed in Nigeria The UK’s importance in Nigeria has been sliding. Since 2000, the UK has fallen from 1st to become only the 5th largest non-oil goods exporter to Nigeria behind China, US, India and Germany (see Figure 1). Similarly, the UK’s share of the FDI stock in Nigeria has decreased from close to 7% to less than 2% between 2005 and 2014.
The UK’s decline can be attributed to the growing importance of China and India in global trade, and an apparent decline in the UK’s competitiveness relative to its developed economic rivals, most notably Germany. The German government appears to have been more effective at using closer cooperation at the ministerial level and trade delegations to bring together German and Nigerian businesses.
UK businesses remain well placed to succeed in Nigeria because of its familiar legal system, strong ties through the diaspora community, and the perception that UK brands offer high quality.