Britain’s Export Finance Agency has announced plan to add the Naira to its list of “pre-approved currencies”.
This will allow the agency provide financing for transactions with Nigerian businesses denominated in the local currency.
According to Reuters, the Naira will become one of three West African currencies that UK Export Finance has pre-approved for its programme of funding transactions that promote trade with Britain.
“This is a clear indication of how much value the UK places on its relationship with Nigeria”, British High Commissioner to Nigeria, Paul Arkwright said in a statement by the UK credit agency.
“It will provide a firm foundation for a significant increase in trade and investment between both countries”.
The statement said the UK would provide up to 85 per cent of funding for projects containing a minimum of 20 per cent British content.
“The Naira financing will follow the same structure as someone buying in sterling, except that Nigerian firms taking out a loan in local currency can benefit from a UK government-backed guarantee.
“This can enable businesses to manage foreign exchange risks and, many times, to negotiate better terms with local banks,” it added.
Bismark Rewane, head of Lagos-based consultancy Financial Derivatives expressed confidence that the financing deal with the UK would help local importers buy British goods.
“If I buy a Rover, the British government is now guaranteeing that I can pay in naira, so the foreign exchange risk has been shifted from me to the Nigerian government,” Rewane said.
“If the Central Bank of Nigeria is unable to remit funds to the UK, then the liability will be on Nigeria.”

Evidenx:
Britain’s Export Finance Agency has announced plan to add the Naira to its list of “pre-approved currencies”.
This will allow the agency provide financing for transactions with Nigerian businesses denominated in the local currency.
According to Reuters, the Naira will become one of three West African currencies that UK Export Finance has pre-approved for its programme of funding transactions that promote trade with Britain.
“This is a clear indication of how much value the UK places on its relationship with Nigeria”, British High Commissioner to Nigeria, Paul Arkwright said in a statement by the UK credit agency.
“It will provide a firm foundation for a significant increase in trade and investment between both countries”.
The statement said the UK would provide up to 85 per cent of funding for projects containing a minimum of 20 per cent British content.
“The Naira financing will follow the same structure as someone buying in sterling, except that Nigerian firms taking out a loan in local currency can benefit from a UK government-backed guarantee.
“This can enable businesses to manage foreign exchange risks and, many times, to negotiate better terms with local banks,” it added.
Bismark Rewane, head of Lagos-based consultancy Financial Derivatives expressed confidence that the financing deal with the UK would help local importers buy British goods.
“If I buy a Rover, the British government is now guaranteeing that I can pay in naira, so the foreign exchange risk has been shifted from me to the Nigerian government,” Rewane said.
“If the Central Bank of Nigeria is unable to remit funds to the UK, then the liability will be on Nigeria.”

moderators wetin dey happen just a picture of naira una nor allow me upload na so una wicked?

this will benefit both countries businesses. we can buy British products and technology and settles with low risk foreign exchange. there will be mad development if this is true.

WinningSun:
this will benefit both countries businesses. we can buy British products and technology and settles with low risk foreign exchange. there will be mad development if this is true.

its true but we only pray they implement it soon.

WinningSun:
this will benefit both countries businesses. we can buy British products and technology and settles with low risk foreign exchange. there will be mad development if this is true.

Give an example of developments that can be as a result of this deal

nwoke37:


Give an example of developments that can be as a result of this deal

Thanks for the question. They have started rattling that's how analysis where given about Buhari and #145 pump price for pms. Today they have all bow in shame

CBN will keep you in queue for eighteen months. Network will seize.

nwoke37:


Give an example of developments that can be as a result of this deal

have you seen the Mexican pesos. if I give you how will you value it to being given to the dollar.


hypothetically, if you're a british citizen. you came down to Nigeria to work. when leaving Nigeria you don't have to convert your money to dollars then when you get to London you will have to convert to pound sterling. that movements of your money dropped in value due to cost of conversion.

now you can take your naira to the UK and settle transactions with naira. just like paying your rents In dollar in some part of Nigeria.

one other benefits is the circumvention of the US dollar whatever happens to the dollar does not affect our trade with UK. even America go into recession.

I wish we can have same deal with China and Brazil.

emmie14:

Thanks for the question. They have started rattling that's how analysis where given about Buhari and #145 pump price for pms. Today they have all bow in shame

CBN will keep you in queue for eighteen months. Network will seize.

this is what call real development. it will benefit our country more. this is not about exporting a d importing.

Incure the Wrath of skukushuku bambiala


hahahahah

One thing I know is, no foreign government will do anything for an African country without the benefits to them being ten times greater than what the African country will get in return.

GMBuhari:
Incure the Wrath of skukushuku bambiala

hahahahah

haha..who be that one again? ��

Evidenx:
haha..who be that one again? ��

Trump ni , giving money to Buhari is incuring wrath of Liepob's god , its name is shukuka bambiala

GMBuhari:



Trump ni , giving money to Buhari is incuring wrath of Liepob's god , its name is shukuka bambiala

GMBuhari:



Trump ni , giving money to Buhari is incuring wrath of Liepob's god , its name is shukuka bambiala

hahaha.. lol