As Britain’s exit from the European Union takes more shape with the recent deal, economists have cautioned that Brexit may affect Nigeria’s $8 billion trade with the UK.

They argue that if Brexit impacts negatively on the British economy, it would in turn dwindle Diaspora remittances to Nigeria which is a major source of inflows into the country.

According to Nigeria’s first professor of Capital Market, Uche Iwaleke, of the Nasarawa States University, Brexit may stifle emigration to Britain by Nigerians and so Diaspora remittances could drop if the deal hurts British economy.

He explained that Britain still remains the largest source of capital inflow into Nigeria, citing the National Bureau of Statistics.

British investment flow to Nigeria would also be imperilled if its economy is affected negatively by Brexit, Iwaleke added.

The university don is, however, optimistic that as Nigeria’s colonial master, the UK will have the greater freedom to relate with Nigeria the way it deems fit without recourse to EU rules and regulations.

“As the former colonial master, Britain will now have the freedom to deal with Nigeria as opposed to if they are dealing with us a bloc.

“Her membership of the EU serves as a constraint on what the UK can do with Nigeria. Now that it is pulling out of the EU, the freedom to relate with Nigeria will be limitless.

“Again, trade negotiations with Nigeria

will no longer be with a single bloc which becomes a little more complex,” the professor of capital market said.

Principal Research Fellow, National Defence College, Abuja, Dr Chinedu Udeh, also weighed in on the mixed optimism of Brexit.

He said that with the UK’s exit from the European body, “migration to Britain by Nigerians will become more difficult and so Diaspora remittances could drop.

“We are going to see the impacts in the areas of immigration. It might become difficult for more people to go to UK.

“Before now, some Nigerians will go through other EU countries, get EU passport before moving to the UK. Once the deal is sealed as expected sometime in March 2019, accessing EU passport as a means to gain access to the UK will become difficult.

“If the deal hurts the British economy, foreign investments in Nigeria could be affected as Britain has remained the largest source of capital importation in Nigeria for many years now, according to the National Bureau of Statistics.”

Udeh also spoke on the impact of Brexit on the European body.

“The first implication is for the European Union, in terms of trade emigration and jobs. The UK has very powerful influence in the EU. It is the second largest contributor to their budget. As a matter of fact, it contributes 11.5 billion euro to EU budget, Germany contributes about 15 billion euro or so. So, UK’s withdrawal will put lots of pressure on other countries, in terms meeting their budget or they have to cut down the budget.”

Udeh, however, sees some positives impact for non-European workers, including Nigerians.

“On the positive side – let me be optimistic, a lot of the workers that are coming from the EU might not be able to gain access to EU freely.

“In terms of labour, it means citizens of non-EU countries like Nigeria in the UK will be able to get jobs.

“Brexit may favour Nigeria in the area of improved trade with the UK. These are possible scenarios that may play out.”

On the visits of Prince Charles and Prime Minister Theresa May within the interval of three months, Udeh said it could be due to the search for new markets by the UK.

“If eventually the UK exits the EU, its market will certainly shrink. So, they ought to look for new market.

“Brexit also has implications for separatist agitation in Nigeria. It could fuel such sentiments. It may also impact negatively on

development assistance from the UK because if Britain’s economy shrinks, it may cut overseas aid. There could be increased educational opportunities for Nigeria but tougher visa regime.

‘I wish it does not happen because of its wider implications for the Europe and Nigeria in particular,” he stated.

On his part, the former Vice Chancellor of the University of Abuja and Sokoto State University, Professor Nuhu Yakubu, believes that Brexit could become the silver lining for the Nigerian economy in dire need of investment.

“It is clear that Britain is looking for friends because it is winding down on its membership of the European Union. This could become a window of opportunity for Nigeria to exploit. For instance, the prime minister, Theresa May, was here in August, and two months later, the heir apparent to the British throne, Prince Charles, came for an elaborate visit. These visits are certainly not a jamboree but looking for new opportunities, which Nigeria can tap into.”

LEADERSHIP Sunday reports that Nigeria is Britain’s second largest trading partner in Africa after South Africa, with £6 billion (about N2.4 trillion or $8.52 billion) in bilateral trade volume last year.

It is feared that the deal hurts UK, its GDP would shrink over time and a weaker and smaller UK economy would scale back its investment in development projects in Nigeria.

Also, Britain is expected to be very strict on immigration and visa applications especially from countries like Nigeria which has plenty visa applicants to the United Kingdom, with already an estimated two million Nigerian migrants in the country.

Another possible outcome, analysts say, is that investment in Britain by Nigerian businessmen would be less attractive since the country would no longer offer full access to the lucrative EU market.

http://mcebiscoo.com/2018/12/02/brexit-puts-8bn-nigeria-uk-trade-at-risk/

Ok

Blame Buhari
#Sarcasm

I see the UK and US forming a great alliance in the future after brexit to dominate world affairs. I don't see the UK economy getting hit too much. a few years after brexit, everything will be okay again. I have always been a fan of brexit as I feel Europe has been holding them back

This is indeed a major source of concern because Buhari and his cabinet don't seem to know Jack about expanding and diversifying Nigeria's trade and investments opportunities globally.

The third world countries or developing nations will pay for it through direct or indirect means

While we await more investment opportunity due to our Commonwealth ties

Brexit kor Brazier ni...
Next pls!

So many things wrong with this Brexit. Even the British are angry at their own decision now to exit the EU.

noturbusiness:
I see the UK and US forming a great alliance in the future after brexit to dominate world affairs

keep Dreaming UK economy is going down. watching investments and companies pull out.

ok

Buharis plan to exterminate chritians in the north and islamize the whole nigeria is being perfected

He knows the northern christian are militant and will match him fire for fire so he is using his proxy terrorist killers to murder them.

Buhari is the greatest evil Nigerian. Christians have ever known

He plans for force Islam on all of us and wipe out the resistant groups systematically .. The south east and Christian northerners

He will enforce Islam on every single state in nigeria and make sharia law a federal law

Vote out buhari at all costs next year

Lord Jesus will stand with us

The holy ghost has exposed their unholy plan

We christians do not force anyone to convert so why does buhari want to force us?

Buhari is pure evil

Her membership of the EU serves as a constraint on what the UK can do with Nigeria. Now that it is pulling out of the EU, the freedom to relate with Nigeria will be limitless.

Cheers

In as much it will not affect my farming business, I wish them good luck in their exit from Europe.

Shookonekilla:
Buharis plan to exterminate chritians in the north and islamize the whole nigeria is being perfected

He knows the northern christian are militant and will match him fire for fire so he is using his proxy terrorist killers to murder them.

Buhari is the greatest evil Nigerian. Christians have ever known

He plans for force Islam on all of us and wipe out the resistant groups systematically .. The south east and Christian northerners

He will enforce Islam on every single state in nigeria and make sharia law a federal law

Vote out buhari at all costs next year

Lord Jesus will stand with us

The holy ghost has exposed their unholy plan

We christians do not force anyone to convert so why does buhari want to force us?

Buhari is pure evil

Lol you guys are still campaigning with this stale jab?

Mercurypanther:
keep Dreaming UK economy is going down. watching investments and companies pull out.

.it is the EU that is going down. EU is conspiring with the media to create fear so the UK can call on another referendum and maybe decide to stay

I live in the UK and now I know all these analysts sometimes do not know shit. Brexit is the best thing to happen for Nigeria skilled workers. Europeans high skilled workers don't need visas presently, after Brexit, that changes. Europeans, Asians, Africans will now apply on same point base system just like what you have in Canada and Australia.
As much as there is a very big uncertainty about the UK economy but saying Naija go loose naa practical lie but a time for my people to see the opportunities coming.

noturbusiness:
I see the UK and US forming a great alliance in the future after brexit to dominate world affairs. I Sancho don't see the UK economy getting hit too much. a few years after brexit, everything will be okay again. I have always been a fan of brexit as I feel Europe has been holding them back

Between UK and Germany which one is Europe holding back more?

noturbusiness:
I see the UK and US forming a great alliance in the future after brexit to dominate world affairs. I don't see the UK economy getting hit too much. a few years after brexit, everything will be okay again. I have always been a fan of brexit as I feel Europe has been holding them back

I still believe Britain has gone through the pros and cons and have a reason to want out of EU. One they can't tell anyone now.

A wild guess could be what you just mentioned. But I feel its more than just that.
But remember, they've already got a special relationship with the US

Going back and seeing how the Brits operate, I know something is brewing.

And I just don't see how it'll affect a 'former colony' that much. The figures are exaggerated and maybe a way to make some billions grow wings or get swallowed by another animal, maybe goats eating the funds this time.

iammo:
While we await more investment opportunity due to our Commonwealth ties

All the Commonwealth countries are independent.

What is the almighty Buhari planning to do to shield us from this issues is what is important not Atikus imaginary visa ban.

correctguy101:


I still believe Britain has gone through the pros and cons and have a reason to want out of EU. One they can't tell anyone now.

A wild guess could be what you just mentioned. But I feel its more than just that.
But remember, they've already got a special relationship with the US

Going back and seeing how the Brits operate, I know something is brewing.

And I just don't see how it'll affect a 'former colony' that much. The figures are exaggerated and maybe a way to make some billions grow wings or get swallowed by another animal, maybe goats eating the funds this time.

It was a great mistake they regret! Migration was the main motivation but the people who voted were to ignorant about its economic impact.

BabaIbo:
Brexit kor Brazier ni...

Next pls!

Ignoramus.

brodalokie:


All the Commonwealth countries are independent.

but share bilateral trade agreement

Sanchiworld:



Between UK and Germany which one is Europe holding back more?

Germany pay a little more to the EU budget than the UK but Germany benefits most from trade agreement. the EU is like a German colony as only Germany account for about 26% of EU free trade exports. the UK only account for less than 8% of EU exports and they pay almost same amount of money as Germany to finance EU.
Germany pay more and get more while the UK pay more and benefit less from the EU