The UK’s export credit agency is set to include the naira on its list of pre-approved currencies, clearing the way for Nigerians and others in the UK wanting to use the currency to make payments or offer financing for business transactions.
According to a Reuters report, the naira will become one of three (two still undisclosed) West African currencies that UK Export Finance has pre-approved for its programme of funding transactions that promote trade with Britain. The naira financing will follow the same structure as for someone buying in sterling, except that Nigerian companies taking out a loan in the local currency can benefit from a UK government-backed guarantee.
‘This is a clear indication of how much value the UK places on its relationship with Nigeria,’ says Paul Arkwright, the British High Commissioner to Nigeria. ‘It will provide a firm foundation for a significant increase in trade and investment between both countries.’
