The United Kingdom has urged the Nigerian government to address harmful practices linked to state-owned enterprises that hinder trade and investment.
If this is done, it will accelerate the economic reforms by the Nigerian government.
Simon Manley, the UK’s Permanent Representative to the World Trade Organization (WTO), made this call during Nigeria’s Trade Policy Review in Geneva on Monday, November 18, 2024.
Manley highlighted feedback from British investors in Nigeria, pointing to issues such as harmful subsidies, forced technology transfers, discriminatory enforcement of competition policies, and complex regulatory frameworks.
He emphasized that addressing these barriers would not only boost investor confidence but also enhance Nigeria’s trade performance and economic prosperity.
Hear him; “There are concerns around the impact of state-owned enterprises on the business environment. As the Secretariat noted in its report, as of 2022 around 40 state-owned enterprises were operating in key sectors like energy. These state-owned enterprises, to be honest, often employ market-distorting practices and benefit from unfair competition in our view.
“Other concerns that British businesses investing in Nigeria have raised include examples of harmful subsidies, forced technology transfer, discriminatory enforcement of competition policy and of complex regulatory barriers. And we have indeed picked up on some of those issues and concerns in our Advanced Written Questions.
“So, we would encourage our Nigerian colleagues to address these harmful practices in order to boost investment, boost trade, improve its business environment and ultimately increase Nigerian prosperity.”
However, Manley praised Nigeria’s progress in economic reforms but stressed the need for deeper and faster actions to create a business-friendly environment.
He commended Nigeria’s removal of fuel subsidies and improvements in monetary policy, describing these as bold and necessary steps
