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UK To Start Accepting Naira

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The Nigerian currency, the naira has gotten a major boost on the international market as the UK Export Finance Agency has included it in the list of “pre-approved currencies” for trade transactions.

This will make the naira one of one of three West African currencies that UK Export Finance agency has pre-approved for its programme of funding transactions to promote trade with Britain. The remaining two are yet to be revealed.

This will greatly ease transaction for Nigerians in the UK,  it will enable the use the naira to make payments or provide financing for transactions denominated in the local currency would be able to do so. The only exception, the statement said, would be in the area of loans taken in local currency, which must equally be repaid in local currency.

This decision is one of the fallouts of Brexit which is beneficial to Nigeria.

“This is a clear indication of how much value the UK places on its relationship with Nigeria. It will provide a firm foundation for a significant increase in trade and investment between both countries,” Reuters quoted the British High Commissioner to Nigeria, Paul Arkwright, to have said in a UK’s credit agency statement on Friday.

The statement said the UK government would provide up to 85 per cent of funding for projects containing a minimum of 20 percent British content.

“The Naira financing will follow the same structure as someone buying in Pound 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.”

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Akin Akingbala is an international journalist based in Lagos, Nigeria. Aside being happily married, he has interests in music, sports and loves traveling.

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