UK calls for more action to curb harmful business practices

The United Kingdom has urged the Nigerian government to address harmful business practices that hinder trade and investment, specifically those involving state-owned enterprises.

This request was made in Geneva during Nigeria’s Trade Policy Review by Simon Manley, the United Kingdom’s Permanent Representative to the World Trade Organization (WTO).

State-owned enterprises, particularly in sectors like energy, have been accused of distorting markets and stifling competition. According to a report from the WTO Secretariat, around 40 state-owned enterprises were operating in key sectors, often employing practices that hinder private sector participation and economic growth.

Manley emphasized the need for Nigeria to address these distortions swiftly in order to create a more conducive environment for investment and trade.

Manley also highlighted several concerns from British businesses, including harmful subsidies, forced technology transfers, and discriminatory enforcement of competition laws. He stressed that these regulatory barriers complicate the business environment for foreign investors, discouraging further investments.

Addressing these issues, Manley suggested, would not only improve trade and investment flows but would also enhance Nigeria’s overall economic prosperity.

Despite these concerns, Manley acknowledged the positive strides Nigeria has made in its economic reforms, particularly the removal of fuel subsidies and adjustments to monetary policy. He praised these efforts as bold and necessary, yet he called for deeper and faster reforms to support a more open and business-friendly market.

Manley also pointed to the African Continental Free Trade Agreement (AfCFTA) as an important development for Nigeria, noting that the country’s participation in the Guided Trade Initiative marks significant progress. He expressed hope that the implementation of the AfCFTA’s Digital Trade Protocol could reduce trade costs and unlock the full potential of the digital economy, benefiting Nigerian businesses and consumers alike.