Nigerians and others in the United Kingdom who wanted to use Naira to make payments and for financing business transactions would be able to do so as the UK Export Finance Agency has announced that it would soon add Naira to its list of “pre-approved currencies” for trade transactions.
According to Reuters, Naira would soon become 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 other two national currencies were not disclosed.
“This is a clear indication of how much value the UK places on its relationship with Nigeria,” Paul Arkwright, the British High Commissioner to Nigeria, said in the UK’s credit agency statement. “It will provide a firm foundation for a significant increase in trade and investment between both countries.”
Bismark Rewane, head of Lagos-based consultancy Financial Derivatives said “If I buy a Rover, the British government is now guaranteeing that I can pay in naira, so the foreign exchange risk has been shifted from me to the Nigerian government.”
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“If the Central Bank of Nigeria is unable to remit funds to the UK, then the liability will be on Nigeria,” he added.