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During the next 11-months that Britain will be reviewing its relationship with the EU, Nigeria will have to make quick resolutions. Brexit could be an avenue to more opportunities and stronger ties for Nigeria and Britain or could also be disadvantageous. Here is a better way we believe Brexit should be analysed from the Nigerian viewpoint.
Britains GDP After Brexit – how it affects Nigeria
Trade and ties are great elements of risk for Britain. But the British economy collapsing due to Brexit is an even bigger risk. The country’s GDP growth rate began slowing down by 0.4 per cent in the first quarter of 2016. If the exit of Britain goes the wrong way and their economy shrinks further, both South Africa and Nigeria undergo the ripple effect. It is not an accident that South Africa’s economy diminishes whenever the British economy does.
Trade between Nigeria and Britain post-Brexit
There’s a lot of people confused about the trade stance between Nigeria and Britain after Brexit. To most, Britain’s economic ties with Nigeria are unshakable and will grow stronger. However, all of Africa is going to face a difficult time post-Brexit and there’s a reason for that.
What’s also more certain is that the EU used to arrange all trade policies between Britain and Africa and that will change. Existing agreements might also be unimplemented or renegotiated. If there is going to be a new negotiation process, it might take a while. During this waiting time exports to the UK might get complicated.
Investors in Nigeria
Nigeria’s dependency on the UK for certain trade is causing panic amongst investors. They are watching as the global demand for the country’s assets slow down.
Also, the chances that the UK Department for International Development would complete its portfolio of 40 projects in Nigeria is now bleak.
Immigration of Nigerians
Without certainty which visa policies will be affected, more challenges in immigration for Nigerians will commence almost immediately. Both Nigerians currently residing in the UK and who intend to travel for any purposes will feel the effect of Brexit. The emerging markets and frontier asset markets will be affected too.
The Regional Bloc in Africa
Brexit perforates the idea for a regional economic bloc in Africa which was greatly dependent on the progress of the European Union. Moreso, after much Brexit evaluation, both Britain and Nigeria would feel the impact of exiting economically and politically.
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