Business
Expert Lauds UK’s Pre-Approval Of Naira As Exchange Medium
The United Kingdom Export Finance Agency pre-approved status for the naira as a medium of exchange will enhance the financial position of small and medium enterprises, a financial expert has said.
The Head of Banking and Finance Department, Nasarawa State University Keffi, Prof. Uche Uwaleke, expressed the view in an interview with newsmen in Abuja on Monday.
Uwaleke said that with such development, the naira had joined other 62 pre-approved currencies directly accepted for trade by the UK Government.
The UK Export Finance Agency (UKEF) recently stated that it had concluded plans to include the naira in its list of “pre-approved currencies”.
The granting of a ”pre-approved currency” status by UKEF gives exporters from the UK the opportunity to offer their overseas customers UKEF-backed finance in local currency of the importers.
”It will enhance the financial position of small and medium enterprises as foreign exchange risk associated with international trade is minimised thus eliminating a major source of uncertainty over debt servicing cost of credit facilities.
”Therefore, business enterprises are in a stronger position to negotiate better terms with their banks in Nigeria and avoid variable debt service costs linked to fluctuations in exchange rate,” Uwaleke said.
According to him, the bank in Nigeria will receive a guarantee for full repayment of the loan, it will help to improve the quality of risk assets of Nigerian banks and enhance financial systems stability.
Uwaleke said that the expected increase in Foreign Direct Investments could bring about transfer of technology to small businesses in Nigeria.
”The UKEF flexible financing solutions have been described as the “next best thing to concessionary financing” due to their relatively cheap and flexible nature which is particularly healthy for small business enterprises,” he said.
Uwaleke said that the UKEF pre-approved status for the naira had the potential for strengthening economic ties between Nigeria and Britain.
He said that with the deal, it meant that import bills from the UK could be settled in naira rather than the British pound.
”This deal makes it possible for the importer to access a loan from a bank in Nigeria of at least 85 per cent of the contract sum for a maximum period of two years.He said that under the arrangement, “the Nigerian bank is guaranteed repayment by the UKEF in case the importer defaults.”
According to him, while applauding this UKEF privileged status for the Naira, it is important to note that the British credit agency has not been without knocks especially as it relates to its aggressive export drive.
He said that for instance, Amnesty International has lampooned the agency for lack of transparency and severally accused it of human rights abuses.
Uwaleke, however, said that the Federal Government out to be cautious in embracing the deal, especially as UKEF had been accused of human rights violation issues.
He said Amnesty International report of 2013, entitled ”A history of Neglect: UK Export Finance and Human Rights”, highlighted the concern.
Uwaleke noted that the report stated that UKEF’s “eagerness to help secure new overseas contracts for British companies often comes at the expense of human rights”
He said against such backdrop, the Federal Government should be mindful of these controversies, including the likely impact of the deal on Nigeria’s rising public debt.
Uwaleke said the Federal Government should be concerned since UKEF would coordinate the advance of loans to businesses and entrepreneurs for the purchase of goods made in Britain,
He advised the government to put in place mechanisms to ensure that the loans were essentially for infrastructure-related projects, especially in sectors, such as power, water and transport.
He said that the government should also firm up measures already in place to guard against dumping as this development would ease the importation of goods from the UK.
”In this new deal, the interest of Britain should go beyond export promotion to helping Nigeria, a dependable ally, create the enabling environment for a private sector-led inclusive growth.
”Indeed, the strategy of ”pre-approved currencies” by the UKEF is a clear case of ”thinking outside the box”- a major lesson for Nigeria’s sole export credit agency, the Nigerian Export-Import Bank,” Uwaleke said.
In a concerted effort to tackle racketeering and reduce inflated transportation costs in the Nigeria’s seaports, Trucks Transit Parks Ltd. (TTP) has trained Licensed Customs Agents and Freight Forwarders on the use of its Ètò electronic call-up system.
The training was held recently at Customs Processing Centre (CPC) Auditorium, Apapa, Lagos, in collaboration with the Nigeria Customs Service (NCS) and supported by the leadership of the Joint Association of Licensed Customs Agents and Freight Forwarders (JALCAFF), Apapa Command.
Speaking at the event, Comptroller Babatunde Olomu expressed appreciation to TTP for facilitating the training and emphasized the need for customs agents to take personal ownership of the Ètò booking process.
“I want to thank TTP for this impactful training. I encourage all customs agents to begin doing their own bookings directly. By doing so, they can take back power from the unscrupulous elements exploiting their lack of knowledge, selling tickets at highly inflated prices,” Olomu declared.
He noted that empowering agents with hands-on training was key to dismantling racketeering networks that have plagued access to the ports and frustrated efficient logistics processes.
Also speaking, the Chairman, Apapa Chapter of the Association of Nigerian Licensed Customs Agents (ANLCA), Chief Emeka Chukwumalu, said the engagement was critical to the ongoing push to reduce cargo transportation costs and ease business operations at the Apapa Port.
According to a freight forwarder, “The training is basically for us to have awareness of the operations of the Ètò call-up system through TTP. We also want to brainstorm on ways to reduce the high cost of cargo transportation in Apapa Port.
“This training opened our eyes to how simple it is to book tickets ourselves. We now know the right steps to follow and how to avoid falling victim to fraudsters.”
Earlier, Head of Operations at TTP, Mr. Irabor Akonoman, talked on common misconceptions about ticket pricing, reaffirming that the cost of Ètò bookings had remained consistent since its inception.
“The official price remains the same since inception. What people are paying higher amounts for is the manipulation by racketeers”.
Towards strengthening small businesses and promoting a more supportive regulatory environment, the Nigeria Employers’ Consultative Association (NECA) says it will hold the 2025 edition of its flagship MSMEs Fair on Tuesday (May 6, 2025).
The event, themed, “Galvanising MSMEs for Economic Growth and Stability”, will take place at NECA House in Lagos.
According to NECA’s Director-General, Mr Adewale Smatt Oyerinde, the fair seeks to provide micro, small, and medium enterprises with essential tools, resources, and strategic networks to thrive in Nigeria’s challenging business climate.
He emphasised the vital role MSMEs play in national development, describing them as the “lifeblood of Nigeria’s economy.”
Oyerinde noted that the fair is designed to offer entrepreneurs practical solutions to navigate economic uncertainties, regulatory hurdles, and business scalability issues.
A major attraction of this year’s event is the keynote address by the CEO of FATE Foundation, Mrs. Adenike Adeyemi, a prominent advocate for MSME development.
She is expected to share transformative insights on innovative strategies for sustaining and growing small businesses in Nigeria.
A unique feature of the fair will be interactive sessions with key regulatory bodies. Entrepreneurs will engage directly with agencies responsible for licensing, compliance, taxation, and business registration.
NECA said these sessions aim to demystify bureaucratic processes and foster a more enabling business environment.
It also said the fair will provide a platform for entrepreneurs to exhibit their products and services, connect with potential investors, and explore new markets.
It added that participants would gain critical knowledge on digital transformation, access to finance, and strategies for sustainable business growth.
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· NECA stressed that the fair aligns with its broader mission of promoting enterprise development and economic resilience.
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· “By empowering MSMEs with the right support and information, the organisation aims to stimulate job creation, innovation, and long-term economic stability”, NECA said.
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· The 2025 MSMEs Fair is expected to attract a wide range of stakeholders, including financiers, tech experts, regulators, and industry leaders, all united in advancing the growth of Nigeria’s MSME sector.
The Lagos State Commissioner for Transport, Mr Oluwaseun Osiyemi, says over two million passengers have been transported on the Blue Line Rail since its launch, while state-run buses move an average of 42,000 commuters daily.
Osiyemi, who disclosed this during the Year 2025 Ministerial press briefing held at the Bagauda Kaltho Press Centre, Alausa, on Tuesday, noted that the Lagos State Transport Policy, launched in May 2024, was now in its implementation phase, focusing on inclusivity, safety, affordability, and sustainability.
“On rail development, Phase One of the Blue Line (Marina to Mile 2) has served over two million passengers, with Phase Two (Mile 2 to Okokomaiko) in progress.
“Phase One of the Red Line (Agbado to Oyingbo) is now operational with eight stations and additional rolling stocks procured, while Phase two (Oyingbo to link Blue Line at National Theatre) is underway”, he said.
The Commissioner said in the state-owned bus operations, over 60 million commuters have been served since 2019, with daily ridership exceeding 40,000.
He also said plans were on to deploy new buses with Quality Bus Corridors under construction, adding that the Abule=Egba Bus Terminal had also been commissioned.
“For water transport, 15 locally-built Omibus Ferries have been launched and are in operation, with the Ijegun Egba Terminal now open.
“The OMI EKO project, in partnership with the French Development Agency (AFD), will deliver 25 terminals and 78 electric ferries.
“Over 280,000 passengers have used ferry services in the past year, and 12 boats have been upgraded to meet safety standards”, he said.
On road infrastructure and traffic management, the Commissioner said 49 junction improvement projects had been completed, including ongoing ones at Ikorodu, Iju, as well as Allen-Opebi-Toyin axis.
He added that solar-powered Traffic Signal Lights, road markings covering 67.9km, new medians, laybys, and 3,941 parking lots had also been provided.
Additionally, Osiyemi announced that the deployed Automatic Number Plate Recognition cameras had detected over 470,000 traffic violations and that the Vehicle Inspection Service issued over one million roadworthiness certificates.
He also said that the Lagos State Drivers’ Institute trained more than 32,000 drivers in the past 13 months.
The event marked the second anniversary of Governor Babajide Sanwo-Olu’s second term, showcasing major strides in the transport sector under the THEMES+ agenda.
Nkpemenyie Mcdominic, Lagos