Brexit will have negative impact on Nigeria’s economy

The Abuja Chamber of Commerce and Industry says Britain’s decision to leave the European Union will have negative consequences on Nigeria’s economy.
This was contained in a statement signed by Tony Ejikeoyen, the President of ACCI, on Sunday in Abuja.
The statement said: “Now that the referendum has taken place, the first practical impact of Brexit is that the pound and Euro is already falling against the dollar on the foreign exchange markets, which is encouraging for the Naira.
“The markets anticipate that Brexit may be bad for the economy, and so investors are likely to move their money out of the UK.”
Ejikeoyen said Brexit will no doubt create anxiety for Nigeria’s policy makers.
According to him, this is due to slide in global markets at this time that Nigeria is trying to revive the economy which is at the edge of a recession.
The ACCI boss said bilateral trade between Nigeria and the UK, currently valued at £6 billion and projected to reach about 20 billion pounds by 2020 would affected.
Ejikeoyen said this might be disrupted as trade agreements contracted under the umbrella of the EU had to be renegotiated.
The statement said: “Besides, data from the National Bureau of Statistics shows that the UK was Nigeria’s largest source of foreign investment in 2015.
“Thus, a decelerating British economy could impact a drop in investment, trade, and also remittances from the Nigerian diaspora who sent home over $20 billion in 2015.
“In addition, reduced trade and investment from Britain may not necessarily be taken up by the rest of the EU.”
Ejikeoyen said a shrinking UK economy would definitely have a significant impact on aid programmes to Nigeria, especially DFID programmes, which have been a burning political issue in the UK.