While addressing the press on the effects of the Brexit development on Nigeria and Africa, President of the Nigerian-British Chamber of Commerce (NBCC), Dapo Adelegan, says the exit of Britain from European Union (EU) will not have short-term effects on Nigeria’s economy.
Adelegan said the existence of different trade agreements between Nigeria and European countries that trade directly with the country will prevent a short-term impact of the Brexit on the economy.
“We sell directly to these countries and they also buy from us; I do not see a short term impact of the exit on Nigeria’s economy,” he stated.
The British people voted for Britain’s exit from the EU in a historic referendum on June 23, which led David Cameron to resign as Prime Minister.
“It cannot be seen as a total victory for the Brexit. If half of the population wants to remain and half says go, it means that there will be internal political repercussions within Britain’s political environment. It may even lead to further referendum in years to come because the new government that will succeed David Cameron will have to win back majority of the people that wanted to remain to buy into the exit posture,” he said.
On the economic side, Adelegan said that the exit would diminish British role as the gateway to Europe in terms of business opportunities and global travel.
“Institutions that have invested in the U.K. as a channel to offer products and services to other parts of Europe, this exit will deny them that access. A market of about 500 million consumers reduced to about 65 million will require a rethink of strategy by global companies”
“We may begin to see the movement of global companies to Switzerland and Germany in the next few months,” Adelegan remarked.
Adelegan also added that the Brexit development will affect the value of the British currency against the Dollar and the Euro.
Nigeria is Britain’s second largest trading partner in Africa with a trade volume which currently stands at six billion pounds (about N2.48 trillion).
