The concept of individuality which Britain has been yearning for a long time has finally come to reality. As the decision is still digging through a hole of mixed feeling between the countries ( England, Scotland, Wales, Ireland) that make up the Great Britain, European Union on the other has their experts in various circles working on the impact Brexit will have on them.
However to bring forth a local smell to the Brexit, our list will fully expatiate on the various means the Nigerian government can fully capitalize on the recent exit of the Great Britain from the EU.
Here are the ways the Nigerian Economy can benefit from Brexit.
Fixed Income investors will benefit
Fixed Income investors will benefit, they can invest and hedge their investments, at the Nigeria FX Futures, and giving them confidence that they can exit at will. Those who import from the UK will also benefit from the devalued Naira, particularly manufacturing companies with UK ties. Parents who have children in the UK also will be able to buy the pound Sterling cheaper. This will compensate them for the loss in the value of the Naira. Because Nigerians spend a large proportion of their FX expenditure in the UK, Nigerians will save some money from the lower valued Sterling. The negative is the Asset values of Nigerians investing in the UK will also go down.
Will boost Nigeria’s foreign exchange
Central Bank of Nigeria (CBN) said that the decision of the British people to leave the European Union (EU) will boost Nigeria’s foreign exchange policy. Commenting on the outcome of the British referendum, CBN Deputy Governor, Economic Policy, Dr. Sarah Alade said that the bank expected Britain’s vote to exit the European Union to be good for its forex policy as interest rates are likely to stay low in the U.S., channelling foreign investors to Nigeria. “We only need to take advantage of this opportunity to grow the economy,” she said.
Opens Door For Nigeria In EU
Already there are strong reports that the EU could reach a par with Nigeria (not for us to join them o) to woo us into doing trade with them. Belgium is the European country that Nigeria Trades with the most followed by Netherlands. However, the Brexit is an avenue for Nigeria to boost its trading relationship with other European nations like France, Spain etc.