Impact of Brexit on UK-Nigeria International Relationship

Running head: DISSERTATION
Dissertation
Name of the student
Name of the university
Author note

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Executive Summary
This study had evaluated the impact of Brexit on the international relationship between United
Kingdom and Nigeria. The different types of impacts on Nigeria due to Brexit has been
evaluated and the findings of the study shows that foreign direct and prices of oil has been
heavily affected by Brexit. The study has used secondary research to collect relevant data from
different journals and articles. The study has provided relevant conclusion and recommendation
based on the findings.

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Table of Contents
1.0 Introduction................................................................................................................................4
1.1 Background of the study............................................................................................................4
1.1 Research objective.....................................................................................................................6
1.2 Research question......................................................................................................................6
2.0 Literature review........................................................................................................................7
2.1 Economic impact of Brexit on UK............................................................................................7
2.2 Principle issues for African nations...........................................................................................8
2.2.1 Commonwealth network in Africa.........................................................................................8
2.2.2 Foreign direct investments....................................................................................................10
2.2.3 Aid in Africa.........................................................................................................................11
2.2.4 African security....................................................................................................................12
2.2.5 Nature of relationship...........................................................................................................12
2.3 Conclusion...............................................................................................................................13
3.0 Research methodology.............................................................................................................13
3.1 Research Philosophy................................................................................................................14
3.2 Research Approach..................................................................................................................14
3.3 Research Design......................................................................................................................15
3.4 Data collection and analysis....................................................................................................15
3.5 Sampling..................................................................................................................................16

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3. 6 Reliability and Validity...........................................................................................................16
3.7 Ethical Consideration...............................................................................................................17
4.0 Findings and Analysis..............................................................................................................17
4.1 Nigeria foreign direct investment and trade relations..............................................................17
4.2 Aid in Nigeria..........................................................................................................................18
4.3 Impact of prices of Oil and capital..........................................................................................18
5.0 Conclusion...............................................................................................................................19
5.1 To identify the implication of Brexit on the relationship between United Kingdom and
Nigeria...........................................................................................................................................20
5.2 To provide suitable recommendations that will facilitate in minimizing damage for Nigeria 20
References......................................................................................................................................22

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Topic: The effect of Brexit on United Kingdom’s and African international relations: “A case
study of Nigeria”
1.0 INTRODUCTION
This research paper has aimed to examine the probable impact of Brexit on the African
union especially Nigeria. United Kingdom has been responsible for developing an effective trade
relationship with European Union which has been defined the Cotonou agreement. African
Nations like Nigeria are dependent on this trade relationship and there are certain consequences
that they will have to face due to Brexit. The controversial discussion of the impact of Brexit on
the African nations had led to the development of the grim predictions from the sceptics. As
stated by Kohnert (2018), the commonwealth states of Africa will face will face grave issues due
to Britain’s exit from the European Union. However, it will take time to fully understand the
impact of Brexit on the African nations and unless Britain makes their exit in March of 2019,
every theory and prediction is tentative in nature.
1.1 BACKGROUND OF THE STUDY
The African business community were aware of the fact that Brexit will have a deep
impact on the growth of the economy. United Kingdom has been instrumental in supporting
development and facilitate aid for all the African nations (Adler-Nissen, Galpin and Rosamond
2017). Moreover, when the United Kingdom had led the presidency of G8, many pro African
programs were implemented which could not have been possible if other nations were presiding
as they are more inward looking.
Brexit is a term defining the exit of Britain from the European Union. A referendum was
held where every citizen were allowed to participate where they could vote for or against the exit

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of Britain. The motion of leaving the European Union won by a vote of 51.9% out of the 71.8%
of the total population being the participants. In breaking down the result it was seen that
England and Wales voted for Brexit. On the contrary, Scotland and Northern Ireland voted
against Brexit and wanted to stay in the European Union. European Union is the partnership
formed between 28 countries in Europe based on political and economic relations (Farrell and
Newman 2017). The formation of the European Union facilitated in developing a single market
which allowed free trade and movement of people from one country to another country within
Europe. However, for a smooth transition, both the parties have proposed 21 months of time to
re-establish the new relationship.
Brexit has already affected the economy of the country. The corporate organizations
feared that Brexit would impact the trade relations between European Union and United
Kingdom. However, the Prime Minister had promised the business community that Brexit would
not affect the free trade between the countries but the negotiation has fallen short. This is a big
area of concern for the organizations in United Kingdom which will have a huge impact on the
business of the organizations (Sampson 2017). The business leaders have been calling for a
second vote which shows the grave impact Brexit will have on United Kingdom’s economy
which will in turn affect the economy of African Countries. Moreover, the most current likely
scenario is the fact that Britain may have to leave the European Union without any proper deals.
This means that free trade zone between United Kingdom and EU will be abolished, United
Kingdom being the link between the African commonwealth nations and European Union, the
trade relations are expected to more severe than expected.
United Kingdom has been one of the top importers of goods to Nigeria and companies
like Shell has invested a huge sum of capital and owns one third of the oil produced in Nigeria.