…As LCCI warns: neglect Non-tariff Barriers, jeopardise continental economic integration***
The Federal Government on Wednesday declared in Ibadan that it may not sign the African Free Trade Agreement (AFCFTA) for now, because of its implication on the nation’s economy.
The Special Adviser to the President on Economic Matters, Dr Adeyemi Dipeolu, indicated this at the 60th anniversary lecture of the Department of Economics, University of Ibadan, stressing the nation’s commitment to only what would benefit Nigerians.
“Nigeria’s reluctance in signing the African Free Trade Agreement is based on the commitment to ensure that only what will benefit its economic interest is implemented as a policy,’’ Dipeolu said.
He further explained that Nigeria would not rush into signing something that may eventually make it a dumping ground.
Dipeolu who is the chairman of the occasion however, said there was the need for Nigeria to diversify into export and increase its revenue base.
“We have to look at the current theory to influence our trade policy while our policy on transshipment must be addressed, ” he said.
He therefore challenged educational institutions to take the lead in championing economic analysis on policy issues.
Also speaking, the Coordinator, African Trade Policy Center (ATPC), United Nations Economic Commission for Africa (UNECA) Dr David Duke, said African countries must have a strategy to benefit from the agreement.
Duke who is the guest lecturer spoke on the topic: Economic Rationale of the African Continental Free Trade Area.
He said it was important for African countries to open up their economies to encourage intra-regional trade in order to boost their Gross Domestic Product (GDP) and employment.
Duke noted that Nigeria would benefit from intra-African trade as it would become a game changer in stimulating growth and boosting industrialisation.
He further stressed that African countries need to check external trading with the rest of the world by encouraging intra-African trading.
“The agreement may well offer better opportunities for African economies to industrialise than African relations with external partners,” he said.
Meanwhile, the Lagos Chamber of Commerce and Industry (LCCI) has warned that the desired regional and continental economic integration will remain elusive, if the use of Non-tariff Barriers to Trade (NTBs) among African countries is not addressed.
The President, Lagos Chamber of Commerce and Industry (LCCI), Mr Babatunde Ruwase made the observation at a forum on ECOWAS Integration and the Challenges of Nigerian Traders in Ghana on Wednesday in Lagos.
Non-tariff Barriers to Trade (NTBs) are trade barriers that restrict imports or exports of goods or services through mechanisms other than the simple imposition of tariffs.
Ruwase said that the region offers potential market of 386 million people, and such opportunity might be unattainable without full market integration.
According to him, the use of domestic policies that negate the spirit of economic integration in the sub-region limit bilateral ties among member countries.
“After 43 years of ECOWAS, we are still grappling with numerous tariff and non-tariff barriers to trade.
“There are numerous institutional and infrastructure problems militating against the lofty objectives of ECOWAS.
“We, therefore, need to tackle the current frustrating barriers to trade in the sub-region.
“The trade treaties are not being fully implemented. Compliance levels are very low and commitment to the trade protocols is very weak,’’ he said.
Also, Chukwuemeka Nnaji, President, Nigeria Union of Traders Association, Ghana (NUTAG), said that Ghana’s use of its Ghana Investment Promotion Centre (GIPC) Act 865, Section 27 (1a) of 2013, flouts the provisions on rules of engagement.
Nnaji said that while Ghana continues to enjoy the privileges conferred on ECOWAS citizens in the region, the government and its people continue to prohibit other citizens from doing same in Ghana.
“Despite the discussions between Nigerian and Ghanaian Governments at the United Nations General Assembly in New York, the ordeal of Nigerian traders in Ghana escalated as the Ghana Union Traders Association took a different turn by attacking businesses in the Ashanti Region.
“Getting a residence permit is more difficult than getting U.S green card. The conditions are enormous.
“Already, we are advising Nigerian traders to leave Ghana until the challenges are addressed, especially as Ghana Immigration Services are equally cracking down on foreigners, particularly Nigerians,” he said.
Also, Sintim Barimah-Asare, Representative of the Ghana High Commission, appealed for calm and understanding among operators, adding that his country remains committed to the ECOWAS Treaty.
Barimah-Asare said that Ghanaian Government seeks to protect its petty traders from undue competition.
According to him, the GIPC Law is for medium and large enterprises and not for micro businesses.
In her remarks, Ms Abiola Ogunbiyi, Representative of the Nigeria-Ghana Business Council, sought for understanding of the provisions of the ECOWAS Treaty.
Ogunbiyi pointed out that while provisions of the regional integration treaty presupposes that things are working, the reality was different.