Osinbajo: AfCFTA Will Boost Nigeria’s Economy, Transform Export Potentials
• Allays fears of AfCFTA leading to dumping of foreign goods
• Says blue sea, single window projects to be implemented
The African Continental Free Trade Agreement (AfCFTA) will boost Nigeria’s economic development and raise export potentials, the Vice President, Prof Yemi Osinbajo has said.
According to the Vice President who spoke during the Financial Derivative Company (FDC) stakeholders’ meeting held in Lagos Monday in a matter of time AfCFTA will increase Nigeria’s export by eight percent.
Osinbajo who was represented on the occasion by the Senior Special Assistant to the President on Industry, Trade and Investment, Dr. Jumoke Oduwole, said that beyond signing the agreement, the federal government has moved ahead to check issues that are likely to affect the country’s growth.
He said the agreement will improve on export of semi and fully finished goods, adding that . AfCFTA will be a catalyst for investment and GDP growth in the country.
Part of Osinbajo’s statement reads: “The AfCFTA can transform Nigeria from a target economy to the gateway economy by boosting job creation through increased intra African trade and spurring growth through enhanced economic welfare with an estimated eight per cent increase of Nigeria’s total export.
“In spite of the fact that Nigeria only just signed the AfCFTA, in terms of readiness, we are not at ground zero. At $35.45billion, Nigeria’s manufacturing value-added, a measure of a productive capacity to produce and export semi and fully finished goods, is about seven times more than the current average for the top 20 African countries. This suggests Nigeria’s productive capacity is at a higher level than that of most African countries. However, as an administration, we are well aware that there remains a lot to be done.
“The concerns raised by some Nigerian stakeholders about the risks with the AfCFTA are not without merit. Even prior to the agreement, the policy thrust of this administration had identified and focused on many of these priority areas in the competitiveness pillar of the Economic Recovery and Growth Plan (ERGP 2017-2020) directly speaks to the hard infrastructure challenges as well as the reforms required to deliver an enabling business environment for businesses operating in Nigeria to thrive under its competitiveness pillar initiatives since 2016.”
Osinbajo added that part of Nigeria’s preparation for the AfCFTA was the plan for the provision of adequate and uninterrupted power for businesses which include the implementation of the Power Sector Recovery Plan (PSRP).
He recalled that only last week the President signed a power agreement with Siemens that will significantly ramp up Nigeria’s power generation to 25,000MW by 2025.
Osinbajo said that in addition, government is intensifying efforts towards positioning the private sector to utilise 2,000MW of stranded power under the eligible customer (willing buyer-willing seller) declaration.
According to him, “Our energising economies’ initiative is also supporting the rapid deployment of off-grid electricity solutions to MSMEs in economic clusters such as markets across the country – Ariaria in Aba and Sabon Gida in Kano to mention a few- shopping complexes and agricultural and industrial clusters”.
The Vice President also said that the federal government was working hard to accelerate other infrastructure gaps in the areas of sea and airports, railways and broadband.
He said, “The completion of the various transport infrastructure projects will continue to receive adequate priority from this administration. For example, the Lagos-Ibadan section of the Lagos-Kano standard gauge line is nearing completion; the Abuja-Kaduna section has been in operation for the last two years.
“We are committed to the construction and rehabilitation of the Lakaji and the Port Harcourt to Ngala corridors, as well as their connecting and feeder roads. We have also taken steps to revitalise the decades old Inter State Road Transit Scheme (ISRTS) by releasing some of the required counterpart funding to Nigerian Export-Import (NEXIM) Bank in 2017.
“Our ports must, as a matter of urgency and necessity, become more efficient in expectation of increasing trade volume. With the National Trading Platform, we are implementing a single window portal and installing scanners at the seaports in a view to limiting physical examination of containers that has lengthened cargo clearance time.
“Consistent efforts are also being made to unlock traffic congestion around Lagos port facilities, as well as implementing the NIMASA’s Deep Blue Project for improved maritime security” .
He assured that government was working hard to ensure that Nigeria will not be a dumping ground as a result of being part of the AfCFTA arrangement.
According to him, dumping will be checked through the
“use of trade remedies anti-dumping and countervailing measures that allow governments to take actions against injurious trade practices by foreign countries and companies”.
He said such issues of trade threat will require collective support at the highest level of ECOWAS and the Africa Union and Nigeria.
He noted that the Presidential Enabling Business Environment Council (PEBEC), has been able to come up with a strategy of implementing various reforms with “efficiency and transparency of public service delivery, regulatory, legislative and judicial reforms at both federal and subnational levels”.
PEPEC’S four National Action Plans since 2017, he said, have delivered tangible reforms and impactful results particularly for SMEs.
He said PEBEC’s fiscal policy is being fine-tuned to placate for AfCFTA’s potential impact on government revenues with a review of tax laws and administration strategies.
According to him, “concern of unintended consequences of regional trade integration such as income inequality and distribution are being resolved through trade openness and improved infrastructure across the board so that rural areas can gain a higher income from exports of agricultural goods.”
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