How Insecurity, Poor Infrastructure, Corruption May Rob Nigeria of AfCFTA Benefits, by Omotosho
Adebayo, Trade and Commerce Minister
*Implementing AfCTA will be a huge step forward for Africa – says NUJ Chairman
By Francis Ugwoke
Insecurity which is threatening Nigeria’s peace, poor infrastructure, corruption and high duties on imported goods among other charges in the nation’s ports have been identified as major challenges in the implementation of the African Continental Free Trade Area Agreement,(AfCTA).
Noting the many benefits of AfCFTA, including giving Nigeria the opportunity to gain access to over one billion consumers and tap into a three trillion-dollar African market with multiplier effect on the national economy, the Registrar of NAGAFF Academy, Mr. Francis Omotosho, said the challenges need to be addressed urgently.
Omotesho who spoke at a workshop organized by the Lagos chapter of the Nigerian Union of Journalists (NUJ) on Tuesday said the security issue in the country was playing a major negative impact as far as AfCFTA was concerned, adding that what was needed was for the government to rise up to its responsibility over the security concerns.
He also identified poor infrastructure in the country, lack of rail connectivity to the ports with poor road network, adding that Nigerian ports were lacking in standard which has been affecting ship traffic into Nigerian ports.
Omotosho equally pointed out the focus of the Nigeria Customs Service on revenue generation with targets being given to it which has resulted in high duties payable on imports.
He said these issues, including corruption in the ports, have forced some shipowners to prefer neighbouring ports to the disadvantage of Nigeria.
He called for the implementation of national single window and the need to sustain Nigeria’s Ease of Doing Business Action Plans and other public reform programmes to reduce bribery, number of check points among others in the ports and border stations.
Omotosho said, “In general terms. some of the potential impacts of the AfCFTA on the Nigerian economy can be summarized as follows:
Access to Greater Continental Market Share: The agreement gives Nigeria the opportunity to gain access to over one billion consumers and tap into a three trillion-dollar African market.
A stronger Industrial Agenda: The treaty will drive the much-needed increase in manufacturing activities. This will, in turn, improve Nigeria’s export earnings and make the manufacturing sector more competitive.
Drastic Reduction of Trade Tariffs: With a substantial % of trade tariffs eliminated from trade among member states, import and export activities will attract record-reduction of the cost of import/export trade and help to drive down the retail cost of commodity goods
Employment Creation: According to the World Economic Forum, the agreement is expected to serve the best interest of Small and Medium-Sized (SME) companies, which accounts for more than 80% employment and 50% of its GDP. With this fresh opportunity to be more competitive, there will be more employment opportunities for all, not just with SMEs but larger corporations.
Increase Foreign Direct Investment: With restrictions lifted on foreign investments, investors will flock to the continent. This adds capital to expand local industries and boost domestic businesses. New capital enhances an upward productivity cycle that stimulates the entire economy”.
“However, our efforts at encouraging shippers’ to participate in AfCFTA trade is replete with the following hurdles:
• Poor knowledge of shippers on content of the AfCFTA agreement
• Challenges of high logistics cost in Nigeria
• Poor infrastructure
• Low connectivity of the Nigerian ports
• Export Cost/Low value of export
• Cumbersome ports process and procedures
• Low level of automation
• Absence of Single window platform
• Wrong declaration by shippers:
• Low number of registered shippers with the Council
Paucity of funds to sensitize and train shippers
Implementation by the CBN of a favorable exchange rate policy that will promote export oriented economic growth”.
He also called for sustained sensitization to increase the level of awareness of Nigerian Shippers on the agreement to enable them trade beneficially under the agreement.
The Chairman, Lagos NUJ, Mr Leye Ajayi, had in his opening speech noted that the scope of AfCTA was large as the agreement would reduce tariffs among member countries and cover policy areas such as trade facilitation and services.
According to him, full implementation of the agreement would reshape markets and economies across the region and boost output in the services, manufacturing and natural resources sector.
Ajayi said, “AfCTA has the potential to increase employment opportunities and incomes, helping to expand opportunities for all Africans.
“Creating a single, continent wide market for goods and services, business and investment would reshape African economies. The implementation of AfCTA would be a huge step forward for Africa, demonstrating to the world that Africa is emerging as a leader on the global trade agenda”
The Chairman of the occasion, Dr. Eugene Nweke while referring to the challenges pointed out by Omotosho said it was left for the government to address the issues for the interest of the country.
Nweke said the benefits of the AfCTA were huge for the multiplier effect on the Nigerian economy.
By Francis Ugwoke
Insecurity which is threatening Nigeria’s peace, poor infrastructure, corruption and high duties on imported goods among other charges in the nation’s ports have been identified as major challenges in the implementation of the African Continental Free Trade Area Agreement,(AfCTA).
Noting the many benefits of AfCFTA, including giving Nigeria the opportunity to gain access to over one billion consumers and tap into a three trillion-dollar African market with multiplier effect on the national economy, the Registrar of NAGAFF Academy, Mr. Francis Omotosho, said the challenges need to be addressed urgently.
Omotesho who spoke at a workshop organized by the Lagos chapter of the Nigerian Union of Journalists (NUJ) on Tuesday said the security issue in the country was playing a major negative impact as far as AfCFTA was concerned, adding that what was needed was for the government to rise up to its responsibility over the security concerns.
He also identified poor infrastructure in the country, lack of rail connectivity to the ports with poor road network, adding that Nigerian ports were lacking in standard which has been affecting ship traffic into Nigerian ports.
Omotosho equally pointed out the focus of the Nigeria Customs Service on revenue generation with targets being given to it which has resulted in high duties payable on imports.
He said these issues, including corruption in the ports, have forced some shipowners to prefer neighbouring ports to the disadvantage of Nigeria.
He called for the implementation of national single window and the need to sustain Nigeria’s Ease of Doing Business Action Plans and other public reform programmes to reduce bribery, number of check points among others in the ports and border stations.
Omotosho said, “In general terms. some of the potential impacts of the AfCFTA on the Nigerian economy can be summarized as follows:
Access to Greater Continental Market Share: The agreement gives Nigeria the opportunity to gain access to over one billion consumers and tap into a three trillion-dollar African market.
A stronger Industrial Agenda: The treaty will drive the much-needed increase in manufacturing activities. This will, in turn, improve Nigeria’s export earnings and make the manufacturing sector more competitive.
Drastic Reduction of Trade Tariffs: With a substantial % of trade tariffs eliminated from trade among member states, import and export activities will attract record-reduction of the cost of import/export trade and help to drive down the retail cost of commodity goods
Employment Creation: According to the World Economic Forum, the agreement is expected to serve the best interest of Small and Medium-Sized (SME) companies, which accounts for more than 80% employment and 50% of its GDP. With this fresh opportunity to be more competitive, there will be more employment opportunities for all, not just with SMEs but larger corporations.
Increase Foreign Direct Investment: With restrictions lifted on foreign investments, investors will flock to the continent. This adds capital to expand local industries and boost domestic businesses. New capital enhances an upward productivity cycle that stimulates the entire economy”.
“However, our efforts at encouraging shippers’ to participate in AfCFTA trade is replete with the following hurdles:
• Poor knowledge of shippers on content of the AfCFTA agreement
• Challenges of high logistics cost in Nigeria
• Poor infrastructure
• Low connectivity of the Nigerian ports
• Export Cost/Low value of export
• Cumbersome ports process and procedures
• Low level of automation
• Absence of Single window platform
• Wrong declaration by shippers:
• Low number of registered shippers with the Council
Paucity of funds to sensitize and train shippers
Implementation by the CBN of a favorable exchange rate policy that will promote export oriented economic growth”.
He also called for sustained sensitization to increase the level of awareness of Nigerian Shippers on the agreement to enable them trade beneficially under the agreement.
The Chairman, Lagos NUJ, Mr Leye Ajayi, had in his opening speech noted that the scope of AfCTA was large as the agreement would reduce tariffs among member countries and cover policy areas such as trade facilitation and services.
According to him, full implementation of the agreement would reshape markets and economies across the region and boost output in the services, manufacturing and natural resources sector.
Ajayi said, “AfCTA has the potential to increase employment opportunities and incomes, helping to expand opportunities for all Africans.
“Creating a single, continent wide market for goods and services, business and investment would reshape African economies. The implementation of AfCTA would be a huge step forward for Africa, demonstrating to the world that Africa is emerging as a leader on the global trade agenda”
The Chairman of the occasion, Dr. Eugene Nweke while referring to the challenges pointed out by Omotosho said it was left for the government to address the issues for the interest of the country.
Nweke said the benefits of the AfCTA were huge for the multiplier effect on the Nigerian economy.
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