THE Federal Government has stated that it is working on a new policy on trade with Ukraine and Russia for mutual trade relations.
Minister of Industry, Trade and Investment Otunba Niyi Adebayo stated this yesterday while featuring on the weekly ministerial briefing, organised by the Presidential Communication Team, at the Presidential Villa, Abuja.
Adebayo, who provided answers to various issues pertaining to his ministry, also spoke extensively on the country’s Presidential Sugar Backward Integration Programme (BIP), which he said, among other things, has created employment for some 15,000 Nigerians.
Responding to a question on how the ongoing Russian/Ukrainian conflict is affecting Nigeria’s trade relations with both countries, the minister said the trade department of his ministry has been mandated to analyse the crisis in the region as it concerns trade with Nigeria, with a view to coming up with a report, which he said, would be presented to President Muhammadu Buhari for his approval.
“My ministry is looking at all the issues involved since the war has come up. The trade department is looking at what we import and export to them with a view to come up with a policy paper, which we will present to Mr. President,” he said.
However, a recent report, which used data provided by the National Bureau of Statistics (NBS), had warned of the impact of the war on Nigeria as it showed that since 2019, Nigeria has received a total of $84.3 million in capital imports from Russia.
It also imported N144 billion ($346.2 million) worth of durum wheat in 2020 and N123.9 billion ($297.8 million) worth of durum wheat between January – September 2021 from Russia.
The country also imports different types of seafood such as mackerel, herrings and blue whiting from Russia.
According to the NBS data, Nigeria similarly imported milk worth N721.5m ($1.7m) from Ukraine in 2021.
Asked if he thought the sanctions being imposed against Russia by other European countries, the United States of America (USA) and others could impact Nigeria’s economy, in terms of trade, the minister said the report of the study mandated the Trade Department of his ministry would make it clearer.
“I mentioned earlier that we have mandated our trade department to do an analysis, to look at all the issues involved and to come up with a report. And once that report is ready, like I stated, it will be presented to Mr. President. After the presentation, I shall come here and brief you about it,” he repeated.
The minister, who discussed the Presidential Sugar Backward Integration Programme (BIP), noted that although local demand for Sugar was 1.75 million metric tonnes as of 2021 and only 5% of the sugar consumed in the country are produced locally.
According to him, the prime goal of the Nigerian Sugar Master Plan, therefore, is to attain self-sufficiency in sugar production and begin exporting to other nations by 2032.
Asked how his ministry plans to bridge the wide production gap, Adebayo said: “We’re looking at Nigeria being self-sufficient in sugar production in 10 years. We’re hoping and we believe with the programmes that we have in place that within the next 10 years, we will be 100 per cent self-sufficient in sugar, and not only that, we’ll be able to export sugar produced in Nigeria.”
On how the government would achieve the 10-year self-sufficiency plan and other goals of the Sugar Master Plan, the minister revealed that it would be joint work with the organised private sector.
According to him, the BIP had generated employment for no fewer than 15,000 Nigerians, adding that the return on the investment into the sugar production field is a long-term thing, the reason for government’s preference for investor who are not in a hurry to make gains.
“Return on investment in this sort of industry, like I said in my presentation, it takes many years and that is why we look for people who have patient capital, who are not in a rush to make a profit, who see that in the long term, they will reap their profits and that’s why we are dealing with the people that we’re dealing with at the present moment.
“Certainly, with regard to employment at the moment, the BIP has created employment for 15,000 people”, he said.
On concerns raised about the clearing challenges importers grapple with at the seaports and how such challenges are stifling ease of doing business in Nigeria, he said plans are underway to keep the ports open 24 hours, seven days a week.
“Yes, there are major challenges that are being encountered in the industry. And I said, one of the challenges is with the clearing of goods. I am part of the ease of doing business. My ministry is charged with the implementation of ease of doing business. I am vice-chairman of the Presidential Ease of Doing Business Environment Council, which is under the chairmanship of His Excellency, the Vice President.
“Only two days ago, we held another meeting under the chairmanship of the Vice President and this issue came up again, it keeps occurring. And a lot of effort is going into trying to see what efforts can be made and what can be done to ease that particular environment.
“The government is spending a lot of money on infrastructure, the road to the port. Contracts have been awarded for scanning machines for the Customs to enable them clear goods more efficiently and quicker. Plans are underway for the port to operate 24 hours a day, seven days a week so that there will be quicker movement of goods. Before the end of the year, it is believed that the new port at Lekki will be operational,” he said.