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Tag: ACFTA

  • Obasanjo pushing $27b free trade agreement

    Former President Olusegun Obasanjo has advised African leaders to sign  the African  Continental Free Trade Agreement (ACFTA), which promises $27billion investments.

    Obasanjo, who spoke yesterday in Cairo, Egypt at the opening of the Intra-African Conference prior to the unveiling of the first Intra-African Trade Fair (IATF), said the fair was necessary to actualise ACFTA,  which, he stressed,  is vital for the continent’s transformation. “It is, therefore, imperative that all African governments, who believe in Africa’s progress, should not only sign the  ACFTA, but should ratify it at once, making a way for its implementation,” Obasanjo said.

    The first of its kind in Africa, IATF is expected to churn out deals worth over $27 billion. Obasanjo said the event had been designed to drive inter-African trade and support the implementation of ACFTA. He tagged ACFTA    a landmark agreement in the context of its value in economic integration, transformation  and progress in Africa’s development.

    The trade fair, in his words, “will give each participant a platform for sharing in the context of African trade, investment and economic integration, leading to the  transformation and  development  of the continent.

    “It will give opportunities to investors to showcase their goods and services  and share with others the trend and market openings.”

    Obasanjo praised the Africa-Export Import Bank (Afreximbank) and its Chairman, Prof. Benedict Oramah, for its contributions towards bringing the IATF dream to fruition.

    He said: “When we started planning for the project, we did not have any financial resources.  Afreximbank provided significant financial resources, but Professor Oramah and  other senior management members of the bank committed so much of their time and resources with enthusiasm ad conviction that the trade fair would pay-off and would contribute ultimately towards the actualization of the ACFTA, which will play a vital role in driving business and generating employment  across the continent.

    “Afreximbank and the AU have worked tirelessly since the announcement of the trade fair in Kigali in March this year,” he stated.

    Obasanjo said that without uninhibited trading among African countries, intra-African trade fair will amount to a sham.

    “Africa needs to focus on what trade is needed, where the markets are, the size of the markets, and the standards required by those markets; how and where to implement the value chains that serve the market.

    “We also need to fashion out the medium of payment within Africa for intra-African trade expeditions. These factors need to be combined in ensuring that there is commercially viable return and that the markets chosen are sustainable.”

    He said when Africa actualises its potential, it would earn more respect from the human race.

    Oramah said Africa was making history at the IATF by reversing the colonial strategy of divide-and-rule, adding that  the event signalled Africa’s readiness for economic independence. As he put it, “Africa should use the force of history to change the course of history,” he said.

    Some 1,150 exhibitors from 80 countries are to participate in the fair, with close to 40 from outside the continent.

    A large number of exhibitors, many of them from Nigeria, are at the fair. The Managing Director of the Bank of Industry (BoI), Olukayode Pitan, United Bank for Africa (UBA) Chairman Tony Elumelu, BoI Executive Director, Small and Medium Enterprises (SMEs) Waheed Olagunju are at the fair. Dangote Group, Fidelity Bank, several firms from Europe, Turkey, China, Indonesia, among others, are there. The Prime Minister of the Arab Democratic Republic of Egypt, Mustafa Madbouly represented the Egyptian President at the opening ceremony.

     

  • Only beneficial treaties ‘ll be signed, Says Buhari

    President Muhammadu Buhari on Monday said that Nigeria will no longer sign any treaty without assessing the impact it will have on the lives of Nigerians.

    He spoke at the Presidential Villa, while inaugurating the nation’s Committee for Impact and Readiness Assessment of the African Continental Free Trade Area (ACFTA).

    The President said that Nigeria will henceforth take its time and breakaway from the past practice where treaties were signed without considering the needed positive gains for the country.

    He said “We are determined to breakaway form the past practice of committing Nigeria to treaties without a definite implementation plan to actualise the expected benefit while mitigating the risks.

    “We cannot go back to the days of signing agreements without understanding and planning for the consequences of such actions and our country being the worst for it.

    “Few months ago I directed a nationwide stakeholders’ engagement on the Africa Free Trade Continental Area Agreement to understand the true impact of this agreement on Nigeria and Nigerians, considering the existing domestic and regional policies as it relates to trade.

    “From the consultation, the key issues raised by stakeholders were abuse of rules of origin, smuggling arising from difficulties in border controls, unqualified impact of legacy preferential trade agreements, low capacity and capability of local businesses to conduct international trade, costly finance, insufficient energy and transport logistics infrastructure but our Economic recovery and Growth Plan is addressing these issues,” he said.

    The President charged the committee to concentrate on the issues raised during the nationwide consultations in order to find lasting solutions to them.

    He said: “Your task as members of the Impact and Readiness Assessment of the African Continental Free Trade Area Committee is to address the issues raised during the stakeholders’ consultations on the Africa Continental free trade Agreement. You are expected to develope short, medium and long term measures that will address any challenges arising there from.”

    He noted that Nigeria’s vision for intra-African trade is for a free movement of made in Africa goods.

    Read Also: Tunde Idiagbon was a rare example of loyalty – Buhari

    Stressing that Nigeria is the largest economy in Africa, he regretted that for too long, the country’s domestic productive capabilities were neglected in favour of imports.

    He said that the Economic Recovery and Growth Plan introduced by the current administration will help revive key job creating and import substitution sectors like agriculture, mining and manufacturing.

    The Minister of Industry, Trade and Investment, Okechukwu Enelamah gave the terms of reference of the committee.

    He said: “Following consultations, the terms of reference of the Presidential Committee on the Africa Continental free Trade Area Impact Assessment and Readiness are; Assess the potential cost and impact of the Africa Continental free Trade Area AFCTA for Nigeria in relation to the benefits, identify the short, medium and long term measure to prepare Nigerian businesses for the take off of AFCTA trading group and a backup plan that covers selected scenarios and view the trade remedy options to safeguard the Nigerian economy form predatory and failed trade practices.”

    He said an updated trade policy is being prepared for Nigeria and the draft would be ready for review by the end of the year.

    The Presidential Committee has the Minister of Industry as its Chairman, with the Chief of Staff to the President as Co-Chairman.

    Ministers of Budget and National Planning, Foreign Affairs, Finance, Justice, and the Economic Adviser to the President.

    Other members included representative of Nigerian Governors’ Forum, President Nigerian Association of Chambers of Commerce and Industry and President, Nigeria Labour Congress among others, as members.

  • MAN, others renew call on Buhari not to sign ACFTA

    The Manufacturers Association of Nigeria (MAN) and other experts have renewed their call on President Muhammadu Buhari not to rush into siging the African Continental Free  Trade  Area (ACFTA) deal.

    MAN lamented that four months  after it raised salient issues on the deal, it is still waiting for answers.

    Speaking at a press conference at MAN House Ikeja yesterday, the President of MAN, Dr Frank Udemba Jacobs  said the only way to guarantee positive proposition is to ensure that  the negotiating team is guided by a credible and strategic country specific study. He added that there was no wisdom in rushing to sign only to end up struggling to find space in the accompanying protocols and annexures.

    He said there is need to be certain that the agreement is in sync and not constraining extant economic policies, including the Economic Recovery and Growth Plan (ERGP) of the government.

    Also speaking at a forum titled: Business Environment & Excise Duty: Maximizing Economic Opportunities through effective Anti-Illicit Trade Enforcement organised by the Initiative for Public Policy Analysis (IPPA), a consultant  to the United Nations Industrial Development Organisation (UNIDO), Dr. John Isemede; and Dr. Olajide Damilola, a Senior Research Fellow at IPPA and University of Aberdeen United Kingdom (UK),   warned that the country is already already awash with imported goods.

    Jacobs said it is worrisome to observe that the study carried out by the Nigerian Office for Trade Negotiations (NOTN) failed to address the concerns of manufacturers.

    “Although NOTN recently conducted and launched a study, the stakeholders are still considering the study in view of the observed glaring lapses.

    “It is worrisome to observe that the study failed to address the concerns of manufacturers.

    “Moreso is the fact that the outcome of the NOTN sponsored independent study on the potential benefits of ACFTA on Nigeria fell short of standards and lack the much-needed information required to take an informed decision. MAN has since commissioned a study and we expect to have the report about a month from now.

    “In the light of recent developments, we considered it necessary to intimate you that an insignificant number of non-real sector operators in the private sector are tactfully recommending that Mr President should sign the agreement under the camouflage that majority of Nigerians and the OPS agrees with their position.

    “They are essentially not at home with the technicalities of a trade agreement of this magnitude. The pronouncement of this group of actors is not representative of the views of the OPS of Nigeria,” Jacobs said.

    Dr. Isemede said the country is already overloaded with imports, warning that the Federal Government should not sign the deal in a haste.

    “I am not saying Buhari should not sign at all but we must put the necessary infrastructure on ground; something to sell; something to offer before rushing into the agreement.

    “For instance, the tea you sip comes from Kenya, the Titus fish you eat every day comes from Morocco, there is Shoprite here and they’re owned by South Africans, and the apple and majority of the products sold is imported from South Africa and with the South African Airline. What is Nigeria bringing to the table and what are you going to sell?”

  • Stakeholders, Fed Govt fail to agree on signing of ACFTA

    SOME business stakeholders yesterday insisted that it was still too early for Nigeria to sign the Africa Continental Free Trade Agreement (ACFTA).

    They bared their minds during the Eighth Presidential Quarterly Business Forum at the old Banquet Hall of the State House, Abuja.

    President Muhammadu Buhari had last week disclosed that he would soon sign the agreement on behalf of Nigeria.

    Accepting that the agreement will be good for Nigeria in the long-run, the stakeholders maintained that many things still need to be put in place in the country before Nigeria can sign the agreement.

    Among the infrastructures they want in place, include good interstate roads, power, access to ports, and efficient rail transportation.

    If care is not taken, they warned that Nigeria would eventually become a dumping ground.

    Speaking at the interactive session, the Chairman of NEPAD Business Group and former President of the Lagos Chamber of Commerce and Industry, Chief Mrs. Nike Akande, said Nigeria was not ready for the agreement and urged Nigeria’s goods and services to be competitive enough.

    She noted that the government cannot do it alone, otherwise the country would become a dumping ground.

    Good infrastructure, she said, was key to promoting trade and investment in the country.

    Also speaking at the interactive session, the Vice President of the North-West Zone of the Manufacturers Association of Nigeria (MAN), Ibrahim Usman, an engineer, said: “We are not against signing the agreement, but if we don’t get this right, we will be in trouble.

    “We agree that the agreement is for services and not goods. If things are still work in progress, why the hurry?”

    Director-General and Chief Negotiator of the National Office of Trade Negotiations (NOTN) Chiedu Osakwe notissues in the Nigerian economy that must be addressed first.

    On what was learnt from the three months of nationwide consultations and the plan for going forward, he said: “This is how we stand, 45 out of the 55 members of the African Union have signed it, six have ratified. In ECOWAS, out of the 15 members, 13 have signed, only two have not – Nigeria and Guinea Bissau…

    “There is a strong support for it, but at the same time, there is consensus by the private sector that there are issues to address on Nigeria’s business environment to address.”

    Vice President, Yemi Osinbajo noted that this is the time for Nigeria to act on the agreement.

    According to him, Nigeria cannot afford to take the backseat on the issue.

    Stressing that some of the fears expressed are not out of place, he said: “While the engine is running, we are not going to wait. I think this is the time to go ahead and do something about it.”

    The Vice President said the current administration has invested massively on infrastructures in the country.

    He said: “With respect to the ACFTA, there are clearly huge advantages for us; no question about it at all. The rest of Africa see the enormous advantage of Nigeria’s participation. Everybody is waiting for us naturally and that is because they see a huge market. But we must ensure to get the best possible terms for Nigerian trade and commerce.

    “Our experiences with dooming and other injurious practices make it obvious to us that our market could be a real target, our local manufacturing could become unprofitable and our agricultural advantage could be reversed.

    “Consequently, we have embarked on extensive consultations with trade groups, manufacturers and organised labour  in all the six geo-political zones in other to get a clear sense of concerns as we navigate the process of  signing the treaty.

    “I think the general resolve favours engagement but the concerns remains around improving the domestic environment for greater competitiveness, concerns of power supply and investment in infrastructure. I don’t think I will make a more eloquent case than the honorable Minister of Power, Works and Housing has just made.”

    Minister of Trade and Investment Okechukwu Enelamah said the agreement is a ticket to play.

    He added that there would be more engagements on the agreement with the Manufacturers Association of Nigeria (MAN) and other stakeholders.

    Minister of Power, Works and Housing Babatunde Fashola, who noted that the government started at the point of recession, said the government is focused and has momentum.

    The government, he said, is supporting business in Nigeria to do what it does best.

    Whether the agreement is signed or not, he noted that Nigeria is already doing international trade with so much goods and services already leaving the shores of Nigeria on a daily basis.

    According to him, the present administration is making headway in critical infrastructural developments in the country.

    Stressing that power in the country has been improved, he said the conversation has changed from lack of power to how to distribute the excess generation.

    Only 14 private sectors in Nigeria, he said, have indicated interest to take advantage of getting their power directly from the Gencos.

    On road projects, Fashola said: “There is no state in Nigeria where the government is not building at least one major road or the other.”

    The roads, he said, are leading to international borders around the country.

    He said: “I hear that we are not ready. I am not a businessman, I don’t know how to do business.  But if the decision on whether to sign or not were mine, I will look at the countries that have signed.”

  • Stakeholders again oppose signing ACFTA

    Business stakeholders on Monday insisted that it was still too early for Nigeria to sign the Africa Continental Free Trade Agreement (ACFTA).

    They bared their minds at the 8th Presidential Quarterly Business Forum held at the old Banquet Hall of the State House, Abuja.

    President Muhammadu Buhari had last week said he would soon sign the agreement on behalf of Nigeria.

    While accepting that the agreement would be good for Nigeria in the long run, the stakeholders maintained that many things still need to be put in place before Nigeria can sign the agreement.

    Among the infrastructures they want in place are good interstate roads, power, access to ports and efficient rail transportation in the country.

    If care is not taken, they warned that Nigeria would eventually become a dumping ground.

    Speaking at the interactive session, the Chairman of NEPAD Business Group and former President of the Lagos Chamber of Commerce and Industry, Chief Nike Akande, said Nigeria is not ready for the agreement until goods and services are competitive enough.

     

  • Nigeria to sign ACFTA agreement in Rwanda

    The Federal Executive Council (FEC) on Wednesday approved the framework agreement for establishing the African Continental Free Trade Agreement (ACFTA).

    The ACFTA is meant to promote commerce among African countries.

    But the Nigeria Labour Congress (NLC) had opposed the signing of such agreement by the Federal Government.

    The NLC has accused the federal government of not consulting widely on the issue, saying it is detrimental to Nigeria’s economic interests.

    President of NLC, Ayuba Wabba, had said “we at the Nigeria Labour Congress are shocked by the sheer impunity or blatant lack of consultation in the process that has led to this. We are more worried by the probable outcome of this policy initiative if it is given life because of its crippling effect on the local businesses and attendant effects on jobs.

    “We have no doubt this policy initiative will spell the death knell of the Nigerian economy. Accordingly, we urge Mr. President not to sign this agreement either in Kigali or anywhere. We believe our national interest is at stake and nothing should be done to compromise this.”

    President Muhammadu Buhari is scheduled to append his signature to the deal on behalf of Nigeria next week during Extraordinary meeting of African Union leaders’ summit in Kigali, Rwanda.

    But FEC said the benefits of ACFTA for Nigeria outweigh the concerns raised by critics.

    The Minister of Trade and Investments, Okechukwu Enelamah, who briefed State House Correspondents at the end of the close to five hours meeting, said that Nigeria is even bidding to host the Headquarters/Secretariat of the ACFTA.

    Enelamah said his Foreign Affairs counterpart, Geoffrey Onyeama, had been mandated to widen consultations with stakeholders, including National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).