The Nation Newspaper

Tag: Trade

  • Lower Trade and Higher Poverty Rate Are Cousins

    The relationship between trade and poverty is inverted. Countries with higher proportions of global trade tend to have less of poverty. Conversely, countries which contribute the least to global trade have higher poverty rates. This shows the importance of good trade policies in reducing poverty rates and increasing prosperity. Also, this shows why there is intense competition for export markets even by countries that already control significant share of global trade. Little wonder trade facilitation has become an economic policy of great importance.

    Development experts can’t agree more. Jim Yong Kim, the World Bank president, said in a recent statement that, “Trade is a critical component to ending poverty and boosting shared prosperity.” The foregoing therefore suggests that developing countries have to trade their way out of poverty. For African countries to reduce poverty, they must increase their share of global trade. But how to bring this about is anything but easy.

     

    Trade Challenge

    Sub Saharan Africa is reputed to be the least developed region of the world. The SSA region is also the least integrated into the global economy through trade. Since the 1960s, the share of sub Saharan Africa in international trade has become progressively smaller: less than 5% for all merchandise and 3% for agricultural products in 2010 (World Foundation for Agriculture and Rurality 2012). Trade within the SSA region is also dismal. Tariff and non-tariff barriers have been obstacles to intra-regional trade. Although the higher hurdles are non-tariff barriers, the ECOWAS goal of free movement of person and goods across member countries remains more of a wish than reality.

    Exports from Africa are mainly mineral resources and agricultural produce. With very low industrial base, the commodities are exported to other regions of the world and returned later to the continent as costlier finished products. This trade pattern results in “jobless growth” in the exporting countries when the prices of the commodities are high in the international market. The jobs that are created and sustained during commodity boom are mainly in the countries that “refine” and turn the commodities to finished products through industrial activities.

    But when prices of commodities are depressed, fiscal shocks are transmitted through the trade channel to the exporting countries, with severe human and economic implications. Apart from being pro-cyclical, trade in commodities is generally noted for volatility of current account positions and exertion of pressure on the exchange rate. The persistence of weak or negative growth in Europe and slower growth in China has dented economic growth in countries that depend very much on the export markets including Germany. But this does not build a case against active play in the export markets; it probably asserts the importance of domestic consumption as a cushion during a period of weaker exports.

     

    Export Diversification

    Having established the role of trade in reducing poverty on the one hand, and the deleterious effects of export of mainly primary products on the other, it therefore means that the way to reduce poverty in developing countries is through export diversification by boosting industrial activities. Gaining a mileage in export diversification does entail formalisation of informal trade. To achieve this, empowerment of small- and medium-scale enterprises (SMEs) is of utmost importance, both in itself and in gaining more share of global trade.

    The key problem with informal trade is that it deprives policymakers of the major tool of policymaking, which is data. Informal trade usually takes place off the radar, making data gathering and processing virtually impossible. But policymakers need to know areas where it is important to scale up positive results in trade activities. Understanding the obstacles that confront informal sector operators will aid intervention and will eventually prepare the operators toward making due contribution to fiscal policy by coming under the tax net.

     

    SME Incubation

    Evidently, the Administration of President Goodluck Jonathan has identified the SME sector as critical for boosting economic growth and job creation. On its part, the Nigerian Export – Import Bank (NEXIM Bank) is aware of the potentials of Nigerian SMEs. They can leverage domestic consumption, using access to over 170 million population to harness opportunities in foreign markets. Accordingly, our interventions are now geared towards such firms that we believe are relatively well-structured to be able to stabilize their operations and then foray into external markets.

    Several programmes under this Administration are incubating the SME segment for a major turnaround. In the traditional areas of providing infrastructure and electricity power, the country is seen to have made big leaps in policy formulation and execution, notwithstanding the milestones that are yet to be reached. Most recent perhaps is the launch of the N220 billion SME fund by the President in August, under the auspices of Central Bank of Nigeria.

    Specific programmes under the Agricultural Transformation Agenda, infrastructural development for ICT utilization, local content development in oil and gas, the programme of industrialization as encapsulated in the National Enterprise Development Programme (NEDEP) and the Nigerian Industrial Revolution Programme (NIRP) all speak of the resolve of President Jonathan to use the instrumentality of state policy to mediate market performance and SME growth. On-going implementation of the programmes is concomitant with job creation, which is vital for eradication of extreme poverty.

     

    Unmasking Poverty

    Poverty eradication has once again climbed to the top of global development policy agenda. The World Bank and the International Monetary Fund (IMF) have announced twin programmes of ending extreme poverty and boosting shared prosperity by 2030. Feelers from post-2015 policy debates suggest that global development goals will focus on eradication of extreme poverty, going forward from next year. In the meantime, reports from some global institutions are making some important prescriptions on poverty reduction.

    A recent publication by United Nations Conference on Trade and Development (UNCTAD) – Trade Policies, Household Welfare and Poverty Alleviation: Case Studies from the Virtual Institute Academic Network – strongly associates trade and poverty, offering policymakers insights on what it called “pro-poor trade policies.” Another new literature which focuses on economic growth – a sine qua non for poverty reduction – reaffirms what we already know: that export diversification is the “gateway” to higher growth. To achieve export diversification however, Chris Papageorgiou, Lisa Kolovich and Sean Nolan, all of the IMF, identify manufacturing of high quality products as a necessity. They suggest therefore that the world has gone past the Chinese industrialization model of producing cheap and low quality products to unleash price competition in the export market. Accordingly, Chris and his colleagues listed human capital, infrastructure, institutional quality, financial deepening and proximity to markets as drivers of export diversification. These are very important recommendations which are familiar but which cannot be overemphasized. I will therefore run commentaries on them in the context of the Nigerian policy environment and readiness for trade as I conclude this piece.

    Quality products: The Nigerian middle class and wealthy Nigerians are noted to be pretty sophisticated. As such, an industrial development model that manufactures cheap and inferior products would be mistargeted at Nigerians with means. Nowhere is this recognized more than in the cable manufacturing industry where Nigerian cables are noted for higher quality than some imported brands. Once known for exporting inferior products, China has been reforming its industrial policy to emphasize the manufacturing of high quality products. This is the direction Nigeria should go to ensure we can trade in the global market of today and not of yesterday.

    Human capital: Within a practical framework, multi-level support for human capital development has been a key goal of this Administration. School enrolment has improved generally. Specific programmes have targeted areas that had lagged behind due to past neglect. Tertiary education is being strengthened to be able to absorb more university candidates. Another area that has benefited from government’s programme of industrial development is vocational education. For example, there are ongoing efforts to develop skills that will support growth in the power sector and automobile production and assembly plants. Also, the Subsidy Reinvestment and Empowerment Programme (SURE-P) embeds training for skill acquisitions in the areas of public works, including road construction and maintenance, railway rehabilitation and dredging.

    Infrastructure: The foregoing already highlights the fact that the country is moving in the right direction with infrastructure development. The pace may be slow, but there is no doubt that we will attain a tipping point sooner than later. At that point, it will become more obvious to global investors that so-called infrastructure deficiency in Nigeria represents investment opportunities which are being harnessed. This is a key lesson we have taken from the implementation of the power sector reform.

    Institutional quality:  The truth is evident that Nigeria is building and strengthening its institutions again. As a constitutional democracy, the governance framework is stable and predictable. Market regulators do their jobs without the fear of any political backlash. This is what has helped to put in place a sustainable path for the turn-around of our financial market, since the introduction of reforms in 2004. NEXIM Bank itself is an institution that has been revamped as part of government decision to strengthen public sector institutions and support private sector actors.

    Financial deepening: There is perhaps no other country or jurisdiction that has introduced more far-reaching reforms in its financial market than Nigeria over the past ten years. The proliferation of marginal banks has given way to stronger and sounder private sector financial institutions including “mega” banks. A poorly organized and unfunded pension system has given way for the contributory system that has exceeded N4.5 trillion ($24 billion) in pension asset. Yet regulation and innovation have continued to characterize the Nigerian financial system, including the capital market.

    Proximity to markets: Nigeria is not just a place to set up a business. The country is a big and growing market. Investing in Nigeria is tantamount to connecting to a big market. Nevertheless, the country is also well-linked to the sub-regional markets by all popular means – road, sea and air – except by rail.

    As the country continues to develop capacity for trade through economic diversification, it is expected that the poverty rate will continue to fall.

     

    •Roberts Orya is Managing Director / Chief Executive Officer, Nigerian Export – Import Bank.

  • Nigeria to lift trade frontier in U.S. -Africa Relations

    Nigeria to lift trade frontier in U.S. -Africa Relations

    President Barack Obama deserves commendation for instituting a new engagement with Africa. Bringing trade relations to the fore, even if the traditional concerns for security and good governance remain on his agenda, is especially laudable. For some, the recently concluded U.S.-Africa Leaders Summit represents a fitting recovery from what had appeared as general apathy towards Africa. When finally he decided to broadly engage with African leaders, President Obama looked beyond the traditional model that has been criticized as paternalistic. In the past, the focus was on dolling out U.S. aid to Africa, in a relationship in which the hand of the giver was always on top. Even more commendable is that, as the U.S. contemplates deepening commercial relationship with Africa, it looked beyond the traditional sector of trading oil and few other extractive commodities.

    Nevertheless, Africa commands this new attention. In the last ten years, Africa has significantly shed the image of war and deprivation. Economic growth has been steady, averaging estimated 5 per cent annually, according to the International Monetary Fund and the World Bank. Constitutional democracy has taken root in most African countries. Evidence of improved governance is seen across Africa, and economic reform initiatives — like the ones enunciated in the Transformation Agenda of President Goodluck Jonathan of Nigeria — have improved market performance, unlocked private sector resources and, consequently, helped to expand the middle class.

    Africa remains resource-rich. But the new attraction for the continent, especially from China, recognizes so much that Africa has to offer and what it needs for further progress. Africa has become more aspirational than it had ever been or even taken to be, aware it has the capacity to give even as it takes from development partners. As a result, a win-win approach is being realized in engaging the African continent.

    China has gained the head start advantage over the United States and Europe in commercial relations with Africa this new term. Indeed, as the West loses the momentum for trade with Africa, even so has China pushed its appetite for African economic engagement.  It is an open secret; China’s trade with Africa has been on the increase. It rose from $166 billion in 2011 to $210 billion in 2013. In the same period, U.S. trade with Africa dwindled from $125 billion to $85 billion. Africa has opened the door to China’s knock on the door of African opportunities. While this is happening, for debatable reasons, the U.S. beats a retreat. The policy justification for U.S. exit cannot be because of the traditional concerns of insecurity and bad governance. These issues have improved significantly over the past decade. Perhaps, the changing structure of U.S. trade interest, because of increased energy security at home, provides an explanation.  Nevertheless, the $33 billion investment commitment by the Obama administration and U.S. investors in power and other industries during the recent meetings in Washington DC is a commendable reawakening.

    There is no doubt that Africa’s trade with the West, particularly the United States, has important and unique values. Well-recognized is sharing of best practices. Even if African leaders had been reticent towards policy prescriptions, the evidence now is that the continent shares the values of representative government, open and transparent policy and economic freedom for the private sector to drive growth and prosperity. Moreover, the riches of Africa’s diversity accommodate multiple, external players, on the basis that Africans themselves are also investing in the continent and are establishing functional commercial partnerships. Yes, we have abundant natural resources. But even more importantly, we have the population to support production of consumer products. Africa’s demography — about one billion people which comprises a higher youth population — tells that long-term viability of investments cannot be in doubt. In Nigeria, the services sector is now the biggest contributor to our Gross Domestic Product. The opportunities seem boundless.

    Because U.S. businesses have largely overlooked African opportunities, and the U.S. press have yet to shed the old stereotypes in reporting the continent (although the European press have made better progress with objective and balanced reporting of Africa), it will be useful to highlight some of the attributes of the African growth story and the investment opportunities. Nigeria is a fitting example, because of scale, homogeneity of policy around private sector development and commonality of Africa’s aspirations. The Nigerian government protects private investment. One of the ways this is affirmable is respect for contract. Competitive bidding has been the hallmark of licensing and sales of public assets in the country after the last of the military interregna 15 years ago. This ensures deals are transparent and valid. The reform of the legal and regulatory frameworks has been pursued with vigour since 1999, helping to define engagement, making contracts binding and making rules clearer and less whimsical.

    As we affirm at the Nigerian Export-Import Bank, the Nigerian opportunities are not concentrated in oil and gas. At NEXIM Bank, we have identified manufacturing, agro-processing, solid minerals and services as areas of big opportunities; not just for commercial profit, but also for socially impactful businesses through local employment and empowerment. In these sectors, Nigeria seeks to create opportunities for a vibrant youth population with realistic wage structures. Broader investment in these high growth and job-rich sectors will enhance wealth creation, broader base prosperity and increase demands, in a virtuous cycle.

    General Electric is one of the U.S. major businesses that have recognized the business potentials in the infrastructure gap in Nigeria and the bright policies of the Jonathan Administration to harness the potentials. GE is investing in the Nigerian power sector where we intend to increase output five folds over the next decade. The ripples of substantial progress in meeting Nigerian power sector demands will prove that the country is very well able to grow in double digits for a long time, given current 7 per cent GDP growth at a time industrial activities and enterprises are stifled by power shortage from the national grid. But in pursuing progress, public investments in infrastructure have been substantial even as private sector investment in power generation and distribution has towered, in contradistinction to when it was zero up till a few years ago. However, more private sector investment is necessary in infrastructure and power to accelerate progress.

    Partnerships are working in Nigeria. Public-private partnerships have delivered projects and unlocked potentials. Similarly, private sector partnerships are thriving. GE has been operating in Nigeria through business partnerships with local investors, who themselves are successful, savvy and understand the local environment. In Washington DC this past August, GE and Heirs Holding led by Nigerian Mr. Tony Elumelu, further demonstrated the working of private sector partnerships by deepening relationship with the new deals they announced. Similarly, Africa’s richest man, Aliko Dangote entered project partnership with Blackstone-backed Black Rhino, in a $5 billion investment in infrastructure development. With policy support from the administration of President Jonathan, Nigerian small and medium scale businesses are growing. They are viable prospective partners to U.S. SMEs who want to invest abroad to generate new businesses and develop new markets.

    It is in the area of private sector partnerships that Nigeria will provide the lift for the new commercial engagement of the United States with Africa. Using the familiar proclivity of the Nigerian diaspora to succeed, and the achievements of those in the U.S., the average Nigerian at home is self-motivated to succeed. We have embraced the principle for self-actualization in business. Nigerian businesses are successfully raising capitals in the international markets. A number of Nigerian banks and non-financial services providers are multinationals in their own rights, having subsidiaries in several countries in Africa. A few are listed in the London Stock Exchange, the Johannesburg Stock Exchange and in Canada, closer to the United States. These vibrant businesses will help U.S. businesses to quickly gain traction and gain market share as partners.

    Nigeria is not just the biggest economy in Africa; it is the regional hub for West Africa. For businesses looking at Africa, Nigeria provides the base for further outreach to cover West and Central Africa. The two sub-regions account for over 400 million population. Intra-regional trade amongst these two sub-regions is significant when we consider Africa’s trade without factoring in extractive commodities. The traditional trade relation is receiving a boost by the efforts of NEXIM Bank to facilitate a private sector shipping company to provide maritime trade links between West and Central Africa. The Sealink project is coming to financial close, following investment interests by African investors. This initiative will help remove non-tariff barriers to intra-Africa trade. Moreover, the past five years have witnessed NEXIM Bank’s funding interventions in Nigerian SME manufacturers who now export to West Africa and beyond.

    In the short term, a security challenge exists with the insurgency in the North Eastern part of the country. Efforts are being made to contain the threats. Longer-term, the efforts of the Federal Government will come into fruition with its recognition that a society that promotes prosperity through the right combination of investments in its people and infrastructure will remove the desperation and some of the other incentives that drive criminal activities.

    Lastly, Nigeria recognizes the importance of civil society engagement. Civil engagement has been the hallmark of the administration of President Jonathan which promoted the national conference that recently concluded. Under the Administration, elections have become more transparent, conclusive and less acrimonious. Opposition parties freely engage, and have criticized the government without any untoward consequences. It is this civility and democratic ethos that further assures that Nigeria is the place to do business, even as Africa is ready for business.

    –  Orya is Managing Director / Chief Executive Officer, Nigerian Export-Import Bank

  • Ministry holds workshop on WTO trade agreement

    The Federal Ministry of Trade will next week, in partnership with the USAID’s Nigerian Expanded Trade and Transport (NEXTT) programme, host a national workshop on “Implementing the WTO Trade Facilitation Agreement.”

    The support is being given to the Federal Ministry of Industry, Trade and Investment (FMITI) as part of NEXTT’s overall engagement to improve the trade policy process, including policy formulation and coordination in Nigeria.

    The two days’ workshop, which is part of the process to domesticate the Agreement on Trade Facilitation (TFA) agreed on in December 2013 at the 9th Ministerial Conference of the World Trade Organisation, will be attended by public and private trade facilitation stakeholders.

    Upon entry into force, the TFA will create binding obligations for WTO members such as Nigeria to improve customs procedures, transparency and efficiency as well as cooperation amongst border regulatory agencies and private sector.

    The developing and least developed members are expected to self-designate, on individual basis, the provisions of the TFA into Category A (implementation upon entry into force), B (deferred implementation) or C (linked with acquisition of capacity through assistance and support) and the date of their choice for the implementation of respective provisions.

    The workshop, which will hold from the 21st to 23rd October at Chelsea Hotel, Abuja, will, among other things, enhance participant understanding of the Trade Facilitation Agreement and its implication; collect private sector inputs on the key barriers to trade Determine Nigeria target prioritisation of the TFA commitments

    It will also enhance participants’ awareness on the key success factors for the set up and strengthening of a National Trade Facilitation Committee and initiate the process of building project plans to request donor’s financial and technical assistance for Category C provision implementation

    Participants will include trade facilitation stakeholders from the public and private sector; development partners and the academia.

  • Senate blames free trade zones’ failure on weak laws

    Senate blames free trade zones’ failure on weak laws

    The Senate yesterday blamed the inefficiency of free trade zones (FTZs) in the country on weak regulatory framework guiding their operations.

    Chairman, Senate Committee on Trade, Senator Odion Ugbesia, made the observation during a public hearing on a bill seeking to amend the Oil and Gas Export Free Zone Authority Act 2011.

    Ugbesia said  it was obvious that free traden zones in the country were far from achieving the purpose for which they were established.

    He said: “Our free zones are far from achieving the purpose for which they were established and there are serious doubts as to whether Nigeria has indeed benefited from the Onne Oil and Gas Free Zones beyond the benefits accruable to an industrial area.

    “This is because of weak regulatory framework guiding the operation of Free Zones in Nigeria.”

    He said the amendments to the Act were proposed to ensure that the country benefited maximally from the huge investments in the FTZs.

    Ugbesia said the most attractive feature of an FTZ anywhere in the world, is the tax holiday which investors enjoy as incentive and encouragement for investment which the proposed amendment provides for.

  • Edo APC: don’t trade your cards

    Edo APC: don’t trade your cards

    •2,000 PDP members decamp

    The All Progressives Congress (APC) in Owan East Local Government Area of Edo State has urged its members not to trade their temporary voter card for promises of non-existent jobs by the Peoples Democratic Party (PDP).

    It said it was deceptive of the PDP to promise them jobs in exchange for their cards.

    The State Treasurer, Saliu Momoh, who spoke at a mini rally, urged the people to protect their temporary cards.

    He said: “There is nothing the PDP cannot do to manipulate you to get your voter card.

    “Do not be deceived by them. Don’t release your cards for any job promise.

    “Ask the PDP what it did in 10 years before you release your cards. Let it show you evidence of performance in the state and at the federal level.”

    The Council Chairman, Jimoh Ijegbai said the country could not continue with the “inept PDP government at the federal level”.

    Ijegbai urged the people not to sell their cards but to collect the PVCs to effect a change in country.

    Commissioner for Agriculture Abdul Oroh said the “PDP is an Ebola virus” to the country.

    Oroh said an APC-led Federal Government would restore peace and normalcy to the country.

    He said the $9.3million taken to South Africa for ‘arms purchase’ was stolen by the PDP.

    A party chieftain, Pally Iriase, urged the people to vote out corruption by voting out the PDP in 2015.

    He said President Goodluck Jonathan has  failed in power supply and job creation.

    More than 2000 members of the PDP in the locality joined the APC at the rally.

  • Twists and twists on illicit tobacco trade

    Twists and twists on illicit tobacco trade

    The publicity that the media has given to the training of men of the Lagos State Police Command on implementation of the recently-passed Smoke-free Public Places Law by British American Tobacco Nigeria (BATN) has come as a rude shock to public health advocates. It is simply the case of a mosquito giving training on how to treat malaria!

    Not only is the timing of the exercise suspicious, it reveals also the desperate maneuvers of tobacco companies in ensuring that tobacco control laws are interpreted in their own language thereby undermining their effectiveness.  The tobacco companies will talk about health but will reject that health should take precedence over their profit motifs.  Instead, the industry advances economic arguments to rationalize, though erroneously, why effective tobacco control laws should not be promulgated.

    Such arguments, especially against increasing taxes on tobacco products to reduce the number of people taking to the smoking habit were again raised to high pitch at the Public Hearing on the National Tobacco Control Bill (NTCB) which held on July 16, 2014 in Abuja.

    In turns, BATN and other tobacco trans-national merchants poked sections of the bill they felt opened doors to possible increase in taxes, a key recommendation of the World Health Organisation Framework Convention on Tobacco Control (WHO FCTC) which Nigeria has signed and ratified.

    Their fears (real or imagined) centered on the possibility of smugglers exploiting gaps in the demand and supply chain after taxes are raised, to market supposed fake or substandard tobacco products to consumers at cheap rates, besides being readily available.

    While verifiable statistics were not provided to back up these claims, public health groups feel the fears are mere hypes, pinning their argument on the need to prioritise health over profits, not the other way round. They point to Article 6 of the WHO FCTC which states that: “Parties recognise that price and tax measures are an effective and important means of reducing tobacco consumption by various segments of the population, in particular young persons.”

    Some of the groups that were vehement against arguments for whittled down regulation include the Environmental Rights Action, Civil Society Legislative Advocacy Centre (CISLAC), Nigeria Tobacco Control Alliance (NTCA), among others.

    It is pertinent to note however, that for those who understand the “abracadabra” that the tobacco industry is known for the question of raising tobacco products’ taxes is one that goes beyond our shores. It is common knowledge that the tobacco trans-nationals have consistently used the threat of illicit tobacco to argue against any form of regulation but most especially taxes.

    A case study readily cited is a recent research in the UK, where the tobacco trans-nationals were all over the media warning that levels of illicit trade would increase if standardised packaging is implemented.

    Standardised packaging do away with glamorous and alluring pictures etc from tobacco packs to discourage the underage from patronising tobacco products. It was identified as a means of cutting down on the number of youths who would normally be attracted by packs to attempt buying. The study showed that the alarm was actually a strategy concocted by the tobacco firms to thwart the legislation as it showed that media stories citing industry data on growing illicit tobacco actually began in June 2011, just two months after the Tobacco Control Plan for England, which heralded standardised packaging, was published.

    The study further unearthed the murky business of tobacco trans-nationals that were found to be very much involved in the global illicit tobacco trade.  As far back as the 1990s some of the tobacco companies operating in the UK were accused of facilitating smuggling by deliberately oversupplying brands to countries like Bulgaria where there was no demand for them.

    It noted that even after signing an anti-smuggling agreement with the European Union (EU) the transnational tobacco companies like Japan Tobacco International (JTI) continued the practice. JTI is still under investigation by the European Anti-Fraud Agency (OLAF) following evidence of its involvement in illicit even after signing the anti-smuggling agreement.

    In year 2000, British American Tobacco (BAT) was also accused of benefitting from smuggling. In an expose by The Guardian in the UK, journalists who got hold of once secret internal industry documents found that BAT had “for decades secretly encouraged tax evasion and cigarette smuggling in a global effort to secure market share and lure generations of new smokers”.

    But the bogus claims of illicit trade and complicity by the tobacco industry are not limited to the EU. In South Africa where illicit trade in tobacco always makes the news, a group, the National Council Against Smoking (NCAS) recently countered the Tobacco Institute of South Africa (TISA) – a lobby group for the tobacco industry – which had alerted that up to a third of the South African cigarette market goes toward the illegal trade.

    Armed with such evidence about an industry that cries wolf when there is none, it is no wonder that public health groups in Nigeria insist taxes must go up.

    At the height of the first shot at a national legislation on tobacco in 2007, ERA/FoEN and groups like the National Tobacco Control Alliance (NTCA) went a step ahead with doubts about the motives of BAT Nigeria (BATN) for donating Hilux jeeps to the Nigerian Customs Service (NCS) supposedly to combat the illicit trade in tobacco. Their argument was that the vehicles were “Greek Gifts” to pull wool over the faces of Nigerians to divert attention from what they may actually be suspecting.

    Similar alarm bells sounded when the top echelon of BATN visited the Lagos State Governor, Babatunde Fashola in September 2013 when the state was on the verge of passing legislation prohibiting smoking in public places. At that time it was also alleged that the visit was to be complimented with the donation of Hilux jeeps to the Lagos Security Trust Fund.

    Current statistics from the WHO indicate that 5.4 million people die yearly from tobacco smoke. The global body painted a gloomier picture recently when it said that unless urgent action is taken, the annual death toll could rise to more than eight million by 2030.

    Ironically, it posits that early 80 per cent of the world’s one billion smokers live in low- and middle-income countries like Nigeria. Among a wide range of measures that can cut down the mortality rate on tobacco, the WHO says that tobacco taxes are the most cost-effective way to reduce tobacco use, especially among young people and poor people. It adds that a tax increases that push up tobacco prices by 10 per cent decreases tobacco consumption by about 4 per cent in high-income countries and about 5 per cent in low- and middle-income countries.

    The WHO recommendation is one that the House Committee on Health must not overlook if the wellness of Nigerians today and in the future must be secured. In the quest to keep the nation’s revenue base intact, the health of the citizenry must always come first.

    Adamu Musa wrote from Sabon Gari in Kano

  • Nigeria, Ghana to strengthen trade relations

    Nigeria, Ghana to strengthen trade relations

    Although there has been informal trade between Ghana and Nigeria, it has not grown to the level of signing a bilateral trade relations. The Economic Community of West African States (ECOWAS) Trade Protocol has also not boosted trade between both countries except on a very low scale where business  men buy goods between the two countries and sell to retailers in the individual countries. However, a recent sensitisation forum on ‘Doing Business in Ghana’ held in Lagos, sought to strengthen trade relations between both countries.

    President, Lagos Chamber of Commerce (LCCI), Mr. Remi Bello said the forum is a platform to give enlightenment, education and exchange of ideas on how to boost trade and investment between Nigeria and Ghana and indeed, within the West Africa sub region. He said: “For too long, private sector organisations and institutions have confined themselves to the comfort or illusion of their individual countries, while our counterparts in other parts of the world are advancing the frontiers of their economies and markets through integration.”

    He said with a robust market of about 350 million people, significant benefits of economies of scale would be enjoyed by West African firms in the event of full market integration. This, he argued, would reduce unit cost and enhance competitiveness.

    While calling for partnership and cooperation of the various private sector entities in the sub region, Bello made a case for greater advocacy by private sector organisations to promote economic integration and remove all barriers, especially non-tariff barriers to trade and investment.

    Nigerian Ambassador to Ghana, Mr. Ademola Oluseyi Onafowokan, in his submission, said the formation of the Nigeria/Ghana Business Council has become more imperative with the call by United States President, BarackObama for African countries to look inward if they are to advances their economies. He said the challenge has been thrown at the sub-region to increase the sub-regional trade.

    The chairman of the forum and former Minister of Industry, Mrs. Nike Akande expressed optimism that the Business Council would be beneficial to both countries. She also promised that the Council will work with the Ghana Investment Promotion Council as well as its Nigerian counterpart as a one-stop- investment advisory point to assist investors in both countries.

    Ghanaian Minister of Trade and Industry, Mr. Haruna Idrisu, while commending the efforts towards the formation of a Business Council between the two nations, regretted that Nigeria has not lived up to her bidding as the big brother in the region. He stated that his country have signed the common bilateral treaty but regretted that Nigeria has not signed hers.

    Earlier, former Nigerian Foreign Affairs Minister, Mr. Henry Ajumogobia commented the goodwill shown by Ghana in the formation of the Business Council such as the non- restriction of goods and services from Nigeria into their country and asked for equity and reciprocity from Nigeria.

  • Kwara APC, PDP trade words over ‘billboards’

    THE All Progressives Congress (APC) in Kwara State yesterday said thugs allegedly sponsored by the Peoples Democratic Party (PDP) had demolished its billboards in parts of Ilorin, the state capital.

    APC urged the state police command to fish out and bring alleged perpetrators to book.

    The State APC Chairman, Alhaji Ishola Balogun-Fulani, who addressed reporters in Ilorin, said his party had lodged a formal complaint about the development with the Department of State Service (DSS).

    He added that the party would without delay officially write the state police command on the issue.

    He listed the areas where the APC’s bill boards were destroyed to include General Hospital area, the Queens School area, Garin-Alimi Roundabout and Offa Garage and other parts of Ilorin metropolis.

    Balogun-Fulani alleged that after the failed attempt to instigate the impeachment of the state governor, Alhaji Abdulfatah Ahmed, “as the PDP did in Adamawa State, events in Kwara State in the past few days point to a desperate attempt by the PDP and its sponsored political thugs to make Kwara State ungovernable through PDP-instigated political unrest and crises.”

    But the state PDP Spokesperson, Chief Rex Olawoye, dismissed the APC’s allegation, adding: “That is what they have always been saying. They are not yet aware that they are becoming unpopular even among their members.”

  • Trade show holds Sept 2

    THE second packaging, plastics, labelling and printing trade show will hold from September 2 to 4 at the Eko Hotel and Suites, Victoria Island, Lagos.

    Titled: Propak West Africa 2014, the event being organised by Montgomery West Africa, would feature international and local experts and decision makers in the industry.

    Managing Director Montgomery West Africa Tori Abiola said the four-day event is being supported by the Institute of Packaging Nigeria (IOPN), World Packaging Organisation (WPO), Nigeria Export Promotion Councl (NEPC), Small and Medium Enterprises Agency of Nigeria (SMEDAN), Chartered Institute of Professional Printers of Nigeria (CIPPON) and the National Agency for Food, drug Administration and Control (NAFDAC).

    She said the event would also feature seminars and a launch titled: Digital Print Expo West Africa.

  • Merkel wants hurdles removed to EU-Mercosur free trade pact

    Merkel wants hurdles removed to EU-Mercosur free trade pact

    German Chancellor Angela Merkel assured Brazil that she will do her utmost to bring to a successful end the 15-year-old negotiation of a free trade deal between the European Union (EU) and South America’s Mercosur trade bloc.

    Merkel, stopping in the Brazilian capital on her way to see the German soccer team play in the World Cup on Monday, said Germany and Brazil, the two largest economies in Europe and Latin America, had much to gain from more trade and investment.

    “We have a lot of interest in reaching a free trade agreement between Mercosur and the European Union,” she said in a statement to reporters after meeting with Brazilian President Dilma Rousseff. “I will do what is possible so that we can take a step forward and overcome the obstacles.”

    Merkel and Rousseff discussed expanded cooperation in scientific research and the energy sector, including renewable energy, and joint ventures to increase investment flows.

    But freeing up trade flows between the two countries has been held back by the drawn-out negotiations of a free trade accord between Europe and the Mercosur trade bloc formed by Brazil, Argentina,Uruguay, Paraguay and, more recently, Venezuela.

    Off and on talks have been held since 1999 and were taken up again in 2010 after a six-year freeze. Talks have floundered in the past over European agricultural subsidies and the opening of Mercosur industries to competition from Europe.