Nigeria is the giant of Africa but an expert in international finance says this has not reflected in dominating trade in Africa. Barisua Nwinee, dean, faculty of management sciences of the University of Port Harcourt (Uniport), says Nigeria’s hope of dominating trade in at least West Africa requires her to step up in adding value to commodities.
Nwinee spoke at the first-ever seminar by the Chartered Institute of Financial and Investment Analysts of Nigeria (CIFIAN) at the Port Harcourt Polytechnic on Rumuola Road last weekend.
The professor and expert on international finance also wondered why looters of Nigeria’s treasury also joined in shunning investments in production and industry. He said what was being recovered were mostly hotels and exotic houses at home and abroad. He regretted that most looters were repatriating the looted funds abroad, thereby robbing Nigeria a second time. “Even looters shun industries but pump it into houses, hotels. No industry has so far been confiscated, an indication that looters do not boost productivity. Others repatriate capital abroad.”
Nwinee said population explosion would take ECOWAS region to about 800 million in the near future. “ECOWAS region would is 350 million and would be 500 in three years time; and 45 per cent of this population lives in urban areas. So, 450 million will be food consumers. This requires boost in production.”
He traced trends in business integration and said trend of trade partnerships is with EU, US, not much within Africa. “Global integration is always sure. There is 48 per cent integration with outside Africa (EU, US); 35 per cent in Africa, but ECOWAS is 19.22 per cent.” This shows that African countries are quicker in seeking foreign trade partnerships but not with each other.
He quoted several surveys to show that Nigeria ranks second in backwardness in integration. He however made it clear that Nigeria’s location gives it advantage as a trading hub in West Africa due to land, sea and air transport opportunities.
He stated: “Most of Nigeria’s exports are commodities without adding value. That is why she can hardly trade in West Africa or even in Africa. Most of the continent sells the same things, being raw commodities. So, value adding is the key to greater trade advantage, and an area of huge investment opportunity.”
He also noted that there is less intensity in transportation across Africa and low interconnectivity in the continent. Thus, Africa should focus on road transport network to boost trade integration. Free movement is only seen in movement of herdsmen, no real trade movement.
Nwinee said that international finance has been a dry area of activity and study because of the subsistence level of the nation’s economy. “Our products are not out there in the international market. We must be export-driven. We sell only crude oil.”
Saying integration means removing barriers, the dean said there are tariffs that impede trade between nations in same region. “There is also absence of data on trade measurement in Africa; informal and unreasonable differential tariff structures in Africa. Aim of trade should be enhancement of welfare. There must be willingness to surrender some of their sovereignty determines the extent of penetration which delivers economic integration. It enhances production and locating industries in areas of comparative advantage.”
On greater integration, he however said there are fears now over integration policy due to crisis in EU over Brexit experiences. He however said integration enhances production and locating industries in areas of comparative advantage.
Welcoming the participants from parts of the country, the state chairman of CIFIAN, Godfrey Omojefe, noted the significance of the Port Harcourt seminar, saying; “This is the first time the institute is bringing this kind of training to Port Harcourt. It means more success is ahead. This seminar has something for international finance, people, especially students should please pay attention.”
Ignatius Chukwu
