|
Getting your Trinity Audio player ready...
|
Issues around President Muhammadu Buhari’s last minute decision cancel his scheduled trip to Kigali, the Rwandan capital to sign the Agreement Framework for the establishment of African Continental Free Trade Area, AfCFTA is expected to dominate the Federal Executive Council meeting ( FEC) holding at the Presidential Villa, Abuja, this Wednesday.
BusinessDay gathered from the Presidency on Tuesday that President Buhari who was not at the last FEC meeting where the issue was discussed and approved for his signature, was irked by the poor preparations that trailed the decision as most of the stakeholders were not consulted prior to the decision.
Experts are of the opinion that despite the directives by the Authority of the Heads of State and Government of the African Union to member states, July last to carry out necessary consultations and negotiations with stakeholders in their countries, ahead of the agreement signing, Nigerian government did not engage relevant stakeholders enough.
The Nigerian Labour Congress had frown at poor levels of engagement between the federal government negotiating team and relevant stakeholders including the Manufacturers Association of Nigeria (MAN), the NLC, Textile Workers Union, members of the organized private sector, amongst other relevant stakeholders.
The contentious Issues are built around setting appropriate tariffs to protect locally manufactured goods, updating the nation’s trade policy which was last reviewed in 2002, lack of proper consultation on the fate of the Nigerian worker, and the absence of a well articulated policy position that is all inclusive.
Jonathan Aremu, consultant on Common Investment Market and Trade in Services, Afam Osigwe, former Secretary of the Nigerian Bar Association ( NBA) as well as Isa Aremu, a member of the Nigerian Labour Congress national Executive committee, while speaking at the Nigeria Television Authority ( NTA ) morning program, were in agreement that signing the agreement would have portend danger for the country, since relevant stakeholders were not allowed to make their inputs
The experts believe that the tariff structure if further lowered from the current 35% to between 0-5% as it is being required under the yet to be signed AFCTA, local industries with their weak competitive structure will further collapse.
Minister of Investment, Trade and Industries, Okechukwu Enelama had hinted that government had established committees that will engage Nigerians on the AFCFTA, while assuring also that every step taken was done in the nation’s best interest.
The Minister said the AFCFTA will market access for Nigeria’s exporters of goods and services, spur growth and boost job creation, as well as remove barriers against Nigeria’s products and provide a Dispute Settlement Mechanism for stopping the hostile and discriminatory treatment directed against Nigerian natural and corporate business persons in other African countries.
Government had also said it will expand rules-based trade governance in intra-African trade to invoke trade remedies, such as safeguards, anti-dumping, and countervailing duties against unfair trade practices, including dumping, trans-shipment of concealed origin of products.
It is also expected to stimulate specifically, an estimated 8.18 percent increase in Nigeria’s total exports, with a small structural shift in Nigeria’s economy towards manufacturing and services. This is expected to lead to a total increase in Nigerian economic welfare by 0.62% – equivalent to around US$2.9 billion in 2018 terms. Changes would result from tariff reduction, ease of doing business and, trade facilitation.
This is is also expected to provide an expanded platform for Nigerian manufacturers and service providers for connection to regional and continental value chains.
BusinessDay gathered that federal government is expected to unfold new policy that will stimulate public response to wider consultations on the way forward as against the current top to bottom approach or what they described as mere ” Executive Briefings”
Tony Ailemen, Abuja
