Abdulgafar Ijaya, a Professor of Economics at University of Ilorin has commended President Muhammadu Buhari for allowing Nigeria to partake in African Continental Free
Trade Areas (AfCFTA) Agreement as it would provide the needed economic platform for the country to compete favourably among the comity of countries in Africa.
He however expressed worries that developed countries might capitalise on the opportunity to rebrand their products and bring them into Africa and Nigeria as goods produced in Africa, saying that adequate measures must be put in place to curb frivolous imports of goods in order to prevent the country from being turned to a dumping ground.
Ijaya explained that although the free trade agreement when full implemented would allow goods move easily from one country to another within the continent, but the agreement shouldn’t be disadvantageous to the economy as lots of disadvantages would be abound in the long run if care is not taken to ensure that rebranded goods that were originally manufactured in developed countries were not smuggled into African continent as being produced in Africa.
The Professor of Economics, who spoke to BusinessDay in Ilorin, Kwara state capital at the weekend, noted that Nigeria population and her largest market in Africa would make her economically vibrant and competitive within the continent if all other variables were provided, but should allow to be turned to a dumping ground but should rather use the opportunity to also offer labour to other countries in Africa.
He said, “Then you now begin to look at it that, hope Nigeria will not be a dumping ground as such. The free trade is all about encouraging manufactures to produce more, boost the country’s economy but who buys what from who? That is where problem now lies.”
“The disadvantages may not be clear now until
when implemented. Then we will be able to see what comes out of it. There may be challenges because Nigeria is a very large market even our population.
“Take for instance, the population of Benin is about five million, you are comparing that market with an economy of a market of about 180 million. You now say let’s open borders for goods coming from other African countries, they also open borders for us, so when you look at it, if
Benin comes with all her goods, the tendency to get buyers would be there, but if Nigerian goods should go to Benin, how many of Benin people would buy
Nigerian products?
“Another fear is that, some developed countries can exploit those provisions, as it can happen where a product that was produced in China or Europe is
brought to Niger Republic and could be said it was produced in Niger Republic.
“I think the reason the government actually signed is more political now than even economy. Because this Big Brother of a thing – the largest economy in Africa. How are we sure that developed economies – countries like China, Europe will not take the advantage of that to now
ship in goods to other African countries?
“All they will do is just change from made in China to made be in Niger or made in Sudan, Egypt, South Africa, given it that impression that the product is made in Africa and brought to Nigeria.
“By implication, what the agreement was saying is that any goods that is coming from any of African countries; tariff would not be charged again. Tariff which is the major source of revenue for government will now go down.”
The economic expert, however, expressed hope that with Nigeria population and the largest economy in Africa, we stand to benefit from the agreement, saying: “now, there are no restrictions, if Nigerian manufacturing industries are producing massively well just as China is doing, we can dominate African markets.
“Across West Africa for instance, already some of our products are there, but my only fear is how are we sure that goods coming from Europe, China or other Asian countries will not find their roots through Cameroon to
Nigeria, given it impression that it is made in Cameroon while it is not made in Cameroon?
“Certain measures needed to be put in place to see, that do not happen. For sure, in the long run, if our industries are back to the way they used to be in the 70s – 80s, definitely, Nigeria will dominate the African market.
“From free trade, we can also have the labour movement, where you have free movement of labour, Nigeria will benefit from that, because this will allow Nigerians to move to other countries freely without hindrance, we can
also dominate their labour market.
‘When you talk about Nigeria intellectual activity, we have that. Nigerian manufacturing industries have what it takes to dominate labour market. So, if the agreement is able to move from free trade to free movement of goods and service, it would be good for our manufacturing industries, good for our labour market, and Nigeria will be able do businesses to boost our economy and our country will move forward.”
SIKIRAT SHEHU, Ilorin
