Stakeholders at the recently concluded one-day forum organised by the Lagos Chamber of Commerce on the African Continental Free Trade Area (AfCFTA) want the federal government to put necessary safeguards, systems, soft and hard infrastructure in place before signing the trade treaty.
They say such measures will enable the country to maximise the potential of the free trade treaty.
In a communiqué signed by Muda Yusuf, director-general of the LCCI, the chamber says there must be consumers and market right of access to multiple and diversified products and services.
The communiqué says that there is a need for protection against abusive and injurious parties in and outside Nigeria based on on-going capacity expansion of trade laws, adding that investment opportunities should be made clearer for Nigerian entrepreneurs.
It further says that stakeholders want global best practices through standardisation of processes, products and services.
It adds that stakeholders’ major argument against the signing of AfCFTA was fear of numerous bilateral trade agreements of member countries of African Union with the rest of the world as well as Nigeria’s underdeveloped industrial and infrastructural profile.
Stakeholders noted that for AfCFTA to benefit the country, existing trade focused bodies such as the Nigerian Diaspora Direct Investment Summit, National Trade Consultative Committee and the Nigerian Industrial Policy and Competitiveness Advisory Council should be bolstered , with trade and infrastructure interconnected, the communiqué states.
“Stakeholders proposed that safeguards should be put in place for the Nigerian economy and on sensitive sectors on transhipment, dumping and expect surge of imports,” it reads.
“Stakeholders proposed an effective framework for the enforcement of Rules of Origin. Concerns were expressed on the prevailing disconnect between regulatory agencies and policy inconsistencies among countries on the continent. Participants called for policy coherence and the reinforcement of interconnectivity between agencies to protect consumers and the Nigerian economy, as well as enhance interface with among trade, investment and governance.”
It was concluded the LCCI work with the National Office on Trade Negotiation (NOTN) and take leadership in developing appropriate message on policy advocacy on consumer protection to sharpen standardisation process.
The AfCFTA is easily the largest agreement since the World Trade Organisation in 1994. It is targeted at creating a single market for the continent’s 1.2 billion, developing a market of $3.4 trillion.
The treaty will liberalise 90 percent of products made in Africa and will establish a customs union across the continent, allowing free movement of goods and persons. Many countries in Africa had signed the agreement earlier in March in Kigali, but Nigeria and South Africa opted out. South Africa, however, is concluding discussions and is expected to sign soon, according to those familiar with the country’s negotiating team.
Nigeria has fewer than 180 days to sign or risk starting afresh to negotiate, a move that could hurt the economy and rub it of free trade benefits.
The LCCI had earlier expressed support over the treaty. The Manufacturers Association of Nigeria (MAN) believes, like the LCCI, that it could hurt the country’s industrial sector unless certain measures are put in place to improve infrastructure and protect local firms.
