Only exporting countries will benefit
significantly from the African Continental Free Trade Agreement
(AFCFTA), a financial consultant, Mrs Lolade Adesola, has said.
significantly from the African Continental Free Trade Agreement
(AFCFTA), a financial consultant, Mrs Lolade Adesola, has said.
Adesola told the News Agency of Nigeria (NAN) in Ibadan on Wednesday
that the trade agreement was all about trade liberalisation and removal
of customs duties for members of the African Union (AU).
that the trade agreement was all about trade liberalisation and removal
of customs duties for members of the African Union (AU).
“ What the agreement means is that Nigeria will shift her source of importation from Europe or Asia to African countries.
“When we import from African countries, the country we import from will not pay custom duties.
“But if we import from the United Kingdom or China there will be payment of customs duties.
“ Not only are we just exchanging our source of import, we are now
losing income because customs duties collectible from the British goods
or Chinese goods will not be payable if we patronise African countries.
losing income because customs duties collectible from the British goods
or Chinese goods will not be payable if we patronise African countries.
“The issue for us is to look at how well we are in doing in manufacturing and how well we are in terms of our pricing.
“Our pricing is very high in Nigeria as imported goods are cheaper than the locally produced ones.
“If the price is high, we cannot tell the man in Kenya to import
from Nigeria if he is going to get it at a cheaper price in Sudan or
Egypt.
from Nigeria if he is going to get it at a cheaper price in Sudan or
Egypt.
“So we need to look at our cost of production, our own value chain
and what makes it so expensive for us to produce goods in Nigeria, ”
Adesola said
and what makes it so expensive for us to produce goods in Nigeria, ”
Adesola said
She commended the on-going consultations by the Federal Government
with stakeholders such as labour and the private sector on the
agreement.
with stakeholders such as labour and the private sector on the
agreement.
Adesola added that the trade agreement has many hurdles to cross
before coming into effect in each country ’s national assembly in
addition to approval by the Heads of Government.
before coming into effect in each country ’s national assembly in
addition to approval by the Heads of Government.
She maintained that Nigeria must boost its export if it must benefit from the agreement.
