Bureaucracy in ETLS registration frustrating Nigerian exporters — LCCI

Nigerian exporters are facing undue bureaucratic bottlenecks while registering products in the Economic Community of West African States (ECOWAS) Trade Liberation Scheme (ETLS), which is managed by the Foreign Affairs Ministry, according to the Lagos Chamber of Commerce and Industry (LCCI).

The ETLS is the main ECOWAS operational tool for promoting the West Africa region as a Free Trade Area. Products moving within the region are required to do ETLS registration for easier identification.

At the quarterly state of the economy press briefing held in Lagos last Wednesday, the chamber said the situation was not healthy for Nigeria.

“There is growing complaint by exporters regarding the difficulty of exporting goods from Nigeria to other West African countries due to the bureaucratic bottlenecks of registration of products under. In the past Nigeria used to have Ministry of Integration and Economic Cooperation which had responsibility for facilitating trade with other African countries, but this ministry has fused into the Ministry of Foreign Affairs,” Babatunde Paul Ruwase, president of LCCI, said.

“We believe that the administration of ETLS should be moved from Ministry of Foreign Affairs to the Ministry of Industry, Trade and Investment, specifically the Nigeria Investment Promotion Commission (NIPC). This will improve the administration of ETLS and serve exporters better,” Ruwase recommended.

He reiterated the call for Nigeria to sign the African Continental Free Trade Area (AfCFTA), which is a treaty that is meant to remove trade barriers and achieve common customs union across the continent.

The position of the LCCI, however, differs from that of the Manufacturers Association of Nigeria(MAN), which is urging the Federal Government not to sign until impact studies are carried out to determine the effects of the treaty on the Nigerian economy.

But according to Ruwase, manufacturers should not worry as there would be subsequent protocols that need to be discussed and negotiated as they relate to specific sectors.

“It is also our understanding that adjustment could also be made as the process progresses. We should see the entire process and integration arrangement as work in progress. Trade issues are not static, they are dynamic. It is important to be part of the process in order to influence the direction of the agreement and protect our interest. If we can be part of the ECOWAS, we believe that we can also be part of AfCFTA. The safe-guard measures in ECOWAS can be replicated in the AfCFTA. The reality is that no economy can exist in isolation of other economies,” he said, adding that if smaller countries in Africa were not afraid of the AfCFTA, Nigeria with almost 200 million people should not be seen as a coward.

He explained that there is a strong nexus between political stability and economic progress, adding that as elections draw closer, an unstable political environment naturally will escalate the risk of investment, create anxiety and undermine the confidence of investors.

“Recent turn of events in the polity gives cause for concern. We urge all political actors to demonstrate restraint and refrain from activities that could undermine the stability of the polity and create avoidable social tension. This has become very important as political and electioneering activities gather momentum. No meaningful investment can take place where there is no regard for rule of law. We should not create a situation where citizens and investors (domestic and foreign) lose confidence in the state institutions. Public institutions are very important factors in regulating behaviour of citizens and stabilizing the society. A loss of confidence in state institution is a recipe for anarchy.

“We therefore need to ensure the credibility and integrity of our institutions. In this respect, we wish to reiterate the critical importance of respect for rule of law and independence and neutrality of the institutions of the state. In particular, we would like to underscore the imperative of non-partisan security agencies and judiciary. Independence of these two institutions is very critical at this time. The loss of citizens’ confidence in these institutions could lead to complete breakdown of law and order,” he added.

ODINAKA ANUDU