MAN suffers setback as NACCIMA joins support for AfCFTA

The Manufacturers Association of Nigeria (MAN) has suffered a setback on the African Continental Free Trade Area (AfCFTA) as the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) says the country has no other option than to sign the trade deal.

NACCIMA says the treaty holds enormous economic benefits for Nigeria, including an opportunity to tap a $2.5 trillion African market, urging the federal government to sign it without delay.

Speaking in Lagos on Monday, Alaba Lawson, national president of NACCIMA, said the country cannot afford to be excluded from a common African market as it is a veritable strategy to raise the competitiveness of African economies in the global economy.

“NACCIMA’s position is that our dear country should sign the AfCFTA,” said Lawson.

She pointed out that Nigeria has been closely and long involved with the vision of an African Free Trade Area right from the establishment of the Organisation of African Unity (OAU), counselling that government should step up policies that will ensure that local products and services are market-ready for the African continent within the shortest possible time.

The AfCFTA is a trade treaty that seeks to unify the African economy by reducing all trade barriers. Over 45 countries, including South Africa, have already signed up, but Nigeria is yet to do so, as the federal government, in line with the position of local manufacturers, says it is not yet ready to endorse any agreement that will jeopardise Nigerian industries.

Currently, MAN is the most vocal organisation canvassing against the treaty. The position of the manufacturers is anchored on poor infrastructure, lack of steady power supply and dumping which make locally manufactured products uncompetitive.

But according to Lawson, in order to take full advantage of the AfCFTA, government needs to intensify current efforts to eradicate non-tariff and regulatory barriers to international trade such as border delays, burdensome customs and inspection procedures, as well as ensure that multiple licensing and taxes are eliminated.

“A situation where it is easier to import than to export will defeat the purpose of signing the AfCFTA,” she cautioned.

She stated that a consensus has emerged, after stakeholders’ consultations, that Nigeria must be part of the AFCTA for numerous reasons, which include the fact that it is a platform for our SMEs to be integrated into the regional economy and a means of acceleration of women’s trade and economic empowerment.

“While we continue to address the issues around the AfCFTA, and work on a strategy for implementation to tackle the problems, we should sign the agreement now and set up an all-embracing implementation committee in readiness for when it will finally take off,” she added.

ODINAKA ANUDU