By Stehen Ubanna
Pius Aktah, a Lawyer and Executive Secretary, Nigerian Shippers Country, Nigerian Shippers Council, NSC, appears to have given an insight on why the volume of trade between African countries is very low. The Lawyer was have said to attributed the inability of the African countries to trade with each other to the fact that’’ it is more expensive compared to trading with other parts of the world’’, had said that it may be difficult to reverse for now.
The NSC boss may have alluded to trading with countries United Kingdom, UK, France, Germany and Asian countries of China, India, and South Korea including the North American countries of United States, Canada, Brazil including the South American country of Argentina, may be less expensive because of the established basic infrastructural facilities which gives room to trading without tears. That could not be said of the African countries.
Given an insider information ,the NSC, Chief Executive Officer, CEO, who was said to have been represented by Rotimi Anifowoshe, A Director in the agency at a one day Workshop on the Blue Economy : The Place of Nigeria’s Maritime Industry and Challenges of Customs Revenue Generation and Anti-smuggling Operations, organized by The League of Maritime Editors, popular, LOME,, had said that there are several bottlenecks such as ‘’poor infrastructure, cumbersome border procedures, trade restriction, arbitrary tariff and high cost of doing business in the general in the African Continent’’ which inhibit trade between the African countries.
He was said to have given his words that the agency will continue ‘’to promote and advocate for full digitalization of the country’s port processes and operations’’ in line with President Bola Ahmed Tinubu’s Government ‘’Renewed Hope agenda.
Indeed, the NSC, under the Leadership of Akutah, was said to have already initiated some measures as part of its contributions to achieving the present government’s economic agenda as it relates to the blue economy, which Oyetola Adegboyega, a former governor of Osun state and now minister of marine and Blue Economy had described as a monumental step ‘’ towards harnessing the vast untapped potential of Nigeria’s maritime sector’’.
The minister had said that the blue economy project will go a long way to expand trade between Nigerian and other African countries, particular, countries in the West and Central African sub-regions. He was said to have made it clear to those that cares to listen that the country will leverage on its huge maritime resources ‘’to create more jobs, increase revenue and promote environmental stewardship’’.
This is evident with the establishment of Border Information Centres, BICs, , at the officially approved Borders across the country, like Seme-Krake Joint border, Idiroko, Jibia –Maradi border, Illela border, Kamba border and Mfun border in Cross river state, amongst others by NSC .
The agency was said to have also established complaint handling and dispute resolution mechanisms for mitigation and out of Court settlement between shipping service providers, promotion and facilitation of the establishment of Inland Ports, IDPs across the country ‘’to ensure shipping services reach the door steps of shippers that are located at the hinterland areas and further assist in the evacuation of transit trade to landlocked countries .
The maritime agency was, was said to have established ‘’Vehicle Transit Areas, VTAs’’, to serve as a resting place for trucks laden with cargoes and other road users drivers at the border Communities.
This is in addition to the setting up guidelines for tariff and standard Operating Procedures and cost moderation to enhance trade between Nigeria and the neighbouring African countries and ensure cost moderation.
Anifowoshe , who represented the NSC, helmsman at the LOME event had confirmed that the agency had engaged the shipping Companies, both indigenous and foreign, including the terminal Operators on the need ‘’to establish air and competitive tariff to forestall diversion of cargoeS from Nigeria to Benin and other neighbouring ports in the West African sub region.
Other interventionist measures that was said to have been initiated by the agency to promote international trading between Nigeria and the other African countries are sensitization and training of industry stakeholders to encourage adoption of international best practices in doing their business transactions’’.
It was said to have already engaged the Standard Organisation of Nigeria, SON, under the close watch of Ifeanyi Chukwunonso Okeke National Agency for Food and Drug Administration, NAFDAC, under the Leaderhip of Moji Adeyeye, a Professor, and other relevant stakeholders for talks to address the issue of rejection of Nigeria agricultural produce in other West African countries including the Central African country of Cameroun.
Bahir Adewale Adeniyi, Comptroller General, of Nigerian Custom Service, NCS, may have read the handwriting on the wall of the negative impact of the border closure between Nigeria and the neighbouring countries by the previous Administration to the Nigerian economy that he had met with the Director General of the Customs Administration, Benin Republic last April to strengthen the ongoing partnership between the NCS and in its Republic of Benin Counterpart.
The Nigerian Customs Comptroller General and his Beninois Counterpart were said to have deliberated on strategies aimed at increasing trade activities between the two countries and ensuring seamless implementation of the recommendations that was said to have been agreed during one of such meetings in Cotonou, the Benin Republic Capital.
Perhaps, as a follow up to the Nigerian Customs boss meeting with his Beneinois Counterpart last April, may have encouraged Tinubu, who is not happy over the low volume of trade between Nigeria and Benin Republic which put at about 2% to have engaged Patrick Talon, his Beninois Counterpart in bilateral talks last May, on how best’’ to strengthen the business relations between the two neighbouring countries.
A Presidency source told the Value News that the two West African countries Presidents were said to have discussed on how ‘’to expand trade and commerce between the citizens of the two countries without any bottlenecks.
The good news was that the two Leaders have agreed’’ to work together’’ unlike what Muhammadu Buhari, immediate past Nigerian President did while in office to forestall trade between the two countries and other neighbouing countries blamed to the rampant smuggling of prohibited goods like foreign rice, vegetable oil, textiles amongst others across the nation’s porous borders with theneighbouring Benin Republic, Niger and the Central African country of Cameroun into the Nigerian market.
Hameed Ali, a retired Army Colonel and a former Comptroller General of NCS, may have may have hit the nail on the head when he disclosed that the closure of borders between Nigeria and the neighbouring West African countries and Cameroun,had ensured that ‘’all goods are banned from being exported from Nigeria to these neighbouring countries or imported from these countries to Nigeria
. The Nigerian Government border closure with these three neighbouring countries may have killed trade between them that the Asian country of China had moved in to fill the vacuum that was said to have been created by Nigeria to ship in goods to the countries smuggled into the Nigeria through inappropriate routes to make mockery of. The Nigerian Government policy which was said to have brought the country’s economy on knees.
Many believe that with the implementation pf the African Continental Free Trade Area, AfCTA, initiated by the Organisation of African Unity, now baptized African Union , in 1963, described by maritime analysts as an action plan for ‘’boosting intra- African trade’’, the pilot initiative will accelerate trade among African countries .
Note that the objectives of AfCTA, is basically to create a single market for agricultural and manufactured goods and services , facilitated by free movement of persons in order to further deepen the economic integration of the African countries in accordance with the Pan African vision of an integrated , prosperous and peaceful African as enshrined in the agenda 1963.
Going by the vision of the foundation of the founding fathers , AfCTA, was also expected to create a Liberalised market for goods and services through successive rounds of negotiations , contribute to the movement of capital and natural resources and further facilitate investments building on the initiatives.
This is in addition to laying the foundation for the establishment of a Continental Customs Union, at a later stages of the project and resolve the challenges of multiple and overlapping memberships and expedite the regional and Continental integration process.
As a prelude to ensuring improved intra-African trade, may have informed why there are protocols of the AfCTA agreement which include the protocol on trade in goods, both agricultural and locally manufactured, trade in services, Rules and Procedure on settlement of dispute that needed to be fulfilled by the participating countries.
This is in addition to the protocols on investment, intellectual property rights and completion policy, all geared towards improving the trade problems between the African countries. The African countries in implementing the single market project were said to have agreed to a 90% tariff liberalization as a way to encourage member countries to trade with each other.
and neighbouring Republic of Benin appears to have taken advantage of the AfCTA, Protocols ‘’to strengthen the free flow of business across the border Communities between the two West African countries for the benefit of their their citizens.
Akinwumi Adesina, a former minister of Agriculture and Rural Development during President Goodluck Jonathan’s Administration is optimistic that investments in inter-state roads, rails, bridges, energy , road band and other regional infrastructure will boost trade and make Africa an investor’s haven in the coming years.
Analysts fears that there might be a snag to the implementation of the AfCTA, if the infrastructure challenge gap of up to the US $100 million, is not quickly addressed AfCTA, which may put the biggest project currently being initiated in the African Continent in danger not to succeed.
The AfDB, President may have gladdened the heart of Africans when he said that in the last six years alone, the developmental Bank alone, have invested well over US$44 billion in the provisison of basic infrastructure in the African Continent ranging from road, airports, seaports provision of portable water, sanitation, to energy and digital infrastructure.
