Nigeria advised to compete in Sahel economy

as EU ambassador says Nigeria’s competitors not Europe, America

The European Union ambassador to Nigeria and the ECOWAS, Michael Arion, has strongly advised Nigeria to urgently join the Sahel economy through massive cultivation of cotton and cashew in the northern parts of the country.

Rivers State and other south-eastern states should stage a huge return to palm oil and join the plantation system of agriculture as immediate steps in diversification of the distressed economy.

Arion, who spoke as guest speaker at a day economic seminar on ‘Beyond Oil and Gas,’ by the Rivers Entrepreneurs and Investors Forum (REIF), said Nigeria must realise that its competitors were not Europe and America but the BRICS countries (including Brazil, Russia, India) and MINT (including Pakistan and South Africa).

He said Nigeria held huge advantages in the cultivation of cotton and cashew, now hot cakes around the world.

He said any investor anywhere in the world who wanted to invest in the emerging economies would weigh options in the BRICS and MINT countries including security, regulatory framework, repatriation of profit, court system to protect business agreements, cost of doing business, etc.

He particularly warned Nigeria to look into global ranking on cost of doing business, saying this was key to attracting foreign investments.

On impact of crash of oil prices, the ambassador said the impact on Nigeria’s gross domestic product (GDP) could be minimal on the short term, but was very huge on crash of government revenue. “When the oil prices fall by half, the budget is also cut by half.”

The EU leader in Nigeria warned about the ugly consequences of the recent Central Bank of Nigeria (CBN) ban on importation of certain goods, saying importation and exportation go hand in hand. He made it clear that trade protectionism was bad as a fundamental policy, advising that where necessary, it should be applied to certain sectors on a short term because the long term was always harmful to any economy.

As he put it, “If you do not import, you will not export. You need to import machineries to power your industry, at least. Protectionism is bad for any economy. Less protectionism and the economy of Nigeria can be improved. It has to be temporary and sector specific. Less protectionism should be implemented at the level of ECOWAS.”

He wondered why Nigeria was not very active in the economic front in West Africa, as it was in the military and political fronts.

Other factors he mentioned to boost Nigeria’s economy include image. “The image is very critical. Also, Nigeria has to drastically improve its competitiveness. Good infrastructure is key. Ports should be developed. Roads, railways and power are key.”

He also touched on other sensitive points thus: “Return to the basics of economics and diversification of the economy. Rich people should pay more taxes; more people should pay tax, diversification of sources of revenue for the state. The major problem facing the economy is to develop the secondary sector. Industrialisation is the future of Nigeria. We must go from theories to action.”

Arion advised the states in the South East to stage a massive return to palm oil, which he described as a huge global economy, and wondered why Nigeria was importing palm oil.

The president of the REIF, Ibifiri Bobmanuel, said the seminar would lead to a blueprint that would form a robust discussion with the Nyesom Wike administration, saying the recommended steps must be followed to save the state’s economy.

Governor Wike, represented by the secretary to the state government, Kenneth Kobani, talked of the huge respect the administration held for REIF and assured of working on the recommendations.

He mentioned various pro-business actions so far taken by the young administration and reiterated the order by local councils and tax collectors not to shut down businesses, but to apply the rule of law.