EU, ECOWAS in talks over £6.5bn support facility for Nigeria

Authorities of European Union (EU) and Economic Community for West African States (ECOWAS) are already in talk to up the £6.5 billion support fund for upgrade of infrastructure across the sub-region.

The negotiation was part of efforts geared towards facilitating the signing of the Economic Partnership Agreement (EPA) between EU and 16 ECOWAS members States.

Gbenga Obideyi, Director of Trade for ECOWAS stated this in a chat with BusinessDay at the sideline of the Media Workshop on International Trade Agreements held in Abuja.

“If you look at the aspect of the EPA text, there’s an aspect on EPA development among other things is the provision of some amount of money to address some of our deficit particularly infrastructure and Industry and so on.

“Again, it’s one of the areas Nigeria expressed reservation that we are 16 countries involved in this EPA configuration and you are given such amount of money. So Nigeria expressed deep dissatisfaction with the volume of the amount.

“So again, the EU and ECOWAS are looking at that to see what can be done. They call it support to EPA. It’s £6.5 billion for the 16 member  states and it’s for five years,” he said.

He explained that there is need for Nigeria as the largest economy in Africa to sign the pact considering g the leading roles played in regional integration.

According to him, 13 out of 16 West African countries except Nigeria, The Gambia and Mauritania are yet to sign the pact.

“If Nigeria does not sign, while 13 member states have signed, presently the picture we are having is multiple trade regime or policy in one single region.

“Failure to sign by Nigeria shows that the region is not integrated and deprived the counter from other opportunities endowed in the EPA,” he noted.

On his part, Richard Young, EU’s Deputy Head of Delegation in a chat with our Correspondent emphasised the need for Nigeria to diversifying the economy to 85% non-oil to 15% oil base.

“When you look at the trade figures with EU, the trade volume is dominated by oil products. This (EPA) is the future of Nigeria. Nigeria has to diversify its economy by 10 to 15% oil base to other exports of 85% non-oil base.

“And so there’s the real need to diversify the export through the EPA, where you can export cocoa and textile products to European Union.”

In the bid to address various socio-economic challenges bedevilling the country, he emphasised the need to put necessary policies that will aid industrialisation, exchange rate and infrastructural challenges for export.

Also speaking, Filippo Amato, noted that CBN restriction of forex was aimed at helping local industries while the EPA will help industrialisation of the country at long run.

He added that the EPA also provide opportunities for development cooperation between EU and ECOWAS member states beyond the trade agreement.