The Manufacturers Association of Nigeria (MAN) says the African Continental Free Trade Area (AfCFTA) is shrouded in secrecy and that Nigeria will be worse for it if the country signs the agreement in its current form.
Speaking at a press conference in Lagos, Frank Jacobs, president of MAN, commended the National Office on Trade Negotiation (NOTN) for the just concluded nationwide consultations and sensitization programme on AfCFTA, but added that NOTN version of the outcomes of the stakeholders’ engagements and sensitization as reported in the media does not adequately reflect the overall proceedings and factual expressions at those meetings.
Jacobs stated that some of fears originally expressed by MAN have not been doused or addressed.
“We are worried that this could be misleading and, more importantly, may not put Nigeria in good stead and could inexorably put the nation in a disadvantaged position if or when the implementation of the AfCFTA commences.
“We are now even more worried that, in spite of the widespread concerns that necessitated Mr. President’s reservation of his signature at the Summit in Kigali, the subsequent activities of the NOTN was not tailored towards addressing those concerns. Rather than squarely addressing those critical issues, all efforts were geared towards extolling the laudable objectives of the AfCFTA, its potential benefits and what Nigeria is expected to benefit from its implementation.”
MAN says this is rather simplistic and cannot be the way to go. The AfCFTA is a pact among African countries targeted at breaking barriers to free trade among continent’s countries.
According to Jacobs, the agreement to the adoption of the 90:10 percent Market Access ratios to be achieved in five years lacks empirical basis and evidence of due consultation and accommodation of concerned and affected stakeholders and operators.
He stressed that Nigeria agreed to such a short period for the implementation of the Market Access without negotiating the Rules of Origin.
“Right from the period preceding the Kigali Summit and up until now, the content of the Nigerian offer has remained unknown to manufacturers who are the number one stakeholders to be positively and or negatively impacted by the proposition. It is noteworthy to say here that MAN had requested for this vital information severally, including when the chief negotiator led his team to the MAN House as part of the consultation/sensitisation programme,” he said.
MAN helmsman advised the government to, as a matter of urgency, commission and conduct an Offensive Export Market Discovery Study.
Jacobs said this would reveal the specific manufactured products which might be in high demand in each African country; products demands that may be satisfied by Nigeria’s manufactured products (now and near future); tariff and non-tariff related market access constraints which currently limit Nigerians from exploring opportunities available in the continental export market, and extent of AfCFTA tariff liberalisation needed to realise the opportunity.
He further advised the need to conduct a Defensive National Economic and Industrial Priority Study to reveal the specific products that may be negatively impacted or threatened by import liberalization in Nigeria in the context of AfCFTA; consequences of continental import penetration on Nigerian firms; impact on government and the economy; recommendations on adjustment support required to address the consequences of AfCFTA shocks (should Nigeria sign) on the industries and workers that would be laid off.
He also stressed the need to study the impact of AfCFTA on Nigeria’s manufacturing sector.
“Additionally, we are also worried that the director general of NOTN ‘chief negotiator’ doubles as chairman of AU-AfCFTA Negotiation Committee and may need to balance allegiance to both Nigeria and the AU-AfCFTA Negotiation Committee. As such, we implore the federal government to consider appointing a national chief negotiator that will be saddled with the responsibility of negotiating specifically for Nigeria.”
