Nigeria not competitively strong to benefit from AfCTA

Nigeria is not competitively strong in terms of stable power supply, technology and production capacity to fully explore the benefits of the African Continental Trade Agreement, AfCTA.
National President of the Association of Nigeria Licensed Customs Agents, ANLCA, Mr. Tony Nwabunike, expressed this position in Lagos, stressing  that while the agreement is good, the above reasons may open up the Nigerian market to exploitation as some African countries may go into importation from abroad and repackage such imported goods for the Nigerian market.

He said: “The AFCTA involves the opening of all the boundaries of Africa in Trade (boundless trade) so that every country within the continent can trade without barrier.

“Naturally, the problem is about the competitive analysis of each country. What is the core competence area of each country? For example too many countries that are well equipped technologically and manpower wise are even going to be more competitive than Nigeria. Nigeria is predominantly an importing nation and we have too many goods being dumped into the Nigerian system.

“Let me use Morocco as an example. Morocco today is producing so many things: tomatoes, sardines and other canned foods and they have all it takes to compete. They have good electricity too. Many of their industries are working and they are looking forward to exporting their products because they have good technology and manpower.

“But Nigeria is not going to give out so many things. In other words, Nigeria would not compete with some African countries and Nigeria being a consuming nation would like to import many things.

"Another problem is that so many countries that are in affiliation with other countries, such as Cameroon with the France, who find it difficult to bring in raw materials to Nigeria, will go round to refine it and bring it back into Nigeria without paying duties.

“Although we can now say we have the advantage of breaking monopoly of people like Dangote, as such other people can export cement to other African countries.

“The question is, does Nigeria have enough technology to hold its own? Do we have mega watts? How many mega watts do we have compared to that of Morocco that has constant electricity? Or even Ghana that does not have electricity problem and are ready to get their products moving? My fear is that Nigeria may not compete effectively.”