The Director-General of the World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala, on Monday highlighted steps Nigeria should take to avert economic collapse.
The
steps include diversification of the economy, bold economic reforms, and pursuit
of technological development.
She
warned that the country risked economic doom in no distant future if it failed
to immediately embark on diversification from oil to other sources of survival.
Painting
a gloomy picture of fossil oil in the future, the former Finance Minister
urged speed, stressing that delay could be dangerous.
She
stressed: “We need to have a game plan to be able to escape the consequence of
a monolithic economy in a fast-changing world.”
She
spoke with reporters, shortly after visiting President Muhammadu Buhari to
thank him and Nigerians for their roles in her emergence as the head of
the WTO.
The
former World Bank chief hailed the feat achieved by the Dangote Group.
She said the
diversification of the economy was one of the issues she discussed with the
President
According
to her, Nigeria should tap into renewable energies, since some
countries have already set timelines to end the use of
vehicles and equipment operated with fossil fuel.
Specifically,
Okonjo-Iweala mentioned Norway which will from 2030 no longer have
petrol-powered cars plying its roads.
She
said: “We have to start transitioning this Nigerian economy into other
areas, where we will be able to create jobs and earn foreign exchange.
“As
a country, we really have to go into strong reflection; we need to have a
period of transition and how we are going to use it. We have to start thinking
about how we transition from fossil fuels and I’m really worried about that. We
need to have a game plan to get there.,
We
also have to start looking at the horizon where many countries are now moving
to electric cars and many developed countries where cars are manufactured or
not, have said that from 2025, I think Norway said from 2030 and on, they are
banning any cars that use petrol. Diesel is already out.
“If we don’t start,
we will find ourselves at the end of a couple of decades with no way of being
able to make an additional foreign exchange for some of the products we need.”
Although
she welcomed the establishment of the Dangote Refinery, the WTO boss said she
wished it had come earlier than now.
She
added: “Well, it’s the largest refinery, I wish we had done it years ago. If we
had done it earlier and encouraged Alhaji Dangote, who is doing a very good
thing, it could have been better because right now, we would have been able to
have our own oil refined here and not having to import.
“But
we are where we are. I think he’ll be able to service other countries on
the continent. His cement industry is already in 16 or more. So, yes, we
are congratulating him,”
The
WTO chief also said the world body was worried about Nigeria’s multiple
exchange rate regimes and how they affect trade.
She
said some member-states have complained about Nigeria invoking
its balance of payment agreement article to be able to
conserve foreign exchange.
Mrs.
Okonjo-Iweala said: “The WTO has one of the agreements of a balance of payments
and Nigeria certainly invoked this to be able to conserve foreign exchange.
“Some
members have brought a complaint against us (Nigeria) that we shouldn’t have
used its article in that way. The WTO is concerned about foreign
exchange, the way we manage it, the way we use it, and how we use it to support
manufacturing or imports and exports in our economy.
“I
think that we had that discussion with them, they complained about the exchange
rate regime, and we (Nigeria) tried to explain. Anyway, I shouldn’t say
we because I’m now DG WTO, it is for Nigeria’s representative to explain to the
WTO, to those members complaining why we’re doing this.
“We’re
also going to see the Governor of the Central Bank of Nigeria (Godwin
Emefiele), and we will undoubtedly discuss some of these issues.”
She,
however, allayed fears that embracing the free trade policy of the world body
would harm Nigeria’s economic diversification drive.
Mrs.
Okonjo-Iweala said special and differential treatment could be applied to
prevent vulnerable countries from collapsing under completion.
She
said that duties could be applied on imports to prevent the country from being
a dumping ground.
Mrs.
Okonjo-Iweala admitted that despite helping to lift millions out of
poverty, free trade has not been beneficial to all, especially women.
On
COVID-19, she advised Nigeria to set up local vaccine manufacturing, warning
that coronavirus would not be the last pandemic.
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