The Managing Director, Cowry Asset Management Limited has said that Nigeria would suffer on the interim following the implementation of the Common External Tariff (CET) of the West African sub-region owing to its current posture of a consuming nation.
Chukwu who made this position known while speaking in an interview with Primetime Reporters in Lagos however added that if Nigeria would in the long run convert its economy into a manufacturing economy where it would be in a position to export some of its products to other countries of the world, it would be the most beneficiary of the new tariff.
He observed that it was only those countries that have a strong manufacturing base that would reap bountifully from the CET as well as the common currency adding that that was why Germany had remained strong irrespective of whatever happened.
According to him,” You know this thing about the Common External Tariff, in principle, it is a wonderful concept but on the interim, Nigeria will suffer from that tariff because basically, Nigeria is a consuming nation of all the West African Countries”.
“So, whatever is imported in Benin Republic or the Republic of Togo will eventually end up in Nigeria and therefore the need associated with import will eventually emanate from Nigeria basically”.
“So, in the interim, the Nigerian economy will be the one to suffer most from the Common External Tariff but in the long run provided we are able to convert this economy into a manufacturing bas so that we will rather export to other West African countries and also to export to Europe and America”.
He continued,” Then countries with strong manufacturing base will be the one that will enjoy most from the Common External Tariff and the Common Currency and that is why Germany has remained strong because irrespective of what happens, their economy is a manufacturing economy and therefore exports to European countries and exports to other countries of the world. That should be the vision of Nigeria’s economic managers, to build an industrial base, an economy with the industrial base that will export to all West African countries, even externally”.
