The Chartered Institute of Logistics and Transport (CILT) Nigeria has said that the blatant refusal of the federal government of Nigeria Nigeria to sign the Africa Continental Free Trade Agreement (CFTA) will be disastrous as well as injurious to the country going by its population and its intent to grow the economy.
The National Executive Director, CILT Nigeria, Mr. Paul Ndibe who made this position known in an interview with Primetime Reporters in Lagos recently noted that it will be wrong for the Nigerian government to be promoting economic zones and free trade zone in the country only to jettison the continental Free Trade Zone which he believed would an opening for growth in the economy.
Ndibe observed that if Nigeria discouraged inter-African trade which he said was where it had competence, it might not be able to grow economically as it didn’t have the capacity to compete with the technologically advanced nations.
He recalled that in Mauritania where the last African Union meeting was held, it was announced that five additional countries had now endorsed the CFTA bringing the total to forty-nine out of fifty-five countries adding that it’s almost 90 percent of the African countries that had endorsed the Africa Continental Free Trade Agreement even as he said that Nigeria would not be an exception.
“It is lack of total information on issues relating to Continental Free Trade Area. The reason is this, locally, it has just been announced recently that Nigeria will be investing N250 billion in establishing the Nigerian Special Economic Zones and they are going to do this through a company called the Nigerian Special Economic Zones Company Limited. In fact, the Federal Executive Council has already approved it. It’s an economic zone intended to be cited in Aba, Kano, Katsina, Gombe, Calabar, Edo, Ebonyi, Sokoto, Lagos and two others.
“Now, what I am saying? Nigeria is encouraging Free Trade Zones and economic Zones, if government is encouraging Free Trade Zones and Economic Trade Zones where it intends to invest N250 billion, what does that show? That government believes in Economic Zones. It will lead to the growth of industrialize economy, it is to grow the economy, it is to create employment, it will increase productivity both in the real sector and the manufacturing sector. This is our local economy, when we increase in this production rate, what happens? You look out for export, where do you export to? You export to your immediate environment which may be the African economy.
“As a matter of fact, we cannot compare to the developed countries in manufacturing products in terms of maybe computer units or vehicles. We just discover that because of our lack of infrastructure, we are now depending on importation of vehicles, maybe fairly used; we don’t have the capacity to manufacture our own brand, so also in so many other countries in Africa. But Africa is a huge economic centre.
“So, if we discourage inter-Africa trade, that is where we have competence, we might not be able to grow economically because we can’t compete with technology in Japan, we can’t compete with technology in France, we can’t compete with technology in Germany or with technology in America, we can only think of competing around Africa. Therefore, the Continental Free Zone will give us the impetus to grow into many Africa Countries and develop economically while growing our economy.
“If we grow these domestic Free Trade Zones where the Federal Government intends to invest N250 billion, where will the capacity go? Of course, even think of automobiles, if South Africa has the capacity for engine blocks and Nigeria has the capacity to grow and manufacture tyres and car seat because of huge rubber deposit and may be Kenya might be able in terms of plants and fibre to grow the windscreen. The plant for this vehicle can be in Zimbabwe or even in Botswana. Where they import the engine blocks from South Africa, Nigeria will supply the tyres and the rubber parts, Kenya will supply the glass and other things and then you have an African brand that can be used in Africa.
“This vehicle might not compete with the developed countries’ brand because I think in Europe and America, they are thinking of electric cars. Now, we are looking at even the diesel and petroleum driven cars in Nigeria not even gas. So, while they are looking at solar or the electric cars, we are looking at the conventional cars. That technology is saturated as far as they are concerned but it is still virgin in Africa.
“So, Continental Free Zone will be an opening for growth in that direction and for some reasons, we don’t want to key into that economic window. That will be disastrous for Nigeria looking at our population and how we intend to grow the economy”, he said.
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