As the implementation of the African Continental Free Trade Area (AfCFTA) agreement advances, the Chartered Institute of Logistics and Transport (CILT) Nigeria has doubted the nation’s preparedness to actively participate in the trade even as it claims that it will take a while before Nigeria can actively play its role in the trade.
Speaking in an interview with Primetime Reporters in Lagos earlier in the week, the National Executive Director, CILT Nigeria, Mr. Paul Ndibe stated that the position of the institute was informed by the lack of any known product that the country will be exporting to other African countries in order to earn revenue therefrom.
Ndibe who noted that although the country maybe exporting powdered cocoa, milk, detergent among other products, however questioned the standard manner of packaging for these products to be delivered to the user countries.
He pointed out that his expectation was that before now, government would have established centres or canvass for investors to establish centres that would produce certain things so that it becomes a standard for other countries to emulate.
According to him, “If we are the biggest economy, it means we should also lead in terms of commodities to be exported, their packaging, their sizes and dimension. Nobody is thinking about that. So, what you see is variety of product sizes which will not be economical for shipping. Even the cocoa that you are to export or the mango you may export, if you swap it, can it tell you the manufacturer and everything about it? No! Because they have no product information, we have not started to digitalize the product, even if you name the product, classify them.
“You will be surprised that South Africa does not understand Jollof rice as we do but they are in Africa continent. So, if you are in that business and you are exporting things that can make them make Jollof rice in South Africa, it will take a long time for you to really demonstrate that for them to understand, begin to do it, then have appetite for it and then sustain the appetite.
“The point I am making, those ingredients, do we have a lab that you will say for scent leave, this is the chemical composition, this is the packaging level. These are the things that we have not done which means we are not ready to actually take part in this African Continental Free Trade because it is for Africa. We can’t compete with European or Western economies but we can compete with other African countries in terms of economy of scale and then population and volume. So, why don’t we take advantage of this one that may be low hanging fruit? But I have not seen any concrete measure from the government in developing the capacity for actually taking advantage of African Continental Free Trade.
He disclosed that a country like Rwanda was exporting high brand tea to the United States which according to him was highly sought after because they had to bring United State Company to come and refine the process and give it the actual taste that they desire.
“So, if that tea is available to African, would we not feel like the Americans? They already have perfected that sector, so, where have we dominated? None! Is it the engine oil or the petroleum products? How do we export assuming that is what we export? Even that will not be possible except Dangote refinery is on and running because we are still having difficulties with local consumption. So, at all fronts, we are not getting it right and it is unfortunate.
“The other day, they said we are to import fuel from Niger Republic, that is an aspect of the African Continental Free Trade because that one will be tax free. So, if we are importing from Niger Republic tax free, of course, we are doomed and we are almost the largest producer of petroleum products in Africa. So, which one are we now sending to other African countries? It is not even the natural gas and then the petroleum products itself. So, there are a whole lot of problems that we need to address but unfortunately, you need to pull relevant bodies together in order to address these concerns”, he asserted.
On what the National Action Committee (NAC) set up to fashion out modalities for Nigeria’s participation in the trade was doing, the CILT chieftain said, “Well, the institute, interestingly, is serving on that committee but it is just a member and whatever is the discussion, the institute will pass it to the National Action Committee on that. But the critical thing is that do they have the institutional framework for implementation? Of course, it is an agency to get people connected and think of how. If you are able to propose how, do you have the financial muscles to establish?
“So, it is not just having to discuss and say what and what may be feasible under the situation. How do you implement? You will be surprised that countries like Ghana, Mauritius up to Tanzania, South Africa and Egypt will overtake Nigeria because they will bolster their own local economy.”
Photo: The National Executive Director, CILT Nigeria, Mr. Paul Ndibe.
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