Lending voice to the need for Nigeria to dismantle trade barriers, former Acting National President of the Association of Nigerian Licensed Customs Agents (ANLCA), Dr. Kayode Farinto, has identified concealment of information, reliance on road transport, among others as major stumbling blocks hindering the nation from enjoying the benefits of the Africa Continental Free Trade Area (AfCFTA).
Farinto gave these highlights in a paper titled, ‘AfCFTA: Dismantling Trade Barriers, Navigating Regional Trade,’ which he delivered at the 2024 MARAN Annual Maritime Lecture (MAMAL) held in Lagos on recently.
He pointed out that pretending that all was well when it was not actually true is the greatest undoing to Nigeria
as a country in maximising the benefits inherent in the continent-wide trade
Farinto noted that “nobody expected a hitch-free take off but we should stop pretending and deceiving all Nigerians as if all is well.
“We are all aware of the controversy surrounding the first shipment under AfCFTA where according to Mr. Segun Olutayo, leader of the AfCFTA Coordination Office in Nigeria, was endeavoured to window-dress by saying that receiving Certificate of Origin under AfCFTA is only a preliminary step akin to a starting point and does not necessarily indicate that a shipment has been made.
“It’s high time we stopped this our attitude where we conceal and distort real information to confuse and convince Nigerians that all is well when we know that with speaking out, people can proffer solutions to whatever problem that arises.
“Giving out accurate information is one of the factors that can make AfCFTA a success (through information management).
“Concealing information from the public is not part of good information management and it runs negatively against the Freedom of Information Act. There’s nothing wrong with confirming to stakeholders when issues go wrong. All that is needed is allay their fears that whatsoever that is wrong can be corrected.”
Going further, he maintained that if the AfCFTA must succeed, the Nigeria Customs Service (NCS) must play a pivotal role in this, adding that one of the things that must be done was to ensure that trade was facilitated.
He said: “I watched with keen interest, Nigeria’s participation in the Biachara Africa 2024 Summit in Kigali where Nigeria businesses showcased their offering and was also delighted to hear a committal statement from the Comptroller General of Customs of the NCS, promising to ensure that trade facilitation becomes the focal point of the Service going forward, which has obviously been downplayed before now.
“It is not out of place for NCS to roll out its Standard Operating Procedure (SOP) for AfCFTA.
“However, I am glad to inform this gathering that the NCS, for once, seems serious about facilitating good trade. I rely on a recent circular released to its officers to ensure that issues of alerts are streamlined and every deputy comptroller in charge of revenue has been given a marching order to ensure compliance by their officers.
“What is only needed to be added is sanctions for non-conformists. If this is achieved, the major monster that can kill the Africa Continental Free Trade Area agreement has been successfully eliminated.”
Insisting that the Nigeria’s Maritime Sector had not fared well in the area of logistics management, he however blamed it on the nation’s inability to embrace multi-modal transport system, noting that Nigeria’s reliance on road sector alone was a stumbling block and a barrier to free flow of trade.
“The Ministry of Marine and Blue Economy needs to liaise with the Ministry of Trade either on a Private Party Agreement (PPA) or taking it as its core responsibility to ensure that our over reliance on road is stopped.
There is need for rail connectivity between the hinterland and our ports. Barge operation should be employed to reduce the congestion and traffic on road and to save time for the success of the Africa Continental Free Trade Area Agreement,” Farinto said.
Pointing out that non-tariff barriers including technical barriers were very many in Nigeria, Farinto insisted that virtually all federal government regulatory agencies had one fine, levy or the other which he said was killing trade.
“Take for example, a regulated item by either the Standard Organisation of Nigeria (SON) or National Food and Drug Administration Control (NAFDAC) must pay many levies or taxes such as import permit, MANCAP, money for examination to be conducted, and fees to be paid before labelling rights are granted,” Farinto said.
Earlier in his welcome address, the President of the Maritime Reporters’ Association of Nigeria, MARAN, Mr. Godfrey Bivbere, who acknowledged that AfCFTA represented a groundbreaking initiative by the African Union, designed to create a single market for goods and services, promote free movement across borders and unlock the immense economic potential of the continent.
He however, identified barriers such as inadequate infrastructure, regulatory bottlenecks and operational inefficiencies as bane to the seamless flow of goods across the continent.
He, therefore, submitted that for Nigeria to maximise the benefits of AfCFTA, it must address critical requirements including: Improved Trade Infrastructure -Enhanced Roads, Transit Trailer Parks, and functional scanning facilities at ports; Efficient Procedures – Compliance with Rules of Origin, RoO and streamlined export processes as well as Capacity Building – Training Customs officers and other stakeholders to align with AfCFTA protocols.
Others according to him, include Investment in Maritime Assets. “With intra-African freight expected to increase by 28 per cent and maritime demand by 62 per cent, we need significant investments, including the addition of 100 vessels to facilitate transport as well as Leveraging Technology and Innovation to Facilitate Trade.
“As laudable as AfCFTA is, some persons in Nigeria are worried that our lack of infrastructure (mainly energy and road) and inconsistent policy will continue to affect our production level.