—– Experts proffer way forward for continent at Zenith Bank webinar
COMFORT EKELEME, Business Editor
The Central Bank of Nigeria (CBN ) Governor, Mr. Godwin Emefiele on Tuesday said that Nigerian firms will enjoy a boost in trade worth over $504 billion in goods and $162 billion in services from the African Continental Free Trade Area (AfCFTA), if fully implemented.
Emefiele however, urged Nigerian banks to leverage on their presence in other African countries to support Nigerians seeking for new market in the continent.
He also encouraged businesses to access the N500 billion Non- Oil Export Stimulation Facility set up by the apex bank.
The CBN Governor who disclosed this at the 6th edition of Zenith Bank International Trade Webinar, themed ‘Nigeria’s Economic Prosperity: The Role of Intra-Regional Trade and Non-Oil Export Initiatives’, equally stressed the need for the Federal Government to seize the opportunity provided by the AfCFTA to ensure that Nigeria plays significant role for international and domestic manufacturing companies.
He said the COVID-19 pandemic and its resulting implications to crude oil prices, has further affirmed the need to diversify the economy and create new trade opportunities for Nigeria as part of the recovery efforts.
According to him, the volatility in the oil market has exposed the economy to significant shocks, adding that the AfCFTA offers huge opportunity for the Nigerian private sector to export into new market, particularly in the area of manufacturing, ICT, Agriculture and financial services.
“With a population of over 200 million people, Nigeria presents itself not only as the largest market but large opportunity to establish not only raw materials or primary commodities but also the capacity to support the development and manufacturing business.
“I believe the AfCFTA will provide opportunity for the young talented Nigerians to expand their services across the African region, developing trade portals that could support instant sale of goods manufactured in Nigeria to consumers in other parts of the continent. This is one aspect that will support the creation of jobs in Nigeria and improve foreign exchange inflows,” Emefiele said.
Speaking further, he noted that there is urgent need to pursue with vigour, Africa’s economic independence.
Earlier in his opening remarks, Group Managing Director/ Chief Executive Officer of Zenith Bank Plc, Mr. Ebenezer Onyeagwu said the 6th Zenith Bank export seminar is extremely important because of the fact that we are in an era where the world is steadily moving away from oil.
He noted that the world is progressively looking for cheaper, more convenient and affordable alternative sources of power.
He said: “As long as the world is thinking that way, we don’t need any soothsayer to tell us that the future of oil is in question. Our country Nigeria, cannot continue to depend on oil. So it is important for us not just to continue to imagine our country without oil, but begin to leave out the spirit and details of Nigeria without oil, Nigeria falling back to its usual natural endowment.
“We have historical evidence to attest to the fact that this country is endowed and the endowment of this country is so uniquely done by the Almighty God in such a way that what you can’t get in Cross River, you will get it in the North, what you can’t get in the North, you will get it in the West. So the endowment of this country is complementary,” he said.
Speaking further, Onyeagwu said “It is very imperative for us as a country to key into the Gederal Government agenda of economic diversification with particular reference to non-oil export. The other reason why we find the theme for this programme very unique is the fact that the commencement of the African Continental trade arrangement is a perspective that will open up the whole of Africa for Africans to be able to trade with each other..
He noted that in 2020 the oil export accounted for $9.44 trillion, while non-oil export was $1.3 trillion, adding that the non-oil export cannot sustain the economy.
Also speaking at the virtual event, Secretary General of AfCFTA, Wamkele Mene said that African leaders need to accelerate productive transformation to create jobs for the 29 million young Africans who will reach working age each year between now and 2035.
One of the lessons learnt from the outbreak of the CPVID-19 pandemic, he said is the fact that over reliance on exporting primary commodities is a scourge on Africa’s growth prospect.
African needs to accelerate productive transformation to create jobs for the 29 million young Africans who will reach working age each year between now and 2035, he added.
He said, the event provides an excellent opportunity to provide an intra Africa trade and non- primary commodity, non- oil export and to find ways of generating and improving the quality and quantity of non-oil export goods in Nigeria and the rest of the African continent.
“This has been made more urgent by the outbreak of the COVID-19 pandemic which has impacted the demand for oil and by extension, the price of crude oil at the international commodities market, thereby exposing Africa’s over dependence on crude oil earnings.
“The good news is that the AfCTA has the potential to improve the export certification of products produced across African continents. As Africa’s leading economy Nigeria with a population of over 200 million people, offers a unique market and opportunity. In addition, a large segment of the population is young and entrepreneurial while 5.3 million people entered the labour force in the year 2018 alone,” he said.
According to him, agriculture is expected to play a significant role in Nigeria’s economic diversification going forward, stressing that the AfCFTA can complement Nigeria’s national development agenda.
He also said that the AfCFTA presents an opportunity for the Nigerian economy to move away from oil dependency.
He however noted that there are rules already in place to prevent dumping of substandard products.
President of African Export-Import Bank (Afreximbank), Prof. Benedict Oramah said that Nigeria as a country should be proud to be one of the main drivers of the progress with regards to regional integration through the continental free trade agreement.
He said the priority of the Nigerian government should be to ensure that businesses are well prepared to take advantage of the market opportunities AfCFTA has thrown open.
Government should trigger an adjustment process for entities in sectors that are largely to be impacted by the agreement, adding that Zenith Bank has a role to play in helping companies to think continentally.
“Nigerian Banks including Zenith Bank, UBA, Ecobank, GTB, etc, have established presence in over 30 African countries. This gives Nigeria a huge competitive advantage. These advantages can be seen in the case of cross border payments,” he said.
It would be recalled that President Muhammadu Buhari signed the agreement establishing the AfCFTA at the opening of the 12th Extraordinary Session of the Assembly of African Union Heads of State and Government that took place in Niamey, Niger Republic.
Nigeria joined 54 countries in ratifying what is considered the largest continental free trade agreement in the world.
The agreement ensures Nigerian products and services can now be exported beyond its borders without having to worry about multiple tariffs and barriers to trade. It turns allows other competing manufacturers to export products into Nigeria.
