The Senate has resolved to review the ECOWAS Trade Liberalisation Scheme (ETLS) and the Common External Tariff (CET), saying Nigeria was not benefiting from the two trade instruments. DAVID AGBA reports
The Senates’ stance is coming after a mini public hearing it organised on the ETLS and CET in Abuja recently.
It will be recalled that the red chamber of the National Assembly had last year called on the federal government to put a halt to the implementation of ETLS and the CET saying Nigeria was losing billions of Naira in the name of regional trade agreements.
According to a communiqué signed by President, National Association of Nigerian Traders, NANTS, Mr. Ken Ukaoha, upper legislative house noted that in spite of its pivotal role in the region, Nigeria was being short-changed in the implementation of the two trade instrument in the sub region.
It noted that some countries in the region were taking advantage of the loopholes in the system to abuse the process.
Senate Committee Chairman on Customs, Sen. Hope Uzodinma, insisted that in the name of ETLS and CET, Nigeria Customs Service (NCS), has been unable to properly carry out its mandate.
“The Common Customs Service that is supposed to provide sufficient checks on abuses is not yet in place. And the cooperative agreement that should allow a joint border control is also not in place, therefore it leaves room for a lot of loopholes,” Sen. Uzodinma said.
Despite the benefits that would accrue the nations economy if the ETLS and CET is properly implemented, the some stakeholders present at the parley, stressed the need to address the concerns raised by the country’s highest legislative body if the country is to continue on the foothold of positive impacts that can trigger the needed escape from the present doldrums called economic recession.
However, the Senate called for a halt to further negotiations at any fora without a documented trade policy until such framework that clearly spells out thrust, objectives and strategies as compass for navigation of negotiation positions is in place.
According to those present at the interactive forum, the absence of a documented, responsive, predictable and credible trade policy for Nigeria (since 2002) continues to impact negatively on the implementation of the ETLS and CET.
They therefore called on the Federal Ministry of Industry, Trade and Investment (FMITI) to fast track urgent actions towards formulating and providing a trade policy framework for Nigeria.
Meanwhile, Nigeria and other ECOWAS member States have been implementing these trade instruments till date, and there have been testimonies to the effect that these have brought about, among others, increased productivity on the part of the private sector, improved market access for locally produced goods, employment generation, wealth creation, poverty reduction, and sustainable development.
Courtesy of the free circulation of goods within the sub-region piloted by the region’s Protocol on Free Movement of Persons, Goods and Services, attached to the Rights of Residence and Establishment, Nigerian companies are expanding and dominating the sub-regional market.
“In the financial sector for instance, Nigerian banks have literarily taken over the streets of many countries in West Africa. For the telecommunications sector, Nigeria’s local brand, GLO is speedily rolling in to many countries in West Africa.
With regard to trading in goods, Nigerian brands such as UAC, PZ, Cadbury, and Dangote, etc are found along the border routes and on the streets of our neighbouring countries while agro products such as grains and tubers form major imports of countries across West Africa, and particularly, the Sahel area. The movement of these goods give rise to increased employment, higher productivity, revenue to the country as well as foreign currency earnings to the country.”
Participants observed that Nigeria is the greatest beneficiary of the ETLS, both in terms of number of companies and products (representing 39% of the entire benefits), and that the private sector provides this assurance while the presence of Nigerian brands such as PZ, UAC, Cadbury, Dangote products, various Nigerian banks, etc in almost all countries of West Africa courtesy of the ETLS is an eloquent testimony to the fact. To this end therefore, all stakeholders, in particular, the Nigeria Parliament must seek ways of consolidating these benefits and do everything within their legislative powers to copiously protect its continuity and full implementation.
Stakeholders further observed that Nigeria’s involvement in the ETLS has brought about increased productivity on the part of the private sector, improved market access for locally produced goods, employment generation, wealth creation, poverty reduction, and sustainable development.
They, therefore, noted that rather than talk about withdrawing from the ETLS;
efforts should be made to identify and address the challenges, strengthen ETLS implementation as well as putting in place credible and viable domestic economic policies that would foster the realization and maximization of ETLS benefits to Nigeria.
Of particular interest was the call the on the National Assembly to conduct a comprehensive overhaul/review of the ECOWAS Treaty and laws in order to domesticate them and set the foundation for seamless implementation of the ETLS, CET and other trade related protocols.
In that regard they urged the National Assembly to take appropriate measures to be fully involved and possibly provide some level of leadership in the negotiations of all regional and multilateral trade instruments and agreements so as to guarantee proper knowledge and effective implementation thereof.
“Participants called on the National Assembly to request for all trade instruments ratified by the Executive without their express knowledge or involvement with a view to applying legislative powers in accordance with the provisions of the Constitution of the Federal Republic of Nigeria (Section 12, of the 1999 Constitution, as amended),” the communiqué said.
