Nigerian Government Prioritizes Industrial Development Above Multilateral Agreements, Conventions

Mrs Ahmed

***As Finance Minister Urges ECOWAS To Tailor Policies Towards Industrialization, imports Reduction

By CLEMENT NWOJI, Abuja

Nigerian Government, said Friday that it is disposed to implementing fiscal policies with potentials of protecting the nation’s infant industries in addition to attracting investments in critical sectors of the country’s economy.

Further, it stressed the nation’s commitment to industrial development, advising that ECOWAS Common External Tariff (CET) should be designed to promote regional industrialization in a manner that on the long term reduces dependence on imports.

Nigeria’s minister of finance, Mrs Zainab S. Ahmed, stated these while speaking at the opening session of 4th Meeting of the ECOWAS Finance Ministers on the Consolidation of ECOWAS Customs Union held at the ECOWAS Commission headquarters, Abuja.

The Minister apparently spoke in this direction against the current pressure from African Nations urging Nigeria to endorse the African Continent Free Trade Agreement (AfCFTA), which Nigeria had however insisted on knowing the benefits to the nation.

President Muhammadu Buhari had already set up a committee to study the merits and demerits to enable him either to assent or not.

According to the Minister, “Nigeria will continue to deploy fiscal policies to support or protect emerging industries, encourage investment in critical sectors, and promote local production”.

She explained that it is with a view to
achieving the effective implementation of the Nigeria’s Agricultural Promotion Policy (APP) and the Nigeria Industrial Revolution Plan (NIRP) within the transitional period of 5 years of implementation of the GET (2015-2019).

The Minister said: “Nigeria believes fervently that ECOWAS regional policies such as the CET, the Customs Union and other fiscal policies should aim seriously at achieving economic growth and industrialization for member states, while reducing import dependency.

“Nigeria will continue to deploy fiscal policies to support or protect emerging industries, encourage investment in critical sectors, and promote local production.”

She said that without prejudice to the spirit of regional integration and free trade protocols Nigeria has been in forefront of supporting trade policies.

According to her, Like every developing economy, Nigeria’s vision to industrialize is very strong. Accordingly, we believe ECOWAS Common External Tarrif (CET) should be designed to promote regional industrialization in a manner that on the long term reduces dependence on imports. We will continue to work within ECOWAS to achieve these laudable objectives.

“Nigeria believes fervently that ECOWAS regional policies such as the CET, the Customs Union and other fiscal policies should aim seriously at achieving economic growth and industrialization for member states, while reducing import dependency.”

According to Mrs. Ahmed, “The economies of scale that result from successful integration should serve as catalysts for economic development of the region.

“Nigeria therefore believes West Africa, while desiring integration into the global economy, should diversify its economy through manufacturing, processing of primary products and other forms of economic modernization”.

However, She noted that Nigeria undoubtedly supports a regional common tariff and a customs union for ECOWAS as major steps toward the achievement of the objective for which the ECOWAS itself was established.

“Let me reiterate Nigeria’s unflinching commitment to the success of the ECOWAS project, particularly in the areas of trade liberalization and economic integration. Nigeria’s current economic policies, in several aspects, seek to identify with, and actively participate in the effort to achieve regional economic development through cooperation.

“In this regard, Nigeria effectively commenced the implementation of the ECOWAS CET in April 2015, with additional measures under the ECOWAS approved Supplementary Protection”, the Minister said.

She listed some of the measures taken including “an Import Adjustment Tax (IAT) List which involves additional taxes on 177 Tariff Lines of the CET 2015 2019; A National list consisting of items whose import duty rates have been reviewed downwards to encourage rapid development in strategic sectors of the economy and an import Prohibition List (Trade) applicable only to certain goods originating from Third Countries.

Further, she advocate for more controls on tobacco in the subregion to minimise the health hazards associated with tobacco.

“In particular, we hold the belief that the establishment of a Track and Trace System for Manufactured and imported Tobacco Products represents ECOWAS’ genuine desire to enthrone best practices in tobacco taxation and control the public health hazards of these products”, she said.

On taxation, she said: “The draft regulations on an ECOWAS Tax Treaty Model and Mutual Assistance in Tax Collection can potentially ease tax treaties negotiations among the Member States, eliminate tax evasion/avoidance within the region, encourage tax audit and exchange of tax information as well as enhance regional integration.

“As a matter of fact, these Regulations will also assist to deepen the integration of the region with the global strategies to improve public revenue through the elimination of tax malpractices”.