The Management of Manufacturers Association of Nigeria (MAN) is still standing tall on ECOWAS-EU EPA Agreements due to the implications on the industrial development of Nigeria and consequent socio-economic crisis that may follow in the future, if sign agreement.
Frank Udemba Jacobs, the President, MAN listed out the implications of EPA on Nigeria’s Industrialization Programme in the future, should country go ahead to accept the agreement as follows; EPA will stifle existing manufacturing industries as they will be uncompetitive because cheaper finished products from European countries would flood Nigerian markets. This would lead to the de-industrialization which could have catastrophic implications on employment generation and poverty alleviation in the country; there would be loss of investments; the recent policy of resource-based industrialization which is adopted by the Federal Government that aims at utilizing the country’s abundant natural resources to produce goods that the country needs and which would ensure a sustainable and enduring industrialization would automatically be killed. In fact, companies which have already started investing in production of raw-materials and intermediate products would be forced to close down. Consequently, Nigeria will perpetually continue to be exporters of unprocessed raw-materials and importers of processed goods. Nigeria would then become an extension of EU market. This would equally undermine the Nigerian Industrial Revolution Plan (NIRP).
MAN President pointed out that besides, studies carried out on the effect of EPA on Nigeria revealed negative impact on the economy. It should be borne in mind that Nigeria is in recession and needs every effort to pull it out. Nigeria is mainly a commodity-goods producing country and would trade same in an EPA free trade arrangement. Nigeria has limited capability to produce and export industrial goods to Europe.
Others are Current efforts by Nigerian manufacturers to export non-oil manufactured products would be greatly hampered. The recent surge in the export of non-oil manufactured products which has grown tremendously would be drastically affected. It would negatively affect the informal sector and the SMEs that are currently sustaining a large percentage of our population. Nigeria will incur significant revenue loss through removal of tariff estimated at about US$1.3 trillion. The Agreement will have implications for Nigeria’s other trading partners such as the US and China especially in the context of Most Favoured Nation (MFN).
President Muhammadu Buhari, rightly pointed out in one of his comments that given due consideration to the mismatch of the two regions (Europe-ECOWAS) in terms of technology and manufacturing experience, accepting Economic Partnership Agreement (EPA) in its present form would spell doom on Nigeria’s industrialization programme.
“The truth is our economy is currently challenged. The situation should not be compounded by Government appending its signature or domesticating EPA. Rather, concerted efforts from all stakeholders should be garnered to overcome our current economic challenges. Government should continue to adopt home grown policies and strategies that have the capacity to offer required economic fillip and achieve desired results.”
Jacobs assures President Buhari that the Association’s door always, is open for further engagement and detailed presentation on the views expressed above earlier.
