National President of Manufacturers Association of Nigeria (MAN), Dr Frank Udemba says the association has reservations on the impact of African Continental Free Trade Area (AfCFTA) on the economy.
Udemba made the disclosure in his address at the 30th Annual General Meeting (AGM) of Anambra, Ebonyi and Enugu branches in Awka at the weekend.
The AGM has the theme, “Jobs in Nigeria: Closing the Gaps of Unemployment in A Divergent Labour Market.”
AfCFTA is a trade agreement proposal of the African Union with the objective to create a single continental market for goods and services, with free movement of businesses, persons and investments.
It will pave the way for accelerating the establishment of the Customs Union and expand intra-African trade through better harmonisation, coordination of trade liberalisation, facilitation and instruments across Africa.
Udemba commended President Mohammed Buhari for not signing the agreement yet, adding that there was a need for wider consultation among stakeholders to critically analyse and weigh the possible impacts.
He continued that MAN and the Organised Private Sector were not against the agreement but contended that the National Office for Trade Negotiation (NOTN) did not hold consultation with relevant stakeholders.
“As a concept and in principle, MAN is not against the AfCFTA, our original contention was that NOTN did not undertake adequate consultation with relevant stakeholders.
“Although that is being done now, we still have the big issue of absence of a country-specific study to determine the possible impacts, benefits and downsides of AfCFTA on the Nigerian economy and manufacturing sector in particular.
“MAN shall continue to engage the NOTN and the Federal Government with a view to ensuring that concerns of manufacturers are addressed and we are adequately represented at the negotiations that determine whether or not Nigeria signs-on,’’ he said.
Udemba also called on the governments of Anambra, Ebonyi and Enugu states to create better environment that would engender industrialisation in their domains.
He said infrastructure deficit and harsh regulatory framework were negatively affecting the survival of firms in the state.
“Your Excellencies, it is obvious that your states are not fully industrialised, therefore, efforts should be made to attract investments in the manufacturing sector by providing appropriate infrastructure and other incentives.
“The manufacturing sector has been acknowledged as the highest contributor to job creation, skill development and technology transfer; it is therefore, imperative for state governments to institute more effective consultation mechanism with MAN.
“This will ensure sustenance of the existing manufacturing companies that are currently groaning under the weight of overwhelming infrastructure and regulatory challenges,’’ he said.
The national President applauded the rebound of the country’s economy after recession, acknowledging significant improvement in inflation rate, external reserve, Purchasing Managers Index and increased All Share Index.
Also speaking, Senator Chris Ngige, Minister of Labour and Employment, said the Federal Government was doing its best to provide infrastructure that would encourage business.
Ngige, who was represented Chief Charles Amilo, a chieftain of the All Progressives Congress in Anambra, said works were going on at the second Niger Bridge and roads across the country.
He said the Federal Government through the National Directorate Employment, N-Power and other programmes had created millions of jobs for Nigerians.
On his part, Chief Azubuike Okafor, the outgoing Chairman of the Branch, commended members for their resilience in spite of the operational environment.
Okafor urged governments of the branch states to improve on their ease of doing business in order to enjoy the Internally Generated Revenue benefits accruing from it as obtained in Ogun.
He lamented the high level of smuggling of substandard products into the country, stringent tariff regime and other bottlenecks on international transaction which, he said, were making members to compete unfavourably in the market.