AfCFTA: Nigeria must guard against becoming a dumping ground– Osinbajo

Vice President Yemi Osinbajo has cautioned on the need for Nigeria to be alert against being a dumping ground for goods and services following the signing of the African Continental Free Trade Area (AfCFTA), as Nigeria maintains a very high stake in the African market.

According to him, the agreement which has now opened access for trade across African states could be disadvantageous to Nigeria if it becomes a dumping ground.

Osinbajo made the pronouncement at the opening ceremony of the 12th Chattered Institute of Bankers (CIBN) conference in Abuja on Tuesday.

“Negotiation is still on after the signing of AfCTFA which will focus on investment, competition and intellectual property. However, we must improve infrastructure, expand our manufacturing base and produce cheaper, it is crucial and the banking sector must participate fully to ensure that we are alert and also avert the threat of being a dumping sector.

“The signing of the Africa Continental Free Trade Area will create an avenue for the bankers to offer their services across Africa and export more, in cement and fintech services which accounts for about 50% of the Gross Domestic Product.

“Five priority areas have been identified for the liberalisation of the agreement. They include transportation, communication, tourism, financial services and business services. This is done so that countries will make offers to liberalise these sectors and also agree on regulation policies so that people can drive growth in other African countries,” he added.

Osinbajo further admitted that Nigeria’s population growth will cause a huge fiscal challenge if there is no corresponding growth and development in sectors that will provide jobs and enabling environment for business to thrive.

He said after emerging from recession, growth in macro-economic sector has been advancing but population is growing at around 3% per annum against the Gross Domestic Product which is around 1.94% which calls for action to be able to curb future fiscal challenges.

“We must create jobs, provide an environment for businesses, small and large to create wealth, as well as address the problems of unemployment so that the millions at the bottom of the pyramid can benefit.

“Creating millions of jobs in power and infrastructure is very important. Consumer spending is set to remain stunted which is why government wants to ensure flow of micro-credit and financial inclusion,” Osinbajo said.

The Vice-President also charged the Chartered Institute of Bankers of Nigeria to leverage on the gains of technology in driving key reforms in the banking sector especially in the area of financial id.

Earlier, the President, Chairman of the Chartered Institute of Bankers of Nigeria (CIBN), Uche Olowu, said the theme of the conference tagged “The Future of the Banking Industry – 360” was to brainstorm on the various disruptions which technology has brought to the banking sector with a view of adapting.

He said financial institutions must be ready to provide infrastructure support in the banking industry to provide access to data and create value.

Olowu added that the CIBN which is involved in training professional bankers annually set up the conference to support growth, building capacity, and enlighten its members on emerging trends.