Why manufacturers delayed signing of AfCTA agreement by Buhari- MAN president

Memoye Oghu

Nigerian businesses, under the aegis of Manufacturers Association of Nigeria (MAN), were responsible for President Muhammadu Buhari’s delay in signing the Africa Continental Free Trade Agreement (AfCFTA).

The AFCFTA is a pact to facilitate trade among African countries passed last October by the African Union (AU) and ratified last March by all African countries except Nigeria and one other country.

President Buhari had stated that he withheld his signature to the agreement because of the need for wider consultations and to study the full implications of the agreement on the economy to avoid turning Nigeria into a dumping ground for cheap and fake goods from other African countries to the detriment of local manufacturers.

However, the President of the Manufacturers Association of Nigeria (MAN), Engr. Mansur Ahmed, said the association, more than any other group or individual, necessitated the delay because of fear of what taking a hasty decision on the matter could have on the nation’s economy, especially as it affects the manufacturing sector.

While speaking in Port Harcourt on Wednesday during the 35th Annual General Meeting/Public lecture of the Rivers/Bayelsa states branch of the Association, Mansur said the president withheld his assent to the pact based on the Association’s advice that the government shouldn’t be in a hurry to sign the document without comprehending its full implications on the country.

He said that after a detailed study of the agreement and its implications on the economy and the manufacturing sector in particular were taken, the President was advised accordingly and he did the needful by appending his signature to the continental agreement.

He said: “As you are already aware, President Muhammadu Buhari signed the Agreement earlier this week in Niamey, Niger Republic.

“You would all recall that in March 2018, when the African Union Commission invited the Head of States and Governments to sign the AfCFTA, our Association insisted that our Government should first undertake extensive consultation with all key stakeholders in the economy

and carry out necessary empirical studies to assess the potential impact on the economy and especially the Manufacturing sector with a view to identifying not only the opportunities but also the risks that will arise from the AfCFTA.

“This, we believe is necessary to determine the policies and strategies that must be put in place to mitigate the risks and exploit the opportunities. I am encouraged to report that the Federal Government did carry out an all-inclusive nationwide consultation and just like MAN, conducted a country-specific study on the potential impact of AfCFTA.

“The Government set up a Presidential Steering Committee on Impact and Readiness Assessment of the AfCFTA. MAN actively participated at the Steering Committee level as well as the Technical Working Group.

It was based on the outcome of these processes that the President appended his signature at the just concluded Extra-ordinary Session of the African Union.”

Enumerating the efforts of his executive in the last one year, he added that “the profile of MAN has risen in recent times, so also with her responsibilities within the sub-region and the continent.

The ECOWAS Commission and the African Union have saddled the Association with the responsibility of reviving the Federation of West African Manufacturers Association (FEWAMA) and establishing the African Manufacturers Association (AMA) respectively.”

While speaking to newsmen shortly after the event, Engr. Ahmed, a former Managing Director of the Port Harcourt Petroleum Refining Company Limited, a subsidiary of the Nigeria National Petroleum Company (NNPC), advised that the gains of the African free trade agreement should not be quantified in terms of money but quick returns in investments.

“The first thing to note is that every producer of goods for sale wants to take those goods to the market, the bigger the market, the greater the chances of making money.

So, if we are moving from a market of under 200 million people in Nigeria to a market of 1.32 billion people across Africa, it must means that the opportunities for growth is very high.

“I think it’s not how much money but how quick you can grow your business. That’s why we think that this African Trade Agreement is a good opportunity for us.

The advantage is on our side because we’re bigger. We’re the biggest economy in the continent,” he said.

In his welcome address, Senator Adawari Pepple, the Rivers/Bayelsa states branch chairman of the association, thanked the states and federal governments for their excellent relationship with the association, even as he pointed out that, “Manufacturing plays an irreplaceable role in driving growth and economic development.

Nigeria manufacturing continues to be heavily dominated by resource-processing sectors that are capital and energy intensive.”

The one term former Senator further suggested ways on how to improve the economies of Rivers and Bayelsa states.

He said: “What could be done to save the economy of Port Harcourt and indeed, Rivers State, one of which, as a matter of urgency is to set up a cluster whereby manufacturers will be there.

And in that clusters, we shall have incubators, Incubators to be able to assist the upcoming businesses.

“The experiences that we’ve learnt in the process of our growth will be passed on to those that we are incubating. Our idea is that, that cluster, apart from the idea of providing basic infrastructure like roads, the government ma any fund because we are aware that the African Development Bank is ready to fund such a programme.”

The Guest Speaker at the event, Engr. Reginald Odiah, who is also the Chairman/Managing Director of Bennett Industries Ltd and a staunch member of the Association, harped on the need for the government to focus on the manufacturing sector in order to grow the economy.

Highlight of the event was the presentation of awards to distinguished members of the association as well as a made in Nigeria exhibition.