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Farinto identifies barriers to intra- African trade
The Eyewitness Reporter
Former Acting National President of the Association of Nigerian Licensed Customs Agents, (ANLCA), Kayode Farinto , has identified concealment of information as one of the stumbling blocks to the successful implementation of the Africa Continental Free Trade Area, AfCFTA in Nigeria.
Farinto, who stated this in a paper titled, “AfCFTA: Dismantling Trade Barriers, Navigating Regional Trade”, which he delivered at the 2024 MARAN Annual Maritime Lecture, MAMAL held in Lagos recently ,said that pretending that all was well when it was not true, would be the greatest undoing to Nigeria as a country in maximizing the benefits inherent in the continent-wide trade.
According to him, “Nobody expected a hitch-free take off but we should stop pretending and deceiving all Nigerians as if all is well.
” We are all aware of the controversy surrounding the first shipment under AfCFTA where according to Mr. Segun Olutayo, leader of the AfCFTA Coordination Office in Nigeria, endeavored to window-dress this controversy by saying that receiving Certificate of Origin under AfCFTA is only a preliminary step akin to a starting point and does not necessarily indicate that a shipment has been made.
“It’s high time we stopped this our attitude where we conceal and distort real information to confuse and convince Nigerians that all is well when we know that with speaking out, people can proffer solutions to whatever problem that arises.
“Giving out accurate information is one of the factors that can make AfCFTA a success (through information management).
“Concealing information from the public is not part of good information management and it runs negatively against the Freedom of Information Act.
” There’s nothing wrong with confirming to stakeholders when issues go wrong. All that is needed is allay their fears that whatsoever that is wrong can be corrected.”
Going further, he maintained that if the Africa Continental Free Trade Area must succeed, the Nigeria Customs Service, must play a pivotal role in this ,adding that one of the things that must be done was to ensure that trade was facilitated.
He said, “I watched with keen interest, Nigeria’s participation in the Biachara Africa 2024 Summit in Kigali where Nigeria businesses showcased their offering and was also delighted to hear a committal statement from the Comptroller General of the Nigeria Customs Service, promising to ensure that trade facilitation becomes the focal point of the Service going forward, which has obviously been downplayed before now.
“It is not out of place for NCS to roll out her Standard Operating Procedure, (SOP) for AfCFTA.
“However, I am glad to inform this gathering that the NCS, for once, seems serious about facilitating good trade.
‘ I rely on a recent circular released to her officers to ensure that issues of alerts are not only streamlined but its incessant issuance be addressed where every Deputy Comptrollers in charge of revenue has been given a marching order to ensure compliance by their officers.
” What is only needed to be added is sanctions for non-conformists. If this is achieved, the major monster that can kill the Africa Continental Free Trade Area agreement has been successfully eliminated.”
Insisting that the Nigeria’s maritime sector had not fared well in the area of logistics management, Farinto however blamed it on the nation’s inability to embrace multi-modal transport system, noting that Nigeria’s reliance on road sector alone was a stumbling block and a barrier to free flow of trade.
“The Ministry of Marine and Blue Economy needs to liaise with the Ministry of Trade either on a Private Party Agreement, PPA or taking it as her core responsibility to ensure that our over reliance on road is stopped.
“There is need for rail connectivity between the hinterland and our ports. Barge operation should be employed to reduce the congestion and traffic on road and to save time for the success of the Africa Continental Free Trade Area Agreement“, he said.
Pointing out that non-tariff barriers including technical barriers were very many in Nigeria, Farinto insisted that virtually all federal government regulatory agencies had one fine, levy and other which he said was killing trade.
“Take for example, a regulated item by either SON or NAFDAC must pay many levies or taxes such as import permit, MANCAP, money for examination to be conducted, fees to be paid before labelling rights are granted”, Farinto lamented.
Earlier in his welcome address, the President of the Maritime Reporters’ Association of Nigeria, MARAN, Mr. Godfrey Bivbere acknowledged that AfCFTA represented a groundbreaking initiative by the African Union, designed to create a single market for goods and services, promote free movement across borders and unlock the immense economic potential of the continent.
He however, identified barriers such as inadequate infrastructure, regulatory bottlenecks and operational inefficiencies as hampering the seamless flow of goods across the continent.
He, therefore, submitted that for Nigeria to maximize the benefits of AfCFTA, it must address critical requirements including: Improved Trade Infrastructure -Enhanced Roads, Transit Trailer Parks, and functional scanning facilities at ports; Efficient Procedures – Compliance with Rules of Origin, RoO and streamlined export processes as well as Capacity Building – Training Customs officers and other stakeholders to align with AfCFTA protocols.
Others according to him, include Investment in Maritime Assets: With intra-African freight expected to increase by 28% and maritime demand by 62%, we need significant investments, including the addition of 100 vessels to facilitate transport as well as Leveraging Technology and Innovation to Facilitate Trade.
“As laudable as AfCFTA is, some persons in Nigeria are worried that our lack of infrastructure (mainly energy and road) and inconsistent policy will continue to affect our production level.
“They are concerned that as a result of our low production capacity, our initial gain of shipment outside the country may fizzle out when other African countries with better production environment begin the shipment of their goods; while Nigeria may end up becoming a dumping ground.
“The African Union has reported that intra-African trade currently stands at just 10%, compared to 60% in Europe. With AfCFTA, there are projections to raise this to 20%. For this to happen, we must ensure free and efficient movement of goods across borders through vehicles, railways, ships, and trucks.
“Let us use this platform today to brainstorm on solutions, forge collaborations, and commit to actionable steps that will help dismantle trade barriers and build a robust framework for regional trade”, he concluded.
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NIMASA pledges to priotise safety of dockworkers
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Exclusive: The real reason why Effedua resigned as Rector, MAN, Oron
Funso Olojo
On November 13th, 2024, Commodore(rtd) Duja Effedua, tendered his letter of resignation as the Rector of Maritime Academy of Nigeria(MAN), Oron, to the Minister of Marine and Blue Economy, Adegboyega Oyetola, in a dramatic way that left maritime stakeholders dumbfounded.
They were shocked at Effedua’ s sudden resignation because of several reasons.
Firstly, Effedua still has over one year in his 8 – year tenure .
He was first appointed by the former President Mohammad Buhari in 2017 and subsequently reappointed for a second term in office in September, 2021.
Also, Effedua had run an impactful and effective administration as he repositioned the Nigeria’s apex maritime training institution which he patterned along the international maritime organization(IMO) model for maritime training institutions.
He has also cleaned the institution of its age- long rot, boosted the morale of staff through impressive welfare packages and thrust the institution into the global recognition.
More intriguing was the fact that Effedua was then just appointed by the Minister as a member of the high- powered ministerial committee to drive Nigeria’s reelection bid for the IMO category C seat.
Why then will a government appointee, despite his high performance and efficient service, resign when he still has over a year to complete his tenure, a decision alien to the culture of sit- tight syndrome of government appointees who dig in their feet even against overwhelming allegations of incompetence.
However, our reporter has stumbled on the real reason why the high- performing Rector signed.
Even though, the retired Commodore attributed his sudden decision to “personal reasons” but sources close to the former Rector whispered to our reporter that Effedua resigned because of his opposition to the controversial Nigeria Coast guard bill currently before the National Assembly.
It was alleged that the ministry of Marine and Blue Economy is hell- bent to have the bill sail through the national Assembly.
Even though, it could not be independently confirmed yet why the ministry has such high interest in the passage of the bill( other than the proposed body will domicile under it), despite the overwhelming opposition of the maritime stakeholders, it was however gathered that the Ministry instructed all the heads of the agencies in the industry, to support and buy-in to the ministry’s crusade of getting the bill scale through the national Assembly.
It was gathered that prior to the Public hearing of the bill at the National Assembly which held on December 9th, 2024, the ministry has convened a meeting in November with all the heads of the maritime agencies which include the Nigerian Maritime Administration and Safety Agency(NIMASA), Nigerian Ports Authority ( NPA), National Inland Waterways Authority( NIWA), Nigerian Shippers’ Council and Maritime Academy of Nigeria(MAN), Oron.
At the meeting, the heads of these agencies had allegedly been mandated to support the passage of the bill.
It was further learnt that though most of these heads of the agencies have their reservations against the bill because of its potential to create bad blood among other agencies such as NIWA and NIMASA and create over lapping functions with the Nigerian Navy, but they lacked the will power to voice their opposition for fear of reprisal action from the ministry.
It was further alleged that NIMASA was particularly uneasy with the bill as it is being speculated that the agency may fund the NCG if the bill eventually trasmutes into an Act.
So all of the heads of these agencies alleged swallowed their opposition and grudgingly accepted to support the crusade.
However, sources close to the meeting claimed that it was only Duja Effedua, who allegedly voiced our his opposition to the bill, giving his reasons why the proposed legislation may not be in the best interest of the Nation.
As a Naval officer, though retired, he explained the implications of having another body in the maritime space which may spark off unhealthy rivalry with the Nigerian Navy.
Knowing the consequences of his act of bravery, the ex- Naval officer was said to have later tendered his letter of resignation to the ministry of Marine and Blue Economy.
Though he said his decision was personal, but Effedua alluded to what may befall him if he fails to throw in the towel.
” It is best to leave when the ovation is loudest, not when they ask you to leave” he has told reporters who were pestering him for his reasond shortly after his resignation.
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