Ahmed: Countries Must Adhere to Rule-based Trade under AfCTA

The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, yesterday urged African countries, particularly Nigeria’s neighbours to adhere to trade obligations under the African Continental Free Trade Area (AfCTA).

While acknowledging the opportunities presented by the AfCFTA, she said going forward, countries must observe a rule-based trade and do things properly.

She said a situation whereby countries, particularly the Benin Republic would import goods only for them to be dumped and smuggled into Nigeria would no longer be acceptable.

Speaking during a panel session on “The Impact of African Continental Free Trade Area (AfCTA)”, at the opening of the 2019 African Economic Congress (AEC), the minister further justified the decision of the President Muhammadu Buhari- led administration to shut the country’s borders in August as part of measures to curb the activities of smugglers.

Ahmed said though free trade is the way to go, a lot of impetus is still required to make it a success.

She said there must be some sense of national interest in the country’s relationship with other states no matter how much affection it attaches to the Pan-African ideology.

Ahmed, while responding to the rationale for shutting the nation’s borders, stressed that, “we must all observe the rule and not just call on Nigeria alone to observe the rules.”

She said AfCFTA is trying to introduce a rules- based trading system in Africa.

Painting a scenario which led to the action by the federal government, and with specific reference to Benin Republic, she said: “Now the very people who had signed previous agreements with Nigeria on customs cooperation, on the rules that will affect transit of goods- are not observing those obligations.

“So, you are not following to things you have signed to but you want to hold me to the things I have just signed up to. So, what you would then have is that I would sign on to the AfCFTA and you would continue to do these things you are doing to undermine my economysmuggling, dumping - you would continue to do them because I have signed AfCFTA.”

“But you have not recognised the various agreements that we have signed under the Cotonou Agreement. I think it is, that regulates the trade between us and our neighbours. You signed on to them but you are not observing them. But now, you are asking me to observe new rules.”

Continuing, Ahmed said: “I think it’s a very good opportunity for us to remind everybody that all obligations should be adhered to.”