National interest will guide decision on AFCFTA, says Buhari

President Muhammadu Buhari on Wednesday said Nigeria will be guided by ‘‘national interest’’ in taking any decision on the agreement establishing the African Continental Free Trade Area (AfCFTA).

He made the remark while receiving National Council of the Manufacturers Association of Nigeria (MAN) led by its president, Engr Mansur Ahmed, at the State House, Abuja.

The President, in a statement by the Special Adviser on Media and publicity, Femi Adesina, said he is ready to receive the report of a Committee set up to assess the potential costs and impact of signing the agreement establishing the AfCFTA for Nigeria.

He recalled that the Presidential Steering Committee on the AfCFTA Impact and Readiness Assessment Committee was inaugurated on October 22, 2018, with the mandate to assess the extent to which Nigeria was ready to join the agreement, and what the impact of doing so would be.

The Committee was initially given 12 weeks to conclude its assignment, after holding wide consultations with industry groups and stakeholders, including the MAN.

The President told National Council of MAN the AfCFTA is on the agenda for the upcoming AU Summit in Niamey, Niger Republic, in July.

‘‘I don’t think Nigeria has the capacity to effectively supervise and to ensure that our colleagues in AU don’t allow their countries to be used to dump goods on us to the detriment of our young industries and our capacity to utilize foreign exchange for imported goods,’’ he said.

President Buhari also promised to look into the presentation by MAN highlighting issues of concern to the manufacturing sector, namely the AfCFTA, Export Expansion Grant and other incentives, challenges with the 2019 fiscal policy measures, recent increase in NAFDAC charges, the Industrial Development (Income Tax Relief) (Amendment) Act, 2019, among others.

‘‘I assure you that I know the enormity of our problems in terms of population growth rate and teeming young people.

‘‘We need to move very fast, and the government will try and encourage you as very much as possible so that the problem of unemployment and the provision of other services relative to our population and state of development can be tolerated,’’ he said.

Speaking earlier in his remarks, the MAN president outlined some credible policies that have driven the economy forward in the first term of President Buhari.

Commending the Buhari administration for consistent efforts to sustain the growth trajectory anchored on improving the business environment, Engr Ahmed recognised the government’s efforts at improving the Ease of Doing Business Project, fight against corruption, focus on poverty reduction, job creation and inclusive growth as well as the launch of the Economic Recovery and Growth Plan.

He, however, noted that despite the significant progress recorded in the last 4 years, ‘‘it is clear that our economy is still fragile.’’

‘‘With the GDP at 2.0 per cent and below the population growth rate, the clouds are still threatening and the task of driving the economy upwards is still enormous.

‘‘But Your Excellency we are encouraged by the very strong commitment you expressed only last week in your Democracy Day address.

‘‘You did say that in your second term, your administration will do, even more, not only to continue to drive the economy on the path of sustained growth but indeed to create a more inclusive and sustainable economy,’’ the MAN president said.

Speaking with State House correspondents at the end of the meeting, he said the Council of MAN, sought the audience to congratulate President Muhammadu Buhari on his successful re-election and also to share thoughts and views with him on the way the economy should be going forward.

He said “Over the past four years being the first term, we have seen a lot of efforts to redirect the economy and steer it in the direction of positively sustained growth. At the beginning of his first term, the economy was in recession. Efforts were made to turn around the country out of recession in 2017.

“We recognize that the economy is still fragile and a lot more needs to be done in the second term to keep the economy on the path of sustained growth.

“So, we came to share our thoughts on these Matters with Mr. President and also to thank him for his continued support to the manufacturing sector, because, on many occasions, when we raised issues, Mr. President had responded positively, paid keen attention to those issues.

Asked what they were looking for specifically, he said “We need him to strengthen the economic base, particularly in areas such as infrastructure especially power and transport infrastructure.

“As you know the manufacturing sector in particular depends critically on the availability of stable electricity and conducive environment which support growth and continuous investment.

“We have also suggested to Mr. President that in the short run, availability of power be improved by executing the program established by the power industry to ensure that those large organizations that draw large quantum of power draw directly from the National grid rather than from the distribution companies.

“We believe that if that arrangement is made, three things will happen. First, the stranded power that is not able to reach the consumers can then be utilized. This will increase revenue to the power industry and be able to strengthen the manufacturing sector by making power available to those who can access it. The arrangement was that those who can draw up to 2 megawatts of electricity can do so directly from the high tension rather than the distribution network.

On the role of MAN in achieving President’s promise to take 100 million out of poverty, he said “I believe that the manufacturing sector and the SMEs is the critical tool for enhanced youth employment. As you know, the more the manufacturing sector expands, the more it will employ people. Jobs will be sustained.

“Obviously, increasing employment is possible even for 100 million people and above. But you need to right support to the manufacturing sector. Especially when you give incentives for growth to take place. We have drawn attention to the Bill that has been submitted to the President for assent.

“The Industrial Expansion Bill, which l believe if it is assented to will offer tremendous rapid expansion in the industry. It will allow those industries that are already stable to expand rapidly.

“As at now, the provisions is that if you have incentives on your first investment, you don’t have it on your second investment. But the existing investor is in a better position to expand his investment particularly if you are not looking at the large scale investors,” he said.