Nigeria’s low intra-African trade needs urgent attention – Mabogunje
Nigeria’s low intra-African trade needs urgent attention – Mabogunje
The former Director-General of the Lagos Chamber of Commerce and Industry, Toki Mabogunje, on Wednesday said Nigeria’s intra-African trade which stands at a meager 14 per cent must be addressed.
Mabogunje who spoke in Lagos at the MSMEs Business Summit underscored the need to revitalise intra-African trade, foster regional cooperation, and leverage Africa’s immense economic potential.
Mabogunje, who currently serves as the country’s Honorary Consul to the United Republic of Tanzania remarked, “The low level of trade between Nigeria and other African countries is deeply troubling. It’s still at 14 per cent.
“We must prioritise initiatives that streamline cross-border commerce, eliminate trade barriers, and forge a more prosperous and interconnected Africa.”
According to data released by the National Bureau of Statistics, Nigeria’s trade with the rest of Africa during the first half of 2023 surged to N1.839 trillion from the N1.306 trillion recorded in the same period in 2022.
Earlier in the year, the Consul General of the People’s Republic of China in Lagos, YAN Yuqing revealed that trade volume between Nigeria and China in the first quarter of 2023 hit close to $5.4bn.
According to Mabogunje the prevailing preference for Western countries in trade, even during export activities is an issue that should be properly addressed.
She said there have not been enough concerted efforts from African nations to invigorate trade among themselves.
She cited critical shortcomings in infrastructure such as roads and railways as significant obstacles to connectivity, thus exacerbating the challenges faced in logistics and transportation.
While acknowledging incremental improvements in the situation, Mabogunje reminisced about past times, recalling, “In earlier years, sending goods to Ghana often required a circuitous route through London before reaching Accra.”
She emphatically called for a streamlined approach to exporting, citing the current difficulties faced by manufacturers, saying that many are deterred from exporting due to the cumbersome process.
Mabogunje praised Ghana’s streamlined export procedures, which have led to a majority of African products in Western markets originating from Ghana.
In contrast, Nigeria often witnesses products being either surreptitiously smuggled out as personal goods or exported in small, costly batches.
She stated, “Our products are of world-class quality, and it’s imperative to simplify the export process.
“Agencies like the Small and Medium Enterprises Development Agency of Nigeria should serve as a one-stop shop, taking on the complexities in partnership with the Nigerian Export Promotion Council.”
Credit: Punch Newspaper
