Strategically, the priority of economic policy is for structural transformation to diversify and modernize the economy, accelerate growth, enhance economic welfare and increase job opportunities for Nigerians. These reforms are geared to improve efficiency, productivity and competitiveness of the Nigerian economy.
Patience is required for the positive yields from corrective reforms to serious and longstanding economic and trade policy anomalies. Despite the effects of policy lag, the good news is that economy is responding positively. From a post-recession growth rate of 1.5% in 2017, the economy is estimated to grow at 2.5% and better in 2018. Inflation is on a downward trend. In the 2017 World Bank Report on the Ease of Doing Business ranking, the economy was moved up 24 places. Nigeria was ranked amongst the Top 10 Reformers in the global economy. Positive FDI flow has improved and confidence has returned to the business community.
Trade policy and accompanying negotiations are key to sustaining the economic upturn, recovery and growth. These are areas where the FGN has taken significant steps forward. The Government has re-organized and revamped Nigerian Trade Policy. Using trade policy and negotiations, Nigeria is taking concrete steps not only to maximize its trade and economic potential, but also to correct and re-balance longstanding economic anomalies in Nigeria’s trading relationships. The goal is to update and modernize and also, to forge stronger bilateral, regional, continental and global trade relationships. A major step forward to actualize these objectives was the decision by the Federal Executive Council to establish the Nigerian Office for Trade Negotiations (NOTN) in May 2017.
In accordance with the mandate from the Government, the NOTN will lead all of Nigeria’s trade negotiations and, in coordination, with the Nigerian Investment Promotion Commission (NIPC), unify Nigeria’s trade and investment negotiating policy framework. In unifying trade and investment negotiations, the objective would be to create value chains that connect regionally and globally, bolted into Nigerian producers of goods, service providers and industry.
To this end, a key objective is growing the domestic market and also connecting it, profitably, to regional, continental and global markets. Critically, the NOTN has been mandated to establish rules-based safeguards to protect the Nigerian economy from unfair and injurious practices from trading partners. This process is underway. The greater the exposure, the greater the risks for which rules-based safeguards should be em-placed. In using trade, investment and technology as engines for growth, Nigeria shall remain committed to international cooperation, regionally, continentally and multilaterally.
As we sustain Nigeria’s leadership, multilaterally, at the WTO, the Economic Community of West African States (ECOWAS) and the African Continental Free Trade Area (AfCFTA), on the threshold of establishment, shall be at the center of Nigeria’s economic operations. The foundation of Nigeria’s welfare and prosperity are inextricably connected to ECOWAS and the AfCFTA. As stated by President Buhari, at the 30th Assembly of African Union (AU) Heads of State and Government in Addis Ababa, Ethiopia, on 28th January, this year: In a rapidly changing global economy, with much uncertainty we believe that the establishment of a Continental Free Trade Area would provide Africa with tremendous opportunity to achieve significant growth driven by intra-Africa trade.
As the Number One economy in Africa, Nigeria is acutely aware of its obligation for leadership. We shall do what is required to grow the Nigerian economy and contribute to mutually profitable business relationships, and prosperity in a rules-based global economy. In doing so, we shall employ trade, investment, technology and the abundant intellectual property of creative Nigerians to grow the economy and enhance welfare. This report is an invitation to Nigeria’s trading partners and businesses to join hands with the Government in the reconstruction, modernization and growth of the Nigerian economy.
I am sure that readers of this report will find elements for engagement in the Nigerian economy. The trade statistics illuminate the opportunities for engagement, re-balancing and expansion of Nigeria’s trading relationships. Most importantly, I recommend this report to all readers and subscribers as the reference point on Nigeria trade policy
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