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The benefit of having one’s compatriot at the helm of an international organisation cannot be overemphasised. Nigeria seems to be reaping that harvest. In her first homecoming after emerging as the Director-General of the World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala, advised the Federal Government of Nigeria how the country can leverage on global trade and improve its economy. To achieve the goal, Nigeria has to carry out a comprehensive review of trade restrictions policy and multiple exchange rates regime.
She expressed the willingness of the WTO to assist Nigeria to overcome the hurdles and increase its global share of international trade and boost the economy. However, Nigeria must address the limitations that hitherto impede trade agreements with the international organisations such as WTO. These include the dismantling of the multiple exchange rates regime aimed at protecting local industries. At the moment, Nigeria is ranked low at 103 out of 167 countries in international trade. That means that Nigeria has to focus on how to add more value to its products with the resources and potential at its disposal.
Although Nigeria has 19 per cent share of the African trade volume, and a quarter of Africa’s Gross Domestic Product (GDO), its share in the global trade is abysmally 0.33 per cent. This is far below Nigeria’s share of Africa’s GDP. For Nigeria to play effectively in the global arena and tap the benefits therein, the WTO boss enjoined that it must invest more in agricultural products for export, diversify the economy and create more jobs for Nigerians, especially the youths. Okonjo-Iweala, urged the government to invest in renewable energy rather than depend on fossil fuel because it holds the key to future economic growth.
We, therefore, urge the Federal Government to consider the home truth from the WTO boss. The nation should not miss out in the global trade. We must do whatever is required to be part of the global commerce where we are currently lagging behind. Moreover, global trade has become so important that any country that ignores it does so at its own peril. Interestingly, it is heartwarming that the organisation has given assurance to work with Nigeria to enhance the quality of our products through technical assistance, training and collaborating with other global institutions. It is believed that the collaboration will remove some of the bottlenecks confronting international trade.
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We are confident that under the leadership of Dr. Okonjo-Iweala, Nigeria will work with the organisation and other institutions to increase her trade and improve its economy. Let the government heed her timely advice by transiting from fossil fuel to renewable energy, for that is where the future belongs. In addition, the Central Bank of Nigeria (CBN) should do something urgently regarding the current multiple exchange rates regime and their impact on international trade and commerce.
The WTO and other countries recently complained about Nigeria invoking the article on Balance of Payment, aimed at conserving foreign exchange (fx). The complaint was that Nigeria should not have invoked that provision in international trade agreement. That, it seems, is riling many members of the WTO. This is despite the recent response of the CBN Governor, Godwin Emefiele, that the decision on the trade restriction policy was meant to protect local industries. One of the areas complained about is the CBN’s policy to restrict foreign exchange to dairy companies that refused to align with the backward integration of the government. For instance, the European Union (EU) recently filed complaints about some of the apex bank’s restriction policy before the WTO. However, the CBN Governor assured the international community that Nigeria is open to genuine business from any part of the world.
Let the government resolve all issues that will hamper our full participation in global trade. With Nigeria’s economy struggling to turn the corner after exiting a second recession and other fiscal challenges, all hands must be on deck to ensure that the economy recovers quickly. To do that, one of the ways forward remains the diversification of the economy and improvement of our agricultural products for exports.
