By Our Reporter
The Federal Government is soliciting the support of the World Trade Organisation (WTO) in its transmission from fossil oil to a gas-dependent economy.
The government is also requesting the world trade body to assist it in facilitating trade under the African Continental Free Trade Area (AfCFTA ) Agreement in order to make doing business easy.
Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed made the requests when the Director-Generalof the WTO, Dr Ngozi Okonjo Iweala who is on a four-day official visit to the country called on the minister in Abuja on Monday.
The minister said, “We, in Nigeria, want to advocate for transition energy because it is true now that the issue of climate change is upon us. Our gass emissions in Nigeria are very minimal compared to global emissions. We have these assets and we have not tapped them to aid our development.
“We want you to support us and we have it in our agenda in COP 26 to campaign for gas to be classified as transition energy Even if it’s for a limited period of 20yrs. We also want the WTO to support us in looking at how Nigeria can leverage bio-economic resources.
“It is not new; we have been too depended on fossils fuel and crude contributes significantly to the extent that whichever way the market swings to, that’s the situation we will find ourselves and it is unhealthy; and, also to help facilitate trade under the AfcFTA and enhance the ease of doing business.
“We need to strengthen manufacturing, and also get women involved and support Nigeria in driving economic inclusive growth by paying special attention to the contributions of women.”
She commended the WTO DG for commencing her worldwide country tour from Nigeria, stressing that it was a pointer to her preparedness to reciprocate the country’s immense support, which led to her emergence for the top global job.
Responding, Dr Iweala said her visit was to enable her see how WTO can support Nigeria and improve its ability to trade.
She noted that Nigeria’s share of world trade was 0.33%, adding that on logistics of trade “we are 103 out of 167 and generally 19% of African trade.”
The DG, however, said: “But I am looking at it from an advantage side that we have a fantastic opportunity to take advantage of the AfCFTA and be able to expand and one of the objectives is to see how the WTO can help and add value to our primary products, especially withing Africa
“We have a few examples of how we can do that. Nigeria is one of the biggest producers of Sesame seeds and Shea butter in the world but we have been barred form the market of Europe and US for quality issues so we couldn’t export.
“But the WTO has now come up with the International trade center and established cooperative for goods to penetrate more markets and it has ordered 200mtc tones of shea butter and later 500mtc and it has impacted.
“Also we have the joint statement initiative at the WTO to see what rules that can underpin trade for MSMEs and women in trade because we believe reaching them will make a difference in regional and global value chain since most of the population are in informal sector. There is a very fast move in renewable energy.”
According to her, “the area of transition to renewable energy (is here), the world is moving in the direction of renewables; we have to advocate and migrate to other types of activities. Nigeria must think fast on how to join the movement and I support the minister in transiting from fossil fuel but we must advocate and be willing to migrate.
“We have a diversified economy that can actually benefit us if we invest in it, not just in goods, or agriculture, but also services. We have young people doing great in fintech and technology and the WTO is developing rules to underpin e-commerce in a fair and balanced way and also train people to access e-commerce.
“E-commerce is crucial especially with the pandemic and the WTO negotiates rules to make everyone access e-commerce. We hope to work with these international banks to improve world trade. We will work with World Bank, IMF, AfDB and Afreximbank.”
She stated that out of 167 in logistics of trade, Nigeria had 103, adding, “so if we are thinking of how we can improve trade, we must also think of how we can improve logistics from transport to logistics. E-commerce must come with regulations and Nigeria is the leading light.”
“A couple of other areas is that we have the ongoing fisheries negotiations and we aspire to finish the multilateral round of negotiations and it’s time to end it 20 years after. 20yrs is enough because we are talking of the livelihood of men and women in the world,” she added.
On the Covid-19, pandemic, Iweala said “we are active, and proud that Covax facility supplied vaccine to to Nigeria and we need to approach WHO medical products and supplies. There trade restrictions are everywhere and we hope will have zero tariffs on medical products except some in facilitation areas.”
She disclosed that all these decisions would be ratified at the WTO ministerial conference to be held in December, 2021.
“The WTO can help assist specifically and we have joined with IFC INTERNATIONAL FINANCE CORPORATION and Afexim bank to facilitate trade. We are also partnering IFC for women in finance program with a discount”, she added, and commended the minister for clearing Nigeria’s arrears at the WTO from 2019 and cleared for 2020 as well as paid advance for 2021.
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