The Manufacturers’ Association of Nigeria (MAN) has expressed concerns over the proposed common external tariff (CET) by the Economic Community of West African States (ECOWAS).
The ECOWAS CET, which is one of the key instruments for achieving regional integration and common market in the region, is aimed at harmonising the different tariffs in the member states. It was first mooted in 2000.
The implications of adopting the ECOWAS CET for member-states include the eradication of export prohibition and import prohibition lists; tariff changes can no longer be unilaterally undertaken by individual countries, including Nigeria as it has to be put before ECOWAS for approval; while levies, waivers and incentives cannot be utilised by member states as investment incentives measures or protection of local industries without reference to the Commission.
While speaking at a sensitisation workshop in Lagos organised by the MAN, Kola Jamodu, president, MAN, said if the proposed CET is adopted by Nigeria as it is currently constituted, it would have huge implications for the Nigerian manufacturers.
“We are of the view that if the CET is adopted as it is without given consideration to MAN position, Nigeria will lose the right to use fiscal policy measures as instruments to attract foreign investments into the major sectors of the economy and would no longer be in a position to use fiscal policy as an effective instrument to protect its fledging manufacturing base, among others.”
Commenting on the ECOWAS levy of 1.5 percent on all imports to be charged, Jamodu, who was represented by Gbadebo Giwa, vice president, MAN, said over 60 percent of collection would come from Nigeria and it would be a burden on manufacturers.
Charles Etuk, director fiscal policy and budget monitoring and evaluation, federal ministry of finance, said the federal government was taking into consideration the concerns of the manufacturers in the negotiations with ECOWAS.
first appeared on businessdayonline.com
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