Economy

‘Settle your problem at home, don’t bring it to African Union’ – Obasanjo tells Nigeria

Published

6 years ago

May 27, 2019

Eric

Former president of Nigeria, Chief Olusegun Obasanjo, on Monday said the African Continental Free Trade Agreement (AfCFTA) Agreement will not be hindered by Nigeria’s reluctance to sign up to the process.

Obasanjo made the remark in Addis Ababa, Ethiopia, during the opening session of the Stakeholders’ Dialogue on Continental Trade and Strengthening the Implementation of the AfCFTA.

The dialogue was organised by the African Union Commission (AUC) and the Coalition for Dialogue on Africa (CoDA).

The former President was reacting to concerns raised by one of the discussants at the event, on the need for stakeholders to look into the implications of AfCFTA without Nigeria, the continent’s biggest economy.

The News Agency of Nigeria reports that Nigeria, Benin and Eritrea are the only countries yet to sign the AfCFTA agreement.

Obasanjo, who recalled that Nigeria took over the processes leading to the AfCFTA agreement from Egypt, wondered why it suddenly halted signing and was not even participating at the session.

He also recalled that Nigeria led the way at ministerial level, with the government ready to be in Kigali, Rwanda, to sign up to the agreement, before the sudden turnabout.

According to him, Nigeria should resolve its domestic intrigues and not bring such to the African Union table.

“It is nobody’s fault if your country cannot resolve its domestic problem.

“If you (Nigeria) is not signing the agreement, it is unfortunate. AfCFTA will go on without Nigeria.

“You will recall that this is the first time, since 1976, that Nigeria is not at the table of a major continental process.

“Nigeria should settle its problem at home and not bring it to the AU,’’ Obasanjo said.

The former President said Nigeria is known to always be on the driver’s seat of continental discussions and agreements, including the AU, ECOWAS and all their agencies.

Obasanjo, who is the chair of the CoDA Board of Directors, said feelers from the AfCFTA remain positive, while teething problems would be addressed in the course of time.

He said the meetings would be extended to other stakeholders, including Africa’s Central Banks, Customs and security agencies.

Obasanjo added that removal of trade barriers does not mean removal of other statutory agencies at various national border posts.

He, however, commended the issuance of visas at the point of entry by some African countries, saying the gesture was a positive step in the right direction toward movement of people across the continent.

The African Continental Free Trade Agreement (AfCFTA) is a trade agreement between 49 African Union member states, with the goal of creating a single market followed by free movement and a single-currency union.

The AfCFTA was signed in Kigali, Rwanda on 21 March 2018. Ratification by 22 countries is required for the agreement to enter into force and the African Continental Free Trade Area to become effective. The agreement will function as an umbrella to which protocols and annexes will be added.

Negotiations continued in 2018 with Phase II, including Competition Policy, Investment and Intellectual Property Rights. A draft shall be submitted for the January 2020 AU Assembly.

Kenya and Ghana were the first countries to deposit the ratification instruments on 10 May 2018 after ratification through their parliaments.

With ratification by the Gambia on 2 April 2019, the threshold of 22 ratifying states for the free trade area to formally exist was reached, though as of 30 April 2019 all the ratifying states submitted their ratification documents to the African Union.

Nigeria has yet to sign the agreement. At over 173 million people, Nigeria is Africa’s most populous country and dwarfs the second most-populous country, Ethiopia, with 100 million people. With a nominal GDP of $376 billion, or around 17% of Africa’s GDP, it is just ahead of South Africa, which makes up the next 16% of Africa’s economy.

Because Nigeria is such a significant country in Africa in terms of its population and its economy, its absence since the initial signing of the agreement until now is particularly conspicuous.

South African President Cyril Ramaphosa underscored this in comments on 12 July 2018, saying “The continent is waiting for Nigeria and South Africa. By trading among ourselves, we are able to retain more resources in the continent’’(South Africa has since signed the agreement).

Some 44 countries initially signed the agreement in 21 March 2018. Nigeria was one of 11 African Union nations to avoid initially signing. At the time, Nigerian President Muhammadu Buhari said that Nigeria couldn’t do anything that would undermine local manufacturers and entrepreneurs.

The Manufacturers’ Association of Nigeria, which represents 3000 Nigerian manufacturers, praised the decision to back out of the agreement. The Nigerian foreign minister tweeted that more domestic consultation that was needed before Nigeria could sign the agreement.
Former president Olusegun Obasanjo said Nigeria’s delay was regrettable. The Nigeria Labour Congress called the agreement a “renewed, extremely dangerous and radioactive neo-liberal policy initiative’’, suggesting increased economic pressure would pressure workers into migration under difficult and unsafe conditions.

Economy

IMF Scores Tinubu’s Economic Reforms Below Pass Mark

Published

3 weeks ago

April 20, 2025

Eric

The International Monetary Fund (IMF) says that Nigeria faces significant uncertainty in its economic outlook despite wide-ranging reforms.

It, however, noted that the gains are yet to benefit all Nigerians with poverty and food insecurity remaining high.

Concluding its 2025 Article IV Consultations with Nigeria’s public policy executives during the week, IMF’s team, led by Axel Schimmelpfennig, its mission chief for Nigeria, acknowledged that Nigeria has taken important steps to stabilize the economy, enhance resilience, and support growth.

The IMF team had met with Minister of Finance and Coordinating Minister of the Economy, Wale Edun, Minister of Agriculture and Food Security, Abubakar Kyari, Central Bank of Nigeria Governor, Yemi Cardoso, senior government and central bank officials, the Ministry of Environment, the private sector, academia, labour unions, and civil society.

Although the IMF representatives said these reforms have put Nigeria in a better position to navigate the external environment, the macroeconomic outlook remains marked by significant uncertainty.

They said that the elevated global risk sentiment and lower oil prices would impact the Nigerian economy.

They, therefore, recommended that macroeconomic policies need to further strengthen buffers and resilience, reduce inflation, and support private sector-led growth.

The final report of the consultations stated: “The Nigerian authorities have taken important steps to stabilize the economy, enhance resilience, and support growth.

‘‘The financing of the fiscal deficit by the central bank has ceased, costly fuel subsidies were removed, and the functioning of the foreign exchange market has improved.

‘‘Gains have yet to benefit all Nigerians as poverty and food insecurity remain high.

‘‘The outlook is marked by significant uncertainty. Elevated global risk sentiment and lower oil prices impact the Nigerian economy.

‘‘The reforms since 2023 have put the Nigerian economy in a better position to navigate this external environment. ‘‘Looking ahead, macroeconomic policies need to further strengthen buffers and resilience, while creating enabling conditions for private sector-led growth.

“The authorities communicated to the mission that they will implement the 2025 budget in a manner that is responsive to the decline in international oil prices. A neutral fiscal stance would support monetary policy to bring down inflation.

‘‘To safeguard key spending priorities, it is imperative that fiscal savings from the fuel subsidy removal are channeled to the budget.

‘‘In particular, adjustments should protect critical, growth-enhancing investment, while accelerating and broadening the delivery of cash transfers under the World Bank-supported program to provide relief to those experiencing food insecurity.

“A tight monetary policy stance is required to firmly guide inflation down. The Monetary Policy Committee’s data-dependent approach has served Nigeria well and will help navigate elevated macroeconomic uncertainty.

‘‘Announcing a disinflation path to serve as an intermediate target can help anchor inflation expectations.”

Economy

My Policy on Fuel Subsidy Removal Yielding Results, Says Tinubu

Published

2 months ago

March 11, 2025

Eric

President Bola Tinubu has declared that his fuel subsidy removal policy is yielding the desired results, pointing out that prices are gradually declining.

The President also asserted that investors are increasingly showing interest in the Nigerian economy, a development he attributed to the removal of fuel subsidies, a policy introduced on 29th May 2023.

Tinubu made these remarks on Monday while inaugurating the National Youth Council at the Presidential Villa, Abuja.

Addressing the youths, Tinubu emphasised that while politicians will always be politicians, true leadership is about fostering development that benefits future generations.

He urged Nigerian youths to take advantage of the opportunities being created by the government, particularly in the ICT sector, to contribute to national development.

Tinubu said: “I have listened to you. Today is not for long speeches. I just want to reassure you that you are the hope of this country. Everything rests on your shoulders. Every decision I have taken is about you and the future.

“When we removed the fuel subsidy, we were securing a future for generations yet unborn. Where is the investment? Where is the infrastructure? When you hear many professionals say they want to ‘JAPA’, it is because prosperity is not widespread at home. If we create opportunities and empower our people, they will have no reason to leave.

“This is your country to develop, build, and prosper in. The government is fully committed to you. Take this seriously. You can criticise politicians all you want, but ultimately, politics is about development and securing a future for the next generation.

“At the beginning, it seemed uncertain, difficult, and even hopeless. It felt like drawing water from a dry well. But today, the economy is turning a corner. Prices are falling, confidence in our economy is improving, and investors are showing interest. Technology is advancing, and you have opportunities before you.”

The President reminded the youths that they have a crucial role in advancing the nation’s development.

“It is all in your hands. My role is to help navigate, push, and implement key programmes to clear the path for you. But it is up to you to seize the moment. Look me in the eye and tell me what you think—whether it is right or wrong—and offer suggestions. We will consider them as long as they contribute to the prosperity of this country.

“I assure you that we will do everything possible to make Nigeria a better place for you, but we cannot do it alone. You represent over 60 per cent of our population. You are the heartbeat of our nation, and I hope you take this opportunity very seriously,” he said.

Economy

Naira Gains over Dollar for Three Straight Days in Parallel FX Market

Published

3 months ago

February 15, 2025

Eric

The Naira recorded three consecutive days of appreciation against the dollar in the parallel foreign exchange market, ending the week on a high note on Friday.

According to Abubakar Alhasan, a Bureau de Change operator in Wuse Zone 4, Abuja, the Naira strengthened to N1,565 per dollar on Friday, up from N1,570 on Thursday.

On a day-to-day basis, the Naira gained N5 against the dollar compared to the N1,570 traded on Thursday.

In the last three days, the Naira has gained N15 against the dollar in the black market.

In contrast, in the official market, the Naira continued to depreciate as of Thursday, according to data from the Central Bank of Nigeria.

The apex bank’s exchange rate data showed that the Naira fell to N1,507.88 per dollar on Thursday from N1,504.30 on Wednesday.

Overall, exchange rate movements across FX markets showed that the Naira ended the week with mixed sentiments of losses and gains against other foreign currencies.