The Sea Empowerment Research Centre (SEREC) has called on the Federal Government to consider the need to diversify its economy to reduce dependence on key exports from countries of the Alliance of Sahel States (AES) if it hopes to benefit from the $3.4 trillion trade in the African Continental Free Trade Area (AfCFTA)

SEREC urged the government through the Nigerian Ports Authority (NPA) to consider the need to explore alternative revenue sources to make up for the loss due to the imposition of 0.5 levy on exports from Nigeria.

The Alliance of Sahel States (ASS), comprising the junta-led nations of Mali, Niger Republic, and Burkina Faso, on Friday slammed a 0.5 percent levy on imported goods from several West African countries, including Nigeria.

The levy applies to all goods imported from outside the three countries, excluding humanitarian aid.

The funds generated are intended to support the AES’s economic and military goals.

The three countries had in 2023 distanced themselves from the Economic Community of West African States (ECOWAS) and formed a security pact

Dr. Eugene Nweke, founder SEREC had explained that the recent duty slammed on exports from Nigeria by Burkina Faso’s government will definitely have significant socio-economic implications for both nations.

Focusing more on the implications to Nigeria economy, Nweke stated that the Socio-Economic Implications on Nigeria include and may not be limited to:

– The duty imposed by Burkina Faso may lead to a decline in Nigerian exports, resulting in revenue losses for businesses and the government.

– The move could destabilize Nigeria’s economy, particularly if other countries follow suit, leading to a decline in foreign exchange earnings. And that the export industry which employs thousands of Nigerians; if allowed to suffer a decline in exports may lead to job losses and increased unemployment.

Dr. Nweke who is also a former President of the Nigerian Association of Government Approved Freight Forwarders (NAGAFF) also noted that the impact of the duty imposed by Burkina Faso on African Continental Free Trade Agreements (AfCFTA), will create a trade barrier, which he said will contradict the principles of AfCFTA, which aims to promote free trade and economic integration among African countries.

“Thus, this development is a major threat to the whole essence of the AfCFTA Implementation regime.

– This move may be seen as a protectionist trip, thus, it will potentially trigger retaliatory measures from Nigeria and other affected countries, which could undermine regional trade and cooperation resulting to a betrayal of the agreement.

-The duty may pose challenges to the effective implementation of AfCFTA, which seeks to create a single, unified African market and continental currency, ” he stated.

He advised the Nigerian government to reconsider the need to diversify its economy which according to him, will reduce dependence on the key exports from Burkina Faso and explore alternative revenue sources to make up.

In his economic advice to the federal government, he said: “Also, the Nigeria government should engage in diplomatic efforts to resolve trade disputes and promote regional cooperation, ensuring the effective implementation of AfCFTA, taking into the consideration the overall benefits, do so as a lead country.

“The Nigerian government should implement policies to enhance export competitiveness, such as improving infrastructure, reducing bureaucracy, and promoting value-added products .

“May I conclude by positing that, the duty imposed by Burkina Faso on Nigerian exports has far-reaching implications for both nations and the AfCFTA. Nigeria should adopt a proactive approach to mitigate the effects and promote regional cooperation, diversification, and export competitiveness.”

It would be recalled that the Managing Director of the Nigerian Ports Authority (NPA), Dr. Abubakar Dantsoho, had urged the trading and investing public to explore the tailor-made simplified export processes and other opportunities now available at the NPA.