Nigerian Exporter

Let me start by commending ECOBANK and the Manufacturers’ Association of Nigeria Export Promotion Group for organizing this Forum, of course, with the active collaboration of the African Business Roundtable. I feel honoured to be called upon to Chair this second edition of the Trade Forum with the theme: ‘Fostering Regional Integration – Sharing Experiences to Enhance Sustainable Trade Development.

Needless to remind us that integration, trade and investments are topical and significant issues in any development agenda as to underscore the importance of this gathering. What I will like to focus on however is to ask ourselves what and why we are here? It is always helpful to know the past in order to chart the future.

Before and at attainment of independence in the early sixties, the economies of most countries of the West Africa Sub-region were integrated, and also run by the colonial administration. We have West African Civil Servants in Nigeria, we share the same currency denomination, i.e pound, ditto with the Banking Institution – the British Bank for West Africa (BBWA). All these were important to the facilitation of trade and integration.

With attainment of independence by various countries within the sub-region and attendant nationalistic fervours, the tendency to tear down colonial structures, reminiscent of the independent struggles and desire for self determination were prevalent. Most times these were done without careful considerations or the necessity of not ‘throwing away the baby with the bath water’. Another factor which accelerated the breakdown of regional integration in the sub-region was the incursion of the military into governance. This brought about conflicts and instability, with the Nigerian civil war having a devastating effect on the economy of the region. Since Nigeria was at war, it had to close its borders and being a major player in the economic life of the sub-region, this created a big distortion in trading within the sub-region. As the saying goes, ‘when the elephants fight, the grasses suffer’. These factors stagnated, the integration drive of the sub-region, especially, the economic aspect. While things were falling apart within the Anglophone countries, the Francophone ones, with the help of their colonial master managed to keep together still sharing the same common currency – the CFA, to a certain extent or at least the parity.

With the cessation of civil war in Nigeria, and collaboration of visionary leaders such as Houphny Bougnet of Cote D’Ivoire, General Yakubu Gowon of Nigeria and Eyadema of Togo, the Economic Community of West African States (ECOWAS) was formed. This action has helped tremendously to stem the tide of disintegration of the sub-region.

The main objective for the formation of ECOWAS was for economic integration as the name implies, and we know the central role that banking plays in trading and economic transactions. It was in recognition of this fact that some members of the Lagos Chamber of Commerce, namely Adeyemi Lawson, Gordon Wilson and Henry Fajemirokun, acting under the umbrella of Federation of West Africa Chamber of Commerce floated the idea of establishing a private sector-regional bank.

This led to the establishment of the ECOBANK in 1985 with its first subsidiary commencing operation in Togo in March 1988. Ecobank Nigeria commenced operation in 1989. And as we are witnessing today, the Bank has been alive to its responsibilities of fostering regional economic integration through enhancement of trade and investments.

Looking back now, we discover that we are now trying to rebuild what we tore down. We have lost about 45 years – from the early sixties to date, through lack of foresight and focus among other factors. It is however never too late to revisit these issues, but we should learn from history. I have taken us down memory lane so that we can carefully reflect on our actions and always take decisions based on informed judgements that will be beneficial in the long run to a majority of the populace.

The West African sub-region remains trail blazers in putting in place concrete programs and institutions for accelerating integration objective and we must not relinquish this leadership role in the continent. Programs, projects and institutions that foster this objective must be supported by all stakeholders. Some of these in addition to the two I mentioned earlier (ECOWAS and ECOBANK) are as follows:

The ECOMARINE Seatrade project,
Currency Convergence program – ECO
The West African Gas Pipeline Project,
The West African Power Pool Project
The ECOWAS Trade Liberalization Scheme, etc

I will like to call on our business people in the sub-region to invest in regional economic projects and actively participate in the formulation, implementation and evaluation of these programs and projects. It is in our interest to further such interests and objectives through Private Public Partnerships.

Before I take my seat, I will like to highlight certain issues which are quite important and need to be addressed if we are to realize our integration objectives and enhance trade for sustainable development.

Foremost of these issues is the necessity to address the provision of infrastructures that are fundamental to economic activities. Chiefly among these are the provision of efficient power and energy supplies, transportation system – Road, Rail, Marine and Air; Communication and information technology at affordable cost, above all good water supply system. These all affect the competitiveness of our firms and their products in the global economic arena. No wonder, we find products from the developed / industrialized countries of Europe and the Americas and the emerging economies of Asia / Middle-East flooding and dominating our regional markets to the detriment of our indigenous products. May I point out that undertaking policy reforms in these crucial sectors are quite desirable, but are not enough. There are merely the starting points. For infrastructural development to be sustainable, we must pursue pari-pasu the development of our iron and steel industries. This is quite fundamental because we cannot continue to rely solely on imported iron and steel products for our power generating and distribution industries, our ICT firms; Road, Rail, Ports, Shipping building Industries all rely heavily on steel and allied products, therefore we need to address this issue for us to achieve our short and long term objectives of industrializing our sub-region or indeed our continent.

Secondly, there is a need for reorientation and capacity building of the implementing agencies of trade liberalization Policies, acts, and protocols designed to promote the free flow of goods and services to endure. Chiefly among these agencies are the Customs, Immigration and other Border Control agencies. Our public sector must assist these institutions to do their job well by being compliant to good trade practices and also by educating the operatives to understand how their action or inaction contribute or constitute a hindrance to economic growth and investment drive. It is not enough to blame these agencies for non-performance, rather all hands must be on deck to assist them to perform optimally in line with our integration objectives. For example, if the government of a country has ratified the protocol on free movement of goods and services across the region, it will be wrong to issue counter directives to these agencies to perform otherwise through protectiveness in the name of some ‘national interests’. National Interests should be harmonized and aligned with sub-regional integration objectives in the spirit of the New Partnership for Africa’s Development (NEPAD)

Standards must be harmonized and clearly defined in line with international best practices, but with innovations which are in tandem with African norms, customs and culture.

Finally, Excellencies, distinguished participants and gentlemen / women of the press, I wish to point out that Africa is fortunate and opportune this year with all the goodwill, attention and focus it is receiving from the industrialized world towards its development. Such goodwill should not be frittered away. For this not to happen we need to create implementation agencies to monitor and effectively utilize the opportunities available to our countries, sub-regions and the continent. We need effective vehicles based on Partnerships to make this happen. The African Business Roundtable is a good vehicle that could be utilized to play this role. I therefore call on the business community to join hands with the organization as we promote private sector growth. We need a strong private sector institution to interface with our counterparts in the developed world if we are not to be marginalized or short-changed. The time to act is NOW!

There will be series of very important events coming up in the forthcoming months at which we must present a common front, speak with one voice and pursue our mutual goals for our common interest. The United Nations General Assembly with series of business meetings is scheduled for New York in September. And in December, the World Trade Organizations will be meeting in Hong Kong to advance DOHA trade negotiations. All these platforms will address issues of development, investment and trade which have deep implications for Africa. We therefore need to come together to ensure we derive maximum benefits.

I hope I have stimulated your thinking as you deliberate in this forum, and we look forward to very constructive and useful recommendations that will be of benefit to the economy of the sub-region and indeed Africa.

I welcome you all to this regional Trade Forum, and thank you for your attention.

Dr. Bamanga Tukur, CON