By Steve Agbota
Nigeria’s export market faces a new hurdle as Burkina Faso imposes a fresh duty, a move that could disrupt trade flows and increase costs for Nigerian exporters, the Sea Empowerment Research Centre (SEREC) has warned.
The head of research at SEREC, Fwdr Eugene Nweke, in a statement, pointed out that the duty slammed on exports from Nigeria by Burkina Faso’s government has significant socio-economic implications for both nations.
He said the socio-economic implications for Nigeria may lead to a decline in Nigerian exports, resulting in revenue losses for businesses and the government.
He said the move could destabilize Nigeria’s economy, particularly if other countries follow suit, leading to a decline in foreign exchange earnings.
“The export industry employs thousands of Nigerians; a decline in exports could lead to job losses and increased unemployment. The impact on the African Continental Free Trade Agreement (AfCFTA) includes, but is not limited to, the duty imposed by Burkina Faso creating a trade barrier, contradicting the principles of AfCFTA, which aims to promote free trade and economic integration among African countries.”
According to him, 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 in 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 said.
However, he urged the Nigerian government to reconsider the need to diversify its economy to reduce dependence on key exports from Burkina Faso and explore alternative revenue sources.
Also, he said the Nigerian government should engage in diplomatic efforts to resolve trade disputes and promote regional cooperation, ensuring the effective implementation of AfCFTA while considering the overall benefits, as Nigeria is 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,” he advised.
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