THE Manufacturers Association of Nigeria (MAN), has said that Nigeria will incur significant revenue loss through removal of tariff estimated at about $1.3 trillion if the ECOWAS/EU Economic Partnership Agreement (EPA), is signed into agreement.
The President of MAN, Dr. Frank Jacobs in a release said the implications of EPA will stifle existing manufacturing industries as they will be uncompetitive because cheaper finished products from European countries would flood Nigerian markets, adding that, this would lead to the de-industrialization which could have catastrophic implications on employment generation and poverty alleviation in the country and that there would be loss of investments.
‘’The implications of EPA on Nigeria’s industrialization programme is that Nigeria will incur significant revenue loss through removal of tariff estimated at about $1.3 trillion, there would be loss of investments, current efforts by Nigerian manufacturers to export non-oil manufactured products would be greatly hampered. The recent surge in the export of non-oil manufactured products which has grown tremendously would be drastically affected.’’ he said.
According to him, the agreement will have implications for Nigerian’s other trading partners such as the US and China especially in context of Most Favoured Nation (MFN) and would negatively affect the informal sector and the SMEs that are currently sustaining a large percentage of the country’s population.
“The truth is our economy is currently challenged. The situation should not be compounded by government appending its signature or domesticating EPA. Rather, concerted efforts from all stakeholders should be garnered to overcome our current economic challenges. Government should continue to adopt home grown policies and strategies that have the capacity to offer required economic fillip and achieve desired results.