International trade contribution yet to be captured in country's GDP - Centre
The Centre for the Promotion of Private Enterprise (CPPE) says contribution of international trade and entire ecosystem yet to be adequately captured in the country's Gross Domestic Product (GDP) data.
The CPPE Chief Executive Officer, Dr Muda Yusuf, said this at the Maritime Reporters Association of Nigeria (MARAN) breakfast meeting held on Wednesday in Lagos.
The meeting had the theme,' Trade Facilitation and President Tinubu Economic Agenda: Matters Arising'.
``As a country we are yet to appreciate the full significance of trade and the international trade ecosystem as leverage for economic transformation.
``This perhaps is why trade issues have not attracted the level of attention commensurate to its contribution to the economy.
``The trade sector accounts for 16 per cent of our GDP in 2023 which amounts to over N27 trillion. But this data reflects largely domestic trade – that is wholesale and retail trade. This is what the maritime sector or the blue economy represents,'' he said.
Yusuf hoped that as the GDP was rebased, this grave shortcoming in the country's economic data would be corrected.
``What we have in the NBS data is water transport. But the maritime sector or blue economy is beyond just water transportation. Water transport for instance contributed a mere N12.6 billion in 2023, which was 0.01per cent of GDP.
``This certainly cannot be what the maritime sector contributed in the whole of 2023. And this has been the trend over the years. The maritime sector handles over 95 per cent of our international merchandise trade.
``The value of trade in 2023 was N71.9 trillion in 2023, with import accounting for N36 trillion and export accounting for another N36 trillion,'' he said.
Yusuf added that the concept of trade facilitation was essentially about ensuring minimal impediments and costs in the international trade process, whether import or export.
He noted that the conversation about trade facilitation should therefore be about costs such as corruption, levies and taxes, shipping, demurrage, storage and others could be removed.
He said that to achieve this, the Nigeria Customs Service had a role to play, adding that the recently launched Time Release Study (TRS) would help determine areas of delays and bottlenecks in the cargo clearance process.
He said that the Authorised Economic Operators (AEO) which incentivise and reward compliance in the cargo declaration processes would pave way for speedy release of cargo to compliant operators and also boost trade.
Also, Executive Secretary, Nigerian Shippers Council (NSC), Mr Pius Akutah, said the council would continue to promote and support establishment of port and transport infrastructure in order to facilitate both domestic and international trade.
Akutah, represented by Mrs Ogbonnaya Austina, an Assistant Director of Consumer Affairs of the Council, added that the topic chosen align with the Federal Government Renewed Hope Agenda to facilitate trade and bring prosperity to Nigeria.
``The President unbundling of the Federal Ministry of Transportation into ministry of transportation and ministry of marin and blue economy is for effective service delivery and expansion of the revenue base of the economy.
``We assure MARAN that the council will continue to partner on facilitate trade and other related activities,'' he said.
Also, Mr Alban Igwe a member of the Importers Association of Nigeria (IMAN) of the United Nations Advisory Group on Trade and Transport Locations, emphasised the strategic importance of trade facilitation for Nigeria’s economic recovery.
He said that trade facilitation had to do with simplification, standardisation, and harmonisation of procedures and associated information flows required to move goods from seller to buyer and to make payment.
Earlier, Mr Godfrey Bivbere, MARAN President, noted that the association was concerned that while Nigeria boast of very large port system with huge import inflow, a sizeable chunk of this cargo was diverted to neighbouring ports.
Bivbere added that this was owing to their efficient services; while the same cargo find their way back to Nigeria, often via smuggling.
``It is equally of note that whereas, President Tinubu’s administration has drawn up a purposeful recovery blueprint for the economy, some of the administration’s policy direction appeared to have assumed too combative posturing.
``This comes with an inevitable backlashes resulting in observed disruption in the fiscal and macroeconomic system; while also causing major distortions in the market.
``MARAN advises that the desire to rejig the national revenue system and jumpstart critical fiscal measures should not be compressed into a too tight short term template because of its disruptive reactions.
``A balancing must be sought, especially in view of the fact that the nation export base is still very weak, making us largely import dependent,'' he said.
The MARAN president said that the best approach was if government make the genuine effort at reducing its alleged huge spending and administrative overhead costs.
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