Don asks FG to prioritise intra-African trade

The Federal Government has been advised not to prioritise investors from other continents over the sustainable development investment that can be achieved through intra-African trade under the African Continental Free Trade Area.

A professor of International Economic Relations at Covenant University, Jonathan Aremu, gave this advice in a paper he presented recently, titled ‘Strengthening the technical capacity of stakeholders towards domesticating quality and sustainable investment into Africa’.

He said government must guard against creating an investment regime that is more favourable to foreigners than already existing bilateral talks to increase trade between African countries.

President Bola Tinubu had restated the country’s readiness for business while urging foreign investors to take advantage of available opportunities and ongoing reforms in the country, including the removal of fuel subsidy and unification of exchange rate.

A recent statement by the President’s Special Adviser on Special Duties, Communications and Strategy, Dele Alake, said the President at the New Global Financing Pact summit held in Paris would be pushing for foreign direct investments in the scheduled meetings with leaders from the United States, France, Switzerland and international finance corporations and institutions that could facilitate direct foreign investments into Nigeria. 

Aremu, who is an ECOWAS Common Investment Market Consultant, explained that with most governments preferring to offer generous incentives and protection to foreign investors, intra-African trade might not be achieved due to burdensome obligations.

He stated, “The government must guard against creating an investment regime that is more favourable to foreign investors by creating more onerous obligations than those that currently exist under the already existing bilateral investment treaties.

“It must provide a suitable, acceptable and effective method for the settlement of investment disputes; and ensure that the provisions which govern intra-Africa investment will lead to an increase in sustainable, intra-African and foreign direct investment flows.”

Aremu said the government must allow for sustainable development investment and programmes that meet the needs of the current generation without compromising the ability of future generations to meet their own needs.

He stressed that criteria must be set to regulate investors’ obligations to comply with the laws of the host states, respect internationally recognised rights, refrain from being complicit in the grave violation of human rights and environmental pollution, adhere to core labour standards and use of child labour, among other sustainable development issues.

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