1. Slide 1: Title
Title: Non-Tariff Barriers to Trade in West Africa: The Nigerian Perspective
Subtitle: Overcoming Trade Challenges
Slide 2: Introduction
Start with a map of West Africa, highlighting Nigeria.
Explain the importance of trade in the region.
Economic Impact: In the years leading up to 2021, intra-ECOWAS trade accounted for a
significant portion of the region's total trade. For instance, in 2019, intra-ECOWAS
exports amounted to approximately 12% of the region's total exports, demonstrating
the substantial economic impact of regional trade.
Market Size: The ECOWAS region boasts a population of over 400 million people,
representing a sizable consumer market. The sheer size of this market provides a
tremendous opportunity for businesses to expand and generate revenue.
Trade Diversification: Trade within ECOWAS has helped member states diversify their
export markets, reducing their dependency on a single market and enhancing economic
resilience.
Infrastructure Development: Member states have invested in infrastructure to facilitate
trade, including transportation networks, border posts, and customs procedures, which
have improved trade efficiency and connectivity within the region.
Job Creation: Increased trade has contributed to job creation as businesses expand and
require additional labor, thereby reducing unemployment rates.
West Africa is a diverse and vibrant economic zone with a growing population and
significant trade potential.
2. Introduce the concept of non-tariff barriers (NTBs) as obstacles to smooth trade.
These are regulations, procedures, and practices that impede trade without involving
tariffs or taxes.
Slide 3: What are Non-Tariff Barriers (NTBs)?
Non-Tariff Barriers (NTBs) are regulatory and administrative obstacles to international trade that go
beyond tariffs (taxes on imports and exports). They encompass diverse measures like product standards,
customs procedures, import/export restrictions, and bureaucratic red tape. NTBs can impact trade by
increasing costs and causing delays. Addressing NTBs is essential in trade negotiations and agreements
to promote smoother international commerce while respecting legitimate regulatory goals like safety and
health.
Define NTBs as trade barriers that are not taxes or duties.
Unlike tariffs, NTBs don't involve direct fees but create hindrances.
Examples: customs delays, complex regulations, quotas, and technical standards.
Customs delays at border checkpoints can cause goods to spoil or incur extra costs, while
complex regulations may confuse traders.
3. Slide 4: NTBs in Nigeria
List common NTBs faced by traders in Nigeria.
Customs bureaucracy: Lengthy paperwork, inspections, and clearance processes.
4. Roadblocks: Unauthorized checkpoints and extortion by security forces.
Inconsistent regulations: Different states may have varying rules and fees.
5. Product standards: Meeting varying quality and safety standards can be challenging.
Provide examples for each NTB:
For customs bureaucracy, explain how paperwork can take weeks to clear.
Share a real-life story of a truck delayed at a roadblock.
Explain how different states' regulations can lead to confusion.
Discuss the challenges of conforming to varying product standards.
Slide 5: Impact on Trade
Use visuals to illustrate trade disruptions caused by NTBs (e.g., a broken bridge blocking a trade
route).
6. Explain how NTBs slow down trade:
Delays result in higher transportation costs and, sometimes, goods spoilage.
Uncertainty discourages investment and trade.
Discuss how NTBs hinder economic growth:
Reduced trade means less economic activity and fewer job opportunities.
Slide 6: Addressing NTBs
Show Nigeria's flag next to icons representing solutions.
7. Discuss measures taken by Nigeria to address NTBs, such as simplifying regulations, improving
infrastructure, and harmonizing standards.
Regulatory simplification: Describe efforts to streamline processes and reduce red tape.
Trade Facilitation Portal: Nigeria has launched the Nigeria Single Window Trade
Portal, an online platform that streamlines trade-related processes, reduces
paperwork, and simplifies customs procedures. It allows businesses to submit
trade documents electronically, reducing the time and cost of compliance.
Automated System for Customs Data (ASYCUDA): Nigeria implemented
ASYCUDA, an automated customs management system that improves
transparency and efficiency in customs operations. This system helps reduce
delays and corruption at ports.
Infrastructure improvement: Explain projects aimed at road and border post upgrades.
Port Infrastructure: Nigeria has invested in upgrading its port infrastructure,
including the Lagos Port Complex and Tin Can Island Port in Lagos, to enhance
the efficiency of cargo handling and reduce congestion. For instance, the
rehabilitation of the Apapa and Tin Can Island ports in Lagos has led to increased
efficiency in goods handling and reduced congestion.
Road and Transportation Networks: Improvements in road networks and
transportation systems have been made to facilitate the movement of goods
within the country and across borders.
Harmonization of standards: Discuss initiatives to align Nigerian product standards with
international norms and those of neighboring countries.
Standards Organization of Nigeria (SON): Nigeria has worked with SON to
harmonize product standards with international best practices. This alignment
reduces discrepancies in quality and safety standards, making it easier for
Nigerian products to meet export requirements.
Regional and International Standards: Nigeria participates in regional
organizations like ECOWAS, which promotes regional harmonization of
standards. Additionally, Nigeria adheres to international standards and
agreements, such as those set by the World Trade Organization (WTO) and the
Codex Alimentarius Commission for food safety.
1. Digitalization and Trade Facilitation:
National Trade Platform: Nigeria has initiated the development of a National
Trade Platform (NTP) to further digitalize trade processes and enhance
transparency and efficiency in customs and trade-related procedures.
8. e-Customs and Risk Management Systems: Implementation of electronic
customs systems and risk management tools has improved the speed and
accuracy of customs clearance, reducing the scope for arbitrary delays and NTBs.
2. Engagement in Trade Agreements: Nigeria's participation in regional trade
agreements like the ECOWAS Trade Liberalization Scheme (ETLS) and the African
Continental Free Trade Area (AfCFTA) fosters cooperation with neighboring countries,
aiming to reduce NTBs and promote smoother trade.
Slide 7: Conclusion
Summarize key points.
Emphasize Nigeria's commitment to removing NTBs for smoother intra-regional trade:
Highlight specific policies or reforms that demonstrate this commitment.
AfCFTA Focus: Establishment of the National Action Committee on AfCFTA to
coordinate efforts towards removing trade barriers within Africa.
PEBEC Initiatives: Implementation of reforms by the Presidential Enabling Business
Environment Council (PEBEC) to simplify trade processes and reduce bureaucracy.
Nigerian Single Window (NSW): Deployment of the NSW digital platform to
streamline customs and trade-related processes, enhancing transparency and efficiency.
Trade Facilitation Committees: Formation of committees like the National Trade
Facilitation Committee (NTFC) to encourage multi-stakeholder collaboration in
identifying and eliminating NTBs.
Customs Modernization: Modernization efforts, including the Pre-Arrival Assessment
Report (PAAR) system, aimed at reducing customs clearance times and improving
transparency.
Infrastructure Investment: Significant investment in infrastructure, especially in ports
and transportation networks, to enhance connectivity and trade flow.
Harmonization of Standards: Active participation in regional harmonization efforts
within ECOWAS to reduce technical barriers to trade.
Capacity Building: Investment in capacity-building programs for customs officials and
trade facilitation experts to enhance competence.
Encourage collaboration among West African countries to create a more trade-friendly
environment:
Mention regional efforts and organizations, such as ECOWAS, that are working toward
NTB reduction.
ECOWAS (Economic Community of West African States):
Implements the ETLS to eliminate trade barriers within West Africa.
9. Operates a trade facilitation program focusing on customs simplification and
infrastructure improvement.
African Continental Free Trade Area (AfCFTA):
Aims to create a single market in Africa and actively works on NTB reduction.
Focuses on customs delays, administrative bottlenecks, and other NTBs to
promote intra-African trade.
COMESA (Common Market for Eastern and Southern Africa):
Has a mechanism for reporting and addressing NTBs among member states.
Promotes collaborative resolution of trade-related issues.
SADC (Southern African Development Community):
Develops trade facilitation programs targeting NTB reduction and customs
improvement.
Enhances trade infrastructure and processes within southern Africa.
EAC (East African Community):
Works on eliminating NTBs to create a seamless trade environment.
Initiatives include the removal of roadblocks and simplification of customs
procedures.
ASEAN (Association of Southeast Asian Nations):
Addresses NTBs through agreements like ATIGA, focusing on standard
harmonization and customs streamlining.
Promotes smoother trade within Southeast Asia.
GCC (Gulf Cooperation Council):
Focuses on NTB reduction within GCC member states.
Targets customs clearance processes and technical regulations to facilitate intra-
GCC trade.
Stress the importance of collective action in overcoming trade challenges in the region.
Harmonization of Regulations: Collective action allows for the alignment of trade
regulations and standards, reducing complexity for businesses.
NTB Reduction: Working together helps identify and eliminate common Non-Tariff
Barriers (NTBs), streamlining trade and lowering costs.
Infrastructure Development: Regional cooperation facilitates investment in critical
trade infrastructure, enhancing efficiency and connectivity.
Capacity Building: Collective efforts improve the skills and knowledge of customs
officials, regulatory bodies, and businesses involved in trade.
Advocacy and Negotiation Power: A unified region has stronger negotiating leverage
in international trade agreements, benefiting member states.
Economic Resilience: Cooperation ensures mutual support during economic
challenges, enhancing overall resilience.
10. Market Expansion: Reduced barriers create a larger, more attractive market, attracting
investment and job creation.
Conflict Prevention: Economic cooperation fosters stability, reducing the risk of
conflicts that disrupt trade.
Resource Pooling: Collective action allows countries to pool resources and expertise to
address global challenges.
Sustainable Development: Regional cooperation promotes sustainable practices,
benefiting long-term trade and growth.