BY COBHAM NSA, ABUJA – The Federal Government will not slack in deploying fiscal policies to shield local industries and promote investments in critical sectors of the nation’s economy.
This is even as Nigeria’s Minister of Finance, Mrs Zainab S. Ahmed says effective control on tobacco and other related products will curtail health hazards currently ravaging the West African sub-region.
Speaking at the opening session of 4th ECOWAS Finance Ministers on the Consolidation of ECOWAS Customs Union meeting in Abuja, Mrs Ahmed said “Nigeria will continue to deploy fiscal policies to support and protect emerging industries.”
She said government was committed to boost investments in critical sectors as well as promote local production, adding that this would be executed through “effective implementation of the country’s Agricultural Promotion Policy (APP) and the Nigeria Industrial Revolution Plan (NIRP) within the transitional period of 5 years of implementation of the GET (2015-2019).”
The Minister said with Nigeria’s leading role in galvanizing support for trade policies within the sub-region, its position would not upset the spirit of regional integration and free trade protocols.
According to her, “like every developing economy, Nigeria’s vision to industrialize is very strong. Accordingly, we believe ECOWAS Common External Tarrif (CET) should be designed to promote regional industrialization in a manner that on the long term reduces dependence on imports.”
Mrs Ahmed, who was quoted in a statement by her Special Assistant on Media and Communications, Paul Ella Abechi, said Nigeria would always work within ECOWAS to achieve its set goals and objectives.
She further stated that ECOWAS regional policies, such as the CET, the Customs Union and other fiscal policies should aim at achieving economic growth and industrialization for member states, while reducing import dependency.
The Minister said the economics of scale occasioned by successful integration must serve as a vehicle for socio-economic development of the region, stressing that Nigeria “believes West Africa, while desiring integration into the global economy, should diversify its economy through manufacturing, processing of primary products and other forms of economic modernization/”
On the support for common regional tariff and Customs union for ECOWAS as major steps in achieving the Commission’s set objectives, Mrs Ahmed said; “Let me reiterate Nigeria’s unflinching commitment to the success of the ECOWAS project, particularly in the areas of trade liberalization and economic integration. Nigeria’s current economic policies, in several aspects, seek to identify with, and actively participate in the effort to achieve regional economic development through cooperation.
“In this regard, Nigeria effectively commenced the implementation of the ECOWAS CET in April 2015, with additional measures under the ECOWAS approved Supplementary Protection.”
She mentioned the Import Adjustment Tax (IAT) List involving extra taxes on 177 Tariff Lines of the CET 2015 2019; A National list comprising items whose import duty rates have been reviewed downwards to encourage rapid development in strategic sectors of the economy; and an import Prohibition List (Trade) applicable only to certain goods originating from Third Countries among the key areas of focus and improvement.
On tobacco control, Mrs Ahmed said; “In particular, we hold the belief that the establishment of a Track and Trace System for Manufactured and imported Tobacco Products represents ECOWAS’ genuine desire to enthrone best practices in tobacco taxation and control the public health hazards of these products.”
The Minister, who restated Nigeria’s obligation to sustainable, functional regional economic integration project aimed at facilitating economic growth and social prosperity for West Africans, pledged support for regulations that would eliminate tax malpractices within the sub-region
“The draft regulations on an ECOWAS Tax Treaty Model and Mutual Assistance in Tax Collection can potentially ease tax treaties negotiations among the Member States, eliminate tax evasion/avoidance within the region, encourage tax audit and exchange of tax information as well as enhance regional integration”, she said.
