WTO members kick against Nigeria’s import prohibition list, new import duties

By Franklin Alli

MEMBER countries of World Trade Organization (WTO) have expressed opposition to Nigeria’s import prohibition list and local content requirement in the oil and gas sector.

In addition to expressing concern about the forex restrictions placed on 41 items by the Central Bank of Nigeria (CBN), they also urged Nigeria to eliminate its numerous additional duties and charges on imports. These were the highlights of WTO’s fifth review of the Trade Policies and Practices of Nigeria.

The review  recently took place at the WTO’s headquarters in Geneva and was attended by a Nigerian delegation led by Ambassador Chiedu Osakwe, Trade Adviser to the Federal Minister of Trade, Industry and Investment.

Speaking at the end of the review session, Chairperson of  WTO’s Trade Policy Review, Ambassador Juan Carlos Gonzalez of Colombia, said: “This fifth Trade Policy Review has offered a very useful opportunity for members to deepen their understanding of the trade policies and practices of Nigeria, and to collectively appreciate the challenges it currently faces in sustaining and improving its economic prosperity.

“Members welcomed Nigeria’s Economic Recovery and Growth Plan for 2017-2020, which aims at sustained inclusive growth through a structural transformation and diversification of the economy. “In particular, they appreciated the steps taken to develop the manufacturing sector and the digital economy, especially e-commerce, with a view to speeding up the economic recovery process.

“Members commended Nigeria on its active participation in the WTO, for having ratified the WTO Trade Facilitation Agreement (TFA) and for having accepted the Protocol amending the TRIPS Agreement. “Members welcomed Nigeria’s recent notification of categories B and C measures under the TFA, but called upon the country to fully meet its notification commitments, mainly in the various areas where they remained outstanding, including TBT and SPS.

“Members noted that Nigeria has largely aligned its tariff with the ECOWAS common external tariff since 2015, albeit with most of the flexibilities offered by the community’s provisions. They encouraged Nigeria to improve the predictability of its tariff regime by increasing its binding coverage and by lowering its high bound rates. Nigeria was also urged to eliminate its numerous additional duties and charges on imports.

“Members called upon Nigeria to phase out its long standing import prohibition lists and local content requirements in the oil sector, which are considered incompatible with WTO rules.  They expressed concerns about Nigeria’s ban on 41 categories of items for which importers are not allowed access to foreign exchange from the Central Bank.”

Several delegations enquired about the standardization process in Nigeria and about the operational procedures and processing time for issuing import permits and licences for certain products. Although Nigeria has taken steps to automate its customs procedures, concerns were raised about its burdensome customs procedures and erratic customs valuation.

 

 

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