The Director General of
West African Institute for Financial and Economic Management (WAIFEM),
Professor Akpan Ekpo has said on-going trade tension between the United States
and China, if allowed to continue, would affect Nigeria negatively.
The WAIFEM boss said this
in an interview with THISDAY, on the sideline of the ongoing World
Bank/International Monetary Fund (IMF) Spring Meetings in Washington DC.
The US recently announced a
range of tariffs on Chinese goods, claiming that China was stealing US
Intellectual property. Thereafter, China responded with its own tariffs on US
goods within hours. The moves followed US tariffs that were imposed earlier
this year on Chinese steel and aluminium, which also prompted a response from
China.
But speaking on the
development, Ekpo said it clearly has implication for trade in Nigeria.
He explained: "We know
that our major export is oil and we import almost everything from China. So, if
Chinese had to pay more to trade with the US, they will pass it on to us.
"So, Chinese goods in
Nigeria may also go up and may result into what we partly call imported
inflation."
Owing to this, Ekpo said
there was need for the federal government to continue to push for the
diversification of the economy.
He added: "We must
industrialise to fight what is happening between the US and China. We cannot
continue to depend on the export of crude oil.
"We import virtually
everything and don't add value to anything. Granted we don't have to
manufacture the entire things we need, we can add value to some of our produce.
"So, from what is
happening between the US and China, we should start to strategise on how to
deal with this matter because Donald Trump is taking it very serious and same
thing with China."
According to the WAIFEM
boss, what the US president did in terms of the trade tension "was to
challenge liberalism."
"For him, there is no
longer free trade. Each nation should determine its own fate. But nobody wins a
trade war. And no US President has done negotiation without putting the US
first. When you are negotiating a trade deal, you must put your country first.
"But in my view, Trump
has taken on a wrong country by challenging China, which is an emerging world
power - if not world power.
"Most of the important
Chinese imports like vehicles, come from the US; so, the US will not win that
war and China too will not win the war," he added.
Responding to a question on
the fact that Nigeria opted out of the recently signed Continental Free Trade
Area (CFTA) by some African political leaders, Ekpo said.
"The CFTA, to me, I
had thought that by the time Federal Executive Council (FEC) approved it, they
had done wide consultation.
"So, I think President
Muhammadu Buhari is not saying he will not be part of it. I think, he is
playing to the fact that the labour leaders and Manufacturers Association of
Nigeria (MAN) said they were not consulted.
"So, he wants to hear
their views. But, let me tell you, the African leaders are jokers. They have
signed many of those things and it never translated into anything.
"But if it is done
successfully, it will be a large market to negotiate with rest of the world.
What Nigeria should have done was what South Africa did - attend the signing
ceremony, support them, but you won't sign.
"As Africa's largest
economy, you should have supported and then go back and sign the main
document."
He explained further:
"But I suspect that going forward, there may be a way out of It because
Nigeria is planning to have the headquarters, which should have created a lot
of jobs for our people.
"So, let them consult
properly and let MAN tell the government what it wants because you have to put
down conditions.
"That is what China
does. China dictates what it wants to the world."
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