₦airaland Forum

jomoh:
The only countries winning in this agreement are the countries with stable electricity and low Labour cost. South Africa is also a big winner in the deal.


Nigeria with the biggest market is surely the highest looser. We don’t produce anything worthy of export and the little we do is not yet enough for our population let alone for export.

In the short term:

The masses will enjoy with low prices and quality products from other countries. The country The country won’t loose and won’t gain

In the medium term:

The masses Will start feeling the effect of it when they find out all they work for are being taken away to other countries through the goods they’re buying. The country will also start feeling the effects when big companies start leaving for cheaper countries to produce and send their products to nigeria. Small companies start dying off when they can’t survive the competition from outside and there won’t be start up companies.

In the Long term:

The masses Starts to really feel the effects when companies start leaving and and people start loosing their jobs en mass. Start up companies cannot survive cos there is no way to start producing what has been produced cheap from another country. The country at these point the country will be in big trouble cos the only source of foreign exchange will most likely be oils as every other thing will be imported. At that rate, dollar will become very expensive cos everyone need dollar to buy that marvelous product produced in Gambia. Even petroleum products will become scarce and expensive cos marketers will prefer to divert their petroleum products to other West African countries where it is more expensive.


A solution is for nigeria to join for a short period. Expose whose companies in SA, Morocco to the Nigerian market, then withdraw from the deal and close the border. Their quest to keep selling to the Nigerian market will attract them to want to sell to nigeria prompting them to relocate.

But

The best solution would’ve been for Nigeria not to have entered the deal in the first place. Knowing nigeria and it’s terrain, it will be hard for us to withdraw from such deal that is if the subsequent government even remembers that we have such deal. Even if we do withdraw from the deal and close the border, we don’t have the will and expertise to deal with the heavy smuggling that will follow.

This is a very bad deal that the president has being cajoled into signing.

Exactly why Donald Trump is fighting against with Mexico, Canada and China is what nigeria is now diving into.

You just nailed it.

jomoh:
The only countries winning in this agreement are the countries with stable electricity and low Labour cost. South Africa is also a big winner in the deal.


Nigeria with the biggest market is surely the highest looser. We don’t produce anything worthy of export and the little we do is not yet enough for our population let alone for export.

In the short term:

The masses will enjoy with low prices and quality products from other countries. The country The country won’t loose and won’t gain

In the medium term:

The masses Will start feeling the effect of it when they find out all they work for are being taken away to other countries through the goods they’re buying. The country will also start feeling the effects when big companies start leaving for cheaper countries to produce and send their products to nigeria. Small companies start dying off when they can’t survive the competition from outside and there won’t be start up companies.

In the Long term:

The masses Starts to really feel the effects when companies start leaving and and people start loosing their jobs en mass. Start up companies cannot survive cos there is no way to start producing what has been produced cheap from another country. The country at these point the country will be in big trouble cos the only source of foreign exchange will most likely be oils as every other thing will be imported. At that rate, dollar will become very expensive cos everyone need dollar to buy that marvelous product produced in Gambia. Even petroleum products will become scarce and expensive cos marketers will prefer to divert their petroleum products to other West African countries where it is more expensive.


A solution is for nigeria to join for a short period. Expose whose companies in SA, Morocco to the Nigerian market, then withdraw from the deal and close the border. Their quest to keep selling to the Nigerian market will attract them to want to sell to nigeria prompting them to relocate.

But

The best solution would’ve been for Nigeria not to have entered the deal in the first place. Knowing nigeria and it’s terrain, it will be hard for us to withdraw from such deal that is if the subsequent government even remembers that we have such deal. Even if we do withdraw from the deal and close the border, we don’t have the will and expertise to deal with the heavy smuggling that will follow.

This is a very bad deal that the president has being cajoled into signing.

Exactly why Donald Trump is fighting against with Mexico, Canada and China is what nigeria is now diving into.

Couldn't have said it any better. Are you an Economist?

AngelicBeing:
China will be the major benefactor in this brouhaha, China has solid footings in almost all African countries, they will simply produce their goods ship it to different African countries and repackage those same goods that came originally from China and put the labels of the host country e.g Made in Gambia, Ghana, Ethiopia etc and export it directly to Nigeria, they will share the profits with their host country and Nigeria becomes a dumping ground for all manner of substandard goods. Nigeria will lose on the long run with the kind of demented leaders we have in the country

This is very unfortunate. I was here praising the president for refusing to sign the deal back in I think January or February but unfortunately he has been cajoled into signing it.

Nigeria does not win in any scenario no matter how it is painted. This goes to show that those around the president has been lying to him all this while. They have been telling him that some things are working or some things will soon start working which is not so.

iRyan:
Couldn't have said it any better. Are you an Economist?

Nope. Just an account and finance background with fair knowledge of demand and supply.

happney65:
He wasted a whole year by not signing it..Now ask him what changed in the agreement?Nothing..As in nothing at all..

An APC Stawalrt once told me,politics apart,The only thing he can use Buhari for in his life is to make him his gateman not even his chief security officer.

Did all the countries signed the deal on the same day or month even year? why can't you just deal with thing the way they are and stop commenting for likes ? tufiakwa

Very stupid move. So how will this help Nigerian manufacturers especially the small scale ones. We are back to an import dependent economy. Well the goodside is that we can now trade and freely import beef abi?

https://www.youtube.com/watch?v=y-79aEiK62s&t=530s

https://www.youtube.com/watch?v=h3LobmgESzs

Nigeria Signs Africa Free Trade Agreement

bravesoul247:
The intention behind this African Trade Area is a good one though but I don't see it favouring Nigeria. I think this will make foreign coys in Nigeria relocate to other Business friendly African countries and then send there products here only for sale without paying little or no tariff at all. This might lead to loss of jobs. What the government would have done was first put our infrastructures in place and build Investors' confidence before signing so that they won't relocate. The major reason why foreign investors still invest in Nigeria is just majorly cos of our huge population, that's all.

Smart thinking. I never thought along those lines.

Question is, what are tax rates in other African countries compared to Nigeria. I think that'll be a major factor in deciding if these multinationals will move.

happney65:
He wasted a whole year by not signing it..Now ask him what changed in the agreement?Nothing..As in nothing at all..

An APC Stawalrt once told me,politics apart,The only thing he can use Buhari for in his life is to make him his gateman not even his chief security officer.

I'd actually question the man if he didn't waste that one year

haryomikun:
Smart thinking. I never thought along those lines.

Question is, what are tax rates in other African countries compared to Nigeria. I think that'll be a major factor in deciding if these multinationals will move.

hmmmm m... Tax isn't the major issue here, the thing is that we lack major infrastructural facilities that would make businesses thrive e.g Power to power up machines, Good road for the ease of moving goods around etc. All these are what Nigeria lacks

happney65:
He wasted a whole year by not signing it..Now ask him what changed in the agreement?Nothing..As in nothing at all..

An APC Stawalrt once told me,politics apart, The only thing he can use Buhari for in his life is to make him his gateman not even his chief security officer.

Did your friend also consider the dangers of making a terrorist his gate man?

bravesoul247:
hmmmm m... Tax isn't the major issue here, the thing is that we lack major infrastructural facilities that would make businesses thrive e.g Power to power up machines, Good road for the ease of moving goods around etc. All these are what Nigeria lacks

I understand. However, the major reason these companies would consider moving operations to another African country is profit maximization. If the costs in these other countries don't pay them in the long run, they won't move. It includes cost of electricity and the rate of tax. I doubt they'd consider roads as a factor to move. Our roads no bad reach that one na