The most populous country in Africa has declined to sign another free trade agreement yet again; this time it is the Economic Partnership Agreement (EPA). The aims of the EPA include establishing a free trade area between the sixteen West African countries and members of the European Union.
The major plan of the Economic Partnership Agreement for all participating countries in the ECOWAS and EU is to remove trade restrictions. In sub-Saharan Africa, West Africa is the EU’s top trading partner as they have the largest trading relationship.
While receiving Letter of Credence from the Head of Delegation of the European Union to Nigeria, Ketil Karlsen, at the presidential villa, President Muhammadu Buhari, said that the reluctance to sign the EPA among the ECOWAS countries was because of a need to protect the economy, especially in industries and small businesses that provide jobs for a large population in Nigeria. The president reasoned that signing the agreement would put a lot of external pressure on industries and small businesses, which could lead to closures and loss of jobs respectively.
“Presently, our industries cannot compete with the more efficient and highly technology-driven industries in Europe. We have to protect our industries and our youths,” he said.
The President, however, commended the European Union on its efforts in the North East region of the country and stressed that the Nigerian economy is being positioned to accommodate even more investments that will create jobs locally.
From all indications the EU is still hopeful that a common ground would be reached with Nigeria to facilitate the signature. “We are hopeful that there will be a signature on the agreement,” Karlsen added. Karlsen also said that the EPA was designed to accommodate and protect some economies that would find it difficult to compete. He also expressed that the EU would not stop support the key priorities in President Buhari’s administration.
However, this would not be the first time that Buhari has backed out of signing a free trade agreement on behalf of the country. During a summit held last month in Kigali, President Buhari backed of the summit last minute saying that he wanted to further consult with stakeholders back in Nigeria hence did not sign the African Continental Free Trade Agreement (AfCFTA).
So far it seems Nigeria, which is arguably the biggest economy in Africa, is resistant to signing any regional and continental free trade agreements for the time being.
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