PROTOCOLS.
I stand here with a great sense of fulfilment on this occasion of the 8th edition of the Zenith Bank Export Seminar. I say this because I remember where we started from and where we are now. In case you don’t know, Zenith and I started this journey together in 2015 during my tenure as the
ED/CEO of the Nigerian Export Promotion Council (NEPC). At that maiden seminar, I presented the newly developed Zero Oil Plan, an economic
blueprint, for the diversification of Nigeria’s economy. The Zero Oil Plan in a nutshell addresses the realisation that our country must survive in a world economy when and if she can no longer sell oil. We then identified
22 products for which Nigeria must increase production volumes in order to earn at least $30 billion annually. Furthermore, we realised that within the top 20 export countries in the world, the non-oil export countries tend to be richer, have faster growth rates, and have more resilient economies. Nigeria, therefore cannot expect to stick to exporting oil and become a major economic engine, or deepen the size and resilience of her economy.
The global drive towards ‘green’ energy has further made it imperative for Nigeria to develop its non-oil sectors. Oil exporting countries will be impacted in three ways by global energy revolution namely:
1, Capital loss due to abandonment of hydrocarbon reserves.
2, Economic losses as the treasury may no longer be able to fund the public sector with oil revenues.
3, Loss of competitive geopolitical advantage as hydrocarbons are replaced by global or regional energy access to VRE sources; solar, wind, hydro etc
I cannot emphasise enough that an export led industrial revolution is what is needed for Nigeria and indeed Africa Under the Zero Oil Plan, a critical success factor was collaboration with the private sector, particularly our financial institutions. I remember emphasising to Zenith Bank the crucial role the private sector, particularly
the banking sector must play in ensuring Nigeria becomes a non-oil export driven economy. Today, I am glad to see that Zenith Bank heeded with all
sense of responsibility, and as a result, today they have been tagged as Nigeria’s number one non-oil export bank.
The theme of this year’s seminar is “Nigerian Non-Oil Export Industry; The Present and The Future”. The theme inherently poses two questions; firstly, what is the present? secondly, what is the future? From my vantage the answer to these questions is simply; an ambitious drive to rapidly increase the volume of Intra-African Trade, under the African
Continental Free Trade Area (AfCFTA). The impetus for this is the Declaration of the African Union Assembly of Heads of State and Government, designating 2023 as the year for the Acceleration of the
AfCFTA implementation.
The AfCFTA remains the largest free trade area in the world, by area and number of participating countries, with a population of 1.3 billion people across 55 countries, and a combined gross domestic product (GDP) valued at US$3.4 trillion.
The AfCFTA offers a plethora of opportunities for Nigeria to reap economic and social benefits as a result of potential future improvements in areas
such as infrastructure, reduction of tariff and non-tariff barriers to cross border trade, renewed funding, and improved liquidity.
Several efforts are already underway to achieve an accelerated AfCFTA implementation. These include, the launch of the Pan-African Payments Settlement System (PAPSS), the finalisation of the protocols on investments, intellectual property and competition, the drafting of the protocol on women and youths, the AfCFTA Business Forum held earlier this year in South Africa, and lastly the upcoming inaugural AfCFTA Youth Symposium set to hold in Lusaka, Zambia this month. It is also imperative that I acknowledge the great strides of the AfCFTA Secretariat, under the leadership of my dear brother H. E. Wamkele Mene.
Most particularly, I must laud the Guided Trade Initiative (GTI), which aims to test the operational, institutional, legal, and trade policy environment
under the AfCFTA. The GTI is also designed to promote trade in goods between participating countries, and to help develop regional value
chains. The first phase is already being implemented among seven countries. At the National Action Committee on the AfCFTA, we are working assiduously towards ensuring that Nigeria joins the second phase of the GTI, which is set to start soon. I must also draw to our attention to the fact that international organisations such as the World Economic Forum (WEF) are also showing great interest in the AfCFTA. They have taken the initiative to spotlight Africa as the next
frontier for investment, due to the opportunities created by the AfCFTA.
Furthermore, they have also developed the “Friends of AfCFTA Initiative” aimed at mobilising global investors and industry players to
actively leverage the opportunities within the AfCFTA. This further entrenches the fact that the present and the future is; trade within the AfCFTA. My office is collaborating with WEF to ensure that Nigeria benefits from these initiatives. Zenith Bank of course must be part of this. Several opportunities abound in the AfCFTA, from automotive to agriculture and agro-processing to pharmaceuticals to transport and logistics. Notwithstanding the previously mentioned opportunities, I would like to highlight one that is very strategic for Nigeria and most importantly
dear to my heart. This opportunity is trade in services. Under Nigeria’s AfCFTA Implementation Strategy, trade in services has been identified as
the arrowhead of Nigeria’s participation in the AfCFTA. Leveraging trade in services would also be very instrumental in reducing youth unemployment.
Taking into cognisance the rapid drive for industrialisation across Africa, which has been created by the AfCFTA, there is an increased demand for both IT – Enabled and non-IT – Enabled professional services. Currently, there is a huge skills gap across Africa in the required industries, therefore actions must be taken to address this, if we are to succeed at attaining an industrial revolution in Africa. You must know, that when I say industrial revolution, I am also talking about the 4th industrial revolution, which
includes the most cutting-edge hi-tech industries. My office is currently working with WEF to set up a skills accelerator in Nigeria to address this
gap. I also believe this is an initiative that the whole private sector must support and actively participate in. In view of all these, just as I did in 2015, I would like to utilize this special occasion to make another clarion call for Action to the private sector and more specifically Zenith Bank. You must do all you can to carry along Large, Micro, Small, and Medium Enterprises (MSMEs), and support them to participate effectively in the AfCFTA, particularly through tailored financial products and capacity building. You would play a key role in facilitating trade between Nigerian businesses and businesses in theAfrican countries where you are currently present, Ghana, Sierra Leone, and Gambia, while also expanding your footprint to other Africancountries. You must not only be known as the non-oil export bank, but also the AfCFTA bank. I have great hopes and confidence, that just as you didwith the Zero Oil Plan you would also do with the AfCFTA.
Ladies and gentlemen, as I conclude, I want to remind us that the responsibility to build Africa lies in our hands. We must take bold, audacious and accelerated steps towards ensuring that we achieve the Africa we want, and most importantly make sure Africans are the primary beneficiaries of the AfCFTA.As I often say “all Africa needs for Africa is in Africa” I would like to thank the Zenith Bank family for inviting me, I always feel at home when I am here. It has been a privilege to deliver this goodwill message. It is my hope that we would swiftly move from talk to action.
Thank you and God Bless.
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