The latest is the categorization of Nigerian traders among foreigners
in Ghana, who are to vacate all market designated areas, and also register their businesses with
$300,000; very ridiculous you will say?
Moves by the Nigerian government to bring about a resolution, so far, have been fruitless.
Deadline for the so-called registration is 20th of June, 2012.
Written by Ajayi Oluwapelumi
Chief Micheal Ajayi is the Director–General of Nigeria-Ghana Chamber of Commerce, founding President of Nigeria's Professionals in Ghana Forum and the Chief Executive Officer of Vintage Vision Company, Ghana, which has executed major projects in bridging the gap and integration of
economical development through Ghana, Togo, Benin, Nigeria business summit.
In this chat with Ajayi Oluwapelumi, he revealed some of the major challenges Nigerian business owners are battling with in Ghana and his efforts to genuinely upgrade the
level of economic integration in African countries.
Excerpts.
Q: HOW challenging is it, encouraging West African citizens to invest in another ECOWAS member country?
A: It is very challenging-in the sense that people still do not realize the enormity of the potential available in intra-country trading with the West
Coast which is why as a company; we initiated the Ghana-Nigeria business summit. We expanded the Ghana-Nigeria business summit into Ghana, Togo, Benin business summit essentially to bring business people, government officials together in each of these countries to begin to look at the obstacles facing trade. For instance, the ECOWAS has set up
a trade team which is called ECOWAS Trade Liberalization Team. It has been there for close to 30 years; it allows you to manufacture in one ECOWAS country and export duty free to another ECOWAS country.
This is to allow benefit of cheaper products among ECOWAS countries. A lot of countries are either not aware or unable to access its full benefit because some countries have been resistant to allow the treaty to operate the way it has been designed.
Imagine a situation where such treaty is effective and it's being taken advantage of that would, to a large extent, promote trade in West Africa and discourage the importation of costly goods outside West Africa.
Another example, I want to dwell on is the fact that Ghana and Nigeria have been cultural and economic friends for thousands of years. However, it's unfortunate that as we speak today, there is no bilateral trade agreement awaiting the two countries to sign, which will now set out the terms and condition for operations and relations between the two countries. If you want to do the volume of trade between Nigeria and Ghana, there is really no accurate data available to capture it.
Q: How has the delay in signing the bilateral trade agreement been affecting you as a foreigner doing
business in Ghana?
A: it is affecting me and every business man or potential business man in the sense that there are
lots of little issues which need to be decided on and that will determine how far you can go as a foreign business man. Right now, there are restrictions to operations as a foreign company in Ghana. In other words, Nigerian businesses will still be treated like foreigners. But if there is a bilateral trade agreement that sets out the terms of agreement on what Nigerian business men are permitted to do in Ghana and what Ghanaians are permitted to do in Nigeria, this would have averted all sorts of
misunderstandings and unfair treatment. Under the ECOWAS charter, citizens from member countries are not to be regarded as foreigners.
Q: It appears that such problem is what Nigerian traders are also facing being categorised as foreigners who need to register their businesses with $300,000. How do you think the NHC and Federal Government should address this problem?
A: That brings us to the same issue; until there is a bilateral agreement between the two countries, Nigerian businesses in Ghana will continue to be subjected to foreign trade requirements to establish in Ghana. Of course, there is an Act in Ghanaian law that says foreigners are not allowed to do certain kind of businesses. It also says that they are not allowed to operate in the designated market areas. It says that they are required to bring a minimum of share capital of $300,000 which of course for a middle class business person is an impossible task. However, if there was that bilateral agreement, it would have set out these terms and take preferential care of Nigerian traders. The issue of Nigerian traders in Ghana has been on for four to five years and we have made all sorts of effort but nothing happened. I think it is the political way that it now requires to solve it.
It is high time the government of Nigeria met with the government of Ghana to agree on these terms
and offer some kinds of protection to their respective citizens. Until that is done, nothing is going to change. Also, Ghanaian government has
been complaining about certain products being restricted from being imported into Nigeria. The same excuse they are giving to some Nigerian goods. If there is no Bilateral law, every country is going to continue to apply general laws to ECOWAS member countries.
Q: One of the major missions of the Nigeria Mission in Ghana is to ensure that issues like these are attended to, but obviously, nothing has changed.
Will you say the immediate past Nigerian High Commissioner to Ghana failed in this aspect of his assignment?
A: No. I will not say he failed because I know and I think everybody in Ghana knows that he made spirited effort and he had at many times brought
the Minister of Foreign Affairs, former Minister of Trade and many other relevant ministries- trying to bring up this issue and setting up the bilateral
agreement. He has mediated in several crises that occurred when some Nigerian traders' shops were
closed. So, I think he made a lot of effort but the effort right now is beyond the control of any high
commissioner; I think it now requires a presidential dialogue between the two countries.
It baffles me how the Nigerian government and Ghanaian government go about as if they don't
remember that there are issues to be addressed. I think it is important that the two countries at the presidential level come together to review and
agree on what to do because on the long run, as a Nigerian, I know that the majority of whatever actions are taken, it will affect Nigeria more than
how it will affect Ghana because there are more Nigerians doing business in Ghana than Ghanaians doing business in Nigeria.
Q: It was generally believed that one of the major aims of President Jonathan's visit to Ghana in 2011 was to sign the bilateral trade agreement. Why do you think Senator Obanikoro, having such a huge opportunity, did not press it on Mr. President to make it happen?
A: Well, I am surprised myself, and I would not know why that did not come up but I hope the new High
Commissioner will bring up the issue, so it can become a front burner issue to the Federal Government.
Q: You are recently given a regional integration and leadership award by the Nigerian High Commission.
How exactly did your penetration into Africa as a corporate personality start?
A: I will say it started from the point where I was recruited out of the University by UAC Nigeria in 1988. As at that time UAC had about 22 working divisions, so that gave us the opportunity to go round the country and relate with all other affiliate
companies all over their branches in different parts of the world.
When I came to Ghana, and eventually ended up working for U.S government owned company, Phtyo Riker Pharmaceuticals, which was at the time the largest manufacturing company in West Africa, I was the Vice-President of the company, and
because of the position I held, I had to travel to several countries. I have been to all West African countries and many other African countries; so that
is where my regional integration into Africa started.
Then, I observed and came to the realisation of the fact that very little trade was going on among West
African countries. It was common for people to leave Ghana to travel to China or from Nigeria to Dubai to buy goods, while little trade is going on in
the formal sector. Very few companies are actually exporting formally. So everybody is losing money; government is losing revenue, the business men are losing money to taxes because they are smuggling their goods in and out. So that is where the passion to make a difference all started from.
Q: How successful was the Ghana–Nigeria business summit which your company organised?
A: It was extremely successful as far as I know; in the sense that, it was the summit that led to the formation of the Ghana–Nigeria Chamber of
Commerce. It was the Ghana–Nigeria summit that led to the conceptualisation of a bilateral trade
agreement. Ghana, Togo, Benin, Nigeria summit was also successful in the sense that over the years
we have been hosting it, Alhaji Bamanga Tukur, Chief Ernest Shonekan, former President of Ghana,
John Kufour and former President Olusegun Obasanjo have at one time or the other chaired the summit.
It was a high profile summit which has attracted a lot of great personalities. A lot of business people have benefitted from it. Many business people have
started to see opportunities available to them in these countries and as a result of that, so many Nigerian investors have come to set up businesses in Ghana. If we are to look at the volume of trade between Nigeria and Ghana between 2008 when this summit started and now, it has increased tremendously.
Sent from my BlackBerry® wireless handheld from Glo Mobile.
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