With the earlier commitment of Nigeria to World Trade Organisation(WTO) global trade agreement in which foreign investors can own a firm 100 percent in the country, a development that is now haunting the African giant at the continental level, Nigeria is now set to employ the tool of regulation to set conditions for foreign investors into the country, LEADERSHIP Sunday learnt.
The WTO global trade agreement in which Nigeria committed to, as far back as 1995, is now working against her in the African Continental Free Trade Area(AfCTFA) as it must not go lower than what it already agreed at the world level. Initially, Nigeria was planning to avoid 100 per cent ownership structure for foreign firms under AfCFTA so that the country can benefit the most.
However, the government later learnt it will have to replicate what it signed at the global level on the continental trade agreement, thus, slowing down the commitment of Nigeria towards AfCFTA. But in recent times, there seems to be leeway, especially, in the financial service sector, as discussions are ongoing on how regulators of each sector of the economy can use regulation to limit free foreign investors’ entry into the country.
Leaving it open to as it were, government fear, could make Nigeria a dumping ground for some manufacturers across the continent, as well as jeopardize the local content law, thereby, adding little or nothing to the country’s Gross Domestic Product (GDP).
Exploring regulatory options, it was learnt, will smoothen rough edges in the earlier trade agreements in a move to increase opportunities for Nigeria under AfCFTA.
Speaking on this development at a workshop themed ‘Preparing Insurance Brokers For The Take-Off Of the African Continental Free Trade Area(AfCTFA)’ organised by the Nigerian Insurance Industry Committee on AfCFTA (NII-AfCFTA) in Yaba, Lagos, at the weekend, the chairperson of Nigerian Insurance Industry Committee on AfCFTA, Ekeoma Ezeibe, disclosed that, the World Trade Organisation (WTO) Protocol signed in 1995 may have already opened up some parts of the insurance sector in Nigeria 100 per cent, adding that, what this means is that operators may not negotiate their way out of the situation even if an interest state party wishing to come into Nigeria to carry out some aspect of insurance business had not opened up their side as wide as theirs.
She noted that the law of reciprocity may not avail insurance practitioners an opportunity for cover as well. To this end, she urged regulators,especially , the National Insurance Commission (NAICOM) to use the tool of regulations to smoothen rough edges in the earlier trade agreements in a move to increase opportunities for Nigeria under AfCFTA.
Earlier, the director, Trade in Service, Investment, IPR and Digital Trade, AfCFTA secretariat, Emily Mburu-Ndoria said, under AfCFTA, every nation’s domestic regulations will prevail, but there would be mutual recognition between countries.
The agreement, she added, would not stop member countries from having their regulations, but would help strengthen regulations to align with international best practices, while urging insurance brokers in Nigeria to position themselves for the enormous benefits to be provided by the agreement.
The president of Nigerian Council of Registered Insurance Brokers (NCRIB) Babatunde Oguntade advised insurance brokers to prepare for the opportunities to be created by AfCFTA, by upscaling their skills and embracing collaborations.
Similarly, the commissioner for insurance, Olusegun Omosehin said, AfCFTA presents a significant opportunity for the Nigerian insurance industry to expand its footprint across the continent. He, however, said, it also poses challenges, such as increased competition, regulatory complexities, and the need for greater professionalism.
The commissioner who was represented by the deputy commissioner , Technical, Dr. Usman Jankara said, insurance brokers’ expertise and professionalism are essential in facilitating the growth in the insurance industry.
He listed capacity building, professionalism, digital transformation, regional market understanding and collaboration and partnerships, as some of the key areas that must be improved upon by Insurance brokers for the takeoff of AfCFTA.
He assured them that the commission is determined to ensure that Nigerian brokers are not disadvantaged in the AfCFTA regime, emphasising that, brokers must seize the gauntlet and improve their value proposition, professionalism and service delivery to remain very relevant.
“The Commission will provide the necessary support and guidance, but it is ultimately up to you, the brokers, to take the necessary steps to remain competitive and relevant. This is one of the reasons the Commission has heightened its ongoing supervision and regulation of insurance brokers, including the latest requirement for development of Manuals, Code of Ethics and Standard Operating Manuals,” he pointed out.
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