Border Closure Not Contradictory To AfCFTA – Chairman, Seni Adio

A Senior Advocate of Nigeria, Mr Seni Adio, is the Chairman
of the Nigerian Bar Association Section on Business Law. In this
interview with OLADIMEJI RAMON, he speaks on the
implications of xenophobic attacks in South Africa and the closure
of Nigerian land borders on the prospect of the African Continental
Free Trade Agreement

the NBA-SBL was instrumental in the process leading to
the signing of the AfCFTA by President Muhammadu Buhari; do you see
xenophobic attacks in South Africa, which saw Nigeria and others
repatriate their citizens, as a threat to the prospect of the
AfCFTA?

As always, the NBA Section on Business Law was delighted to
provide a platform for stakeholders’ consultations and engagements,
as well as advocacy in support of the signing of the AfCFTA. The
xenophobic attacks were most unfortunate and based on blind
ignorance. However, I don’t think that it would have a material
effect on the implementation of the AfCFTA, particularly with
respect to goods and services. However, the movement of persons
requires even more careful deliberations and indiscriminate acts of
violence could militate against implementation.

President Buhari signed the AfCFTA in July, about two
months later he ordered the closure of Nigeria’s land borders. Are
these two actions not contradictory?

Not necessarily. Moreover, my understanding is that the border
closure was based on the recommendation of the Comptroller General
of Customs. Indeed, the CGC also testified before the National
Assembly and explained the rationale for the closure, which is
temporary. That said, I would postulate that border closure is not
a solution. What is required is the development, implementation and
enforcement of trade remedies.

Fear has been expressed that with the AfCFTA signed,
Nigeria would be a dumping ground for foreign products; do you
think this is avoidable?

The fear is largely misplaced, and almost irritating.  What
are we trying to protect?  Mediocrity?  If you don’t
remember anything, remember this: “Rules of Origin”.  That is
the safeguard mechanism. All that we need to do is to be vigilant,
and implement and enforce this very critical anti-dumping
tool.  Moreover, why are we so caught up with fears of
dumping?  The potential for dumping is not peculiar to only
Nigeria. Other large economies on the continent have similar
concerns but they are not letting it paralyse them into becoming
protectionists.

There is also the fear that the AfCFTA may compound
Nigeria’s insecurity problem; do you think this fear is
real?

It is a concern for all member states. In the case of Nigeria,
it’s a serious and legitimate concern.  The point however is
that AfCFTA or not, we need to enhance our security architecture
because the threats are real even without the AfCFTA.

The NBA-SBL has been advocating the signing of the
Company and Allied Matters Repeal and Enactment Bill by the
President; what are the benefits of the bill?

The benefits are numerous, including but not limited to the
following: reducing the cost of incorporation; limited liability
companies may be incorporated with a single director and
shareholder; and MSMEs would no longer have to convene Annual
General Meetings.

Furthermore, if signed into law, the CAM Bill will facilitate
the use of technology in the registration of businesses; reduce
minimum share capital to incorporate companies; allow registration
of partnerships with limited liability; dispense with the
requirement of having a company seal; eliminate the use of court
order to reduce share capital – a special resolution of
shareholders will suffice.

It will also create framework for business continuity and
enhance minority protection — shareholders may institute derivative
action against company and affiliates.

Nigeria just moved up in the ease of doing business
rating; do you see this translating into more foreign
investments?

At a minimum, it demonstrates that strong fundamentals are being
implemented to ease doing business in Nigeria and to make the
economy more competitive. I can wager just about anything that our
ranking would have been much higher if we had signed the CAM Bill
into law. This is not just for the ranking, but for also inclusive
growth, such as fostering a catchment of the informal business
sector into the mainstream economy.  The ranking will
certainly get the attention of potential foreign and, indeed, local
investors. Equally important though are certain additional
fundamentals, such as consistent government policies, objective
application of same, predictability of the economic environment,
security and, the all important, transparency and integrity of
dispute resolution mechanisms including our judicial system.

Recently, you were appointed the representative of Oyo
State on the Board of Directors of Odu’a Investment Company
Limited; what are your aspirations in this new role?

It is a tremendous honour to have the privilege, and to have
been nominated by His Excellency, Mr Seyi Makinde, the Governor of
Oyo State. His Excellency has been exemplary and made exceptional
strides in a very brief period.  Stay tuned.  Back to
Odu’a, the conglomerate has a most enviable and storied history.
The institution recorded many firsts, not just in Nigeria or West
Africa, but indeed the whole of the African continent and beyond.
The collective aspiration is to reposition the organisation as a
beacon of prosperity and economic revitalisation.

How should Nigerian lawyers prepare to benefit from the
AfCFTA?

Broadly speaking, they should develop a proficiency in
international trade law, which encompasses cross-border
transactions, dispute resolution, including arbitration, mediation
and negotiation, and financing of infrastructural projects.

Culled from Punch

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