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Nigeria risks missing China’s zero-tariff opportunity – Experts

From The Punch · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Nigeria risks losing economic benefits from China's zero-tariff policy due to insufficient production capacity and high trade costs.
  • Experts urge Nigeria to boost production, improve standards, and streamline trade processes to capitalize on the policy.
  • The policy grants tariff-free access to China's market for products from 53 African countries, but capacity is key to realizing benefits.

Experts and stakeholders are warning that Nigeria could miss out on the economic advantages offered by China's zero-tariff policy unless it urgently addresses its production capacity, standards compliance, and trade costs. China has opened its extensive market to products from 53 African nations by eliminating tariffs, but Nigeria will only benefit if it can produce sufficient goods that meet Chinese standards, remain competitive on price, and are moved through an efficient trade system.

During an international seminar convened by the Centre for China Studies, participants emphasized that preferential access to the Chinese market is meaningless without the ability to produce goods that meet international standards and can be supplied consistently. Representatives from the Nigerian Institute of International Affairs, the Nigeria Customs Service, and the Centre for China Studies all agreed on this point. The seminar, themed "China's Zero-Tariff for African Countries and its Implications for Structural Economic Transformation in Africa," highlighted the policy's potential but also its prerequisites.

The first point I would make is that market access is an opportunity, not an automatic economic transformation. Tariffs can be removed, but production must still occur domestically.

— Gambo AliyuController, Federal Operations Unit Zone A, representing the Comptroller-General of Customs, on the nature of market access.

Adewale Adeniyi, represented by Gambo Aliyu, Controller of Federal Operations Unit Zone A, stated that market access is an opportunity, not an automatic economic transformation. He stressed that while tariffs can be removed, domestic production must still occur. "The real task is therefore to connect China’s market access with African productive capacity," Aliyu said, adding that if African countries lack sufficient goods meeting international standards, the benefits of zero tariffs will remain largely theoretical.

The Customs official identified sectors such as agriculture, agro-processing, solid minerals, chemicals, pharmaceuticals, leather, textiles, and light manufacturing as areas where Nigeria could significantly expand its exports to China. For Nigeria to fully leverage the zero-tariff regime, participants concluded that the country must urgently enhance its industrial base, improve standards adherence, and reform its trade facilitation systems. The Chinese policy, effective May 1, excludes Eswatini due to its diplomatic ties with Taiwan.

If African countries do not have enough goods that meet international standards, the benefit of zero tariffs will remain largely on paper. The real task is therefore to connect China’s market access with African productive capacity.

— Gambo AliyuEmphasizing the critical link between production capacity and benefiting from trade policies.
DistantNews Editorial

Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.