Dr Ngozi Okonjo-Iweala the director general of the world trade organization has advised the president of the federal republic of Nigeria that the cost associated with trade in Nigeria are too high thus reducing prospective investors which consequently affects the country foreign direct investment.
She further explained that the nation must minimize all forms of cost associated with trade or movement of goods and services laying emphasis on the supply chain link to the final consumer.
The director general of the WTO speaking during the mid term ministerial performance review in Abuja layed emphasis on security of investments.
Dr Ngozi explained that the capacity constraints and costs in Nigerian ports discourage investors and creates complexity in supply chain value and operation, she also stated that nigeria trade cost is equivalent to 306 percent tariff one and half times are higher than the cost in high-income countries.
The WTO boss noted that congestion, capacity constraints and high costs at Nigerian ports do not encourage investment as they make it difficult to build supply chain operations in the country.
She said “Nigeria’s trade costs are too high. According to the World Bank-ESCAP trade costs for 2019, trade costs for African countries are on the average equivalent of a 304 per cent tariff and for Nigeria, it’s even slightly higher at 306%.
“These numbers are one and half times higher than trade cost in high-income countries. Such high costs are not conducive to forming a regional value chain.
