Group Managing Director/chief executive officer of Skye Bank Plc, Mr. Kehinde Durosinmi-Etti, has said that the establishment of a common market and the adoption of a common external tariff? by ECOWAS member states would promote a viable regional capital market.
According to him, a viable capital market will attract investment capital from other markets, with inflows from such markets contributing towards financing projects that will help industrialise the region.
The Skye Bank boss disclosed this in a paper titled “ECOWAS Common External Tariff: Potential Implication for the Manufacturing Sector” which he presented at a public lecture/Annual General Meeting organized by the Manufacturers Association of Nigeria (MAN), Ikeja Chapter.
Durosinmi-Etti who said a uniform tariff would ensure transparency in customs formalities, said such development will also improve the investment climate and competitiveness of the private sector within the sub region.
Besides, he said the establishment of a common market and the adoption of a common external tariff? by ECOWAS states would curb smuggling thereby increasing customs revenue. He contended that if national policies were set within the framework of the union, there would be greater synergy in trade, fiscal and monetary policies among ECOWAS states.
The bank chief however said for the benefits of economic integration and common external tariffs to be enjoyed in the sub region, the challenge of inadequate infrastructure? must be tackled. Specifically, he said poor haulage, irregular power supply and weak regulatory framework presently increase the cost of doing business, making it difficult to comply with ECOWAS common external tariff.
He therefore called for the removal of barriers to trade in the sub region which constrain trade flow and undermine competitiveness. Similarly, he called for the creation of a reliable payment system among member states.
Durosinmi-Etti advocated for improved transportation system within the sub region to aid movement of goods and people as well as improving connectivity.
The banker noted that if the obstacles in the way of common external tariffs were removed, it would provide an enabling environment to widen the scope of business? from the economies of scale in addition to opening access to a large market of over 234 million people.
He further said the manufacturing sector in the sub region would have access to a wealth of untapped mineral resources just as a uniform tariff would promote a conducive atmosphere for investment and private sector participation.