After this week’s visit to Accra, the Minister of Foreign Affairs of the Federal State of Nigeria, Olugbenga Ashiru returned to Abuja, Thursday, with an inspiring message to expatriate Nigerians conducting business on the other side of the border that they may enjoy better trading protocols soon.
At the culmination of 2012, Ghana had suspended interests of thousands of entrepreneurs from its eastern neighbor, by demanding that they have a starting margin of $300000, as the base capital, for establishing an entity in the country.
This saw the two countries engage in talks that revisited the protocols of trade that the economic bloc of the region, ECOWAS, has set forth, stipulating that a country has a right to allow multinationals of another to establish entities even with a base capital of $10000.
On the other Side of the Fence
The Ghana Chamber of Commerce & Industry (GCCI), under whose mandate trade within its sovereign borders falls, had reiterated earlier that the two nations were already appropriating a two-state committee to resolve all tentative issues that are challenging their formerly-always-thriving associations.
The first incident that brought the bubbling tension to the light was the announcement by the Nigeria Union of Traders Association, Ghana Chapter (NUTAG) that the Ghanaian ministry in charge was encroaching on the Economic Community of West African States’ guideline of free trade by clamming down on some of its associates’ enterprises, the forgoing week.
Other high profile personalities who have made a landfall in Ghana to help mend the raw wounds of collapsing business ties include the Federal State’s, High Commissioner to Ghana who had convened with the GCCI before the visit by the minister.
Commodities under the clamp
Each country, however, has its own limits on the extent of specialization by regional entities, with Ghana declaring that all small-scale means of livelihood are for the native people. Nigeria, on the other hand, does not allow importation of rice from Ghana.
Concerning rice, Nigeria, still imports the commodity despite its goal to make the country self-sufficient in production of the crop by 2015, especially with its 40% worth of idle arable land that it can make productive, according to an African Development Bank (AfDB) report that came out this week.
Both Nigeria and Ghana enjoy advanced economies, bolstered by their fossil energy resources, mining and thriving ICT sector, each of which has attracted multinationals.