Nigeria tasks ECOWAS on resolving issues inhibiting sub regional trading in palm oil

Nigeria is advocating for a resolution to disputes among palm oil-producing nations within the Economic Community of West African States (ECOWAS), which are hindering regional trade. Ambassador Yakubu Dadu, head of ECOWAS National Unit at the Ministry of Foreign Affairs, emphasized the urgency of this issue during a meeting convened in Abuja specifically focused on the free movement of palm oil under the ECOWAS trade liberalization scheme. Dadu underscored the necessity of establishing measurable metrics that take into account the production capacity and economic conditions of individual ECOWAS member states.
Despite the significant successes achieved since its inception in 1979, the ECOWAS Trade Liberalization Scheme (ETLS) faces challenges within the vital palm oil sector. These challenges stem from disagreements among member states regarding the cross-border movement of palm oil, posing a threat to the stability and growth potential of the sector. Dadu stressed the importance of fostering an environment conducive to innovative solutions that can ensure the sustainable growth of the palm oil sector within the ECOWAS region.
On the sidelines of the event, Mrs. Massandje Toure-Litse, ECOWAS Commissioner for Economic Affairs and Agriculture, pinpointed taxation as one of the key hurdles impeding palm oil trading in the region. While the introduction of the ETLS eliminated tariffs on intra-regional trade, some countries continue to impose taxes on palm oil transactions, contrary to ECOWAS regulations. Toure-Litse emphasized the imperative of resolving such discrepancies to facilitate smoother trade operations.
Further elaborating on the challenges facing the palm oil sector, Salifou Tiemtore, Director of Customs, Union, and Taxation at the ECOWAS Commission, highlighted the inadequate production levels of palm oil within the region to meet the demand. Despite Nigeria’s substantial capacity to double its palm oil production, there is a need for incentives to bolster production and expand market reach through the ETLS. Tiemtore emphasized the importance of supporting entrepreneurs in scaling up production to fully leverage the potential of the ETLS.
These discussions aim to delve into the complexities of the palm oil sector, analyze import and export data, identify challenges, and propose comprehensive solutions to foster sustainable growth within the ECOWAS palm oil market.
Source- Vanguard

OUR REVIEW
Nigeria’s push to resolve disputes among palm oil-producing nations in ECOWAS is crucial for regional trade. Ambassador Yakubu Dadu’s emphasis on measurable metrics reflects a strategic approach to addressing production and economic variations among member states. Despite ECOWAS’ successful trade schemes, disagreements hinder the palm oil movement, threatening sector stability. Mrs. Massandje Toure-Litse highlights taxation discrepancies, obstructing trade flow despite ETLS benefits. Salifou Tiemtore’s insights underscore the need for enhanced production incentives to meet regional demand. By analyzing data and proposing solutions, these discussions aim to foster sustainable growth in the ECOWAS palm oil market.