By Martha Agas
Some experts have expressed concern that China’s zero-tariff regime on exports from Africa may drive unprocessed mineral exports.
The experts told the News Agency of Nigeria (NAN) on Tuesday in Abuja that the policy could also affect the implementation of the Federal Government’s value addition policy for minerals.
NAN reports that the zero-tariff regime policy aims to create new opportunities for Africa to boost exports and industrialisation amid global headwinds of protectionism.
NAN recalls that China, effective from May 1, expanded its zero-tariff treatment to cover all 53 African countries with which it has diplomatic ties.
Prior to this expansion, China had already scrapped tariffs on 100 per cent of tariff lines for 33 Least Developed Countries (LDCs) in Africa, effective Dec. 1, 2024.
According to the new arrangement, zero tariffs will apply to the 20 African non-LDCs including Nigeria, in the form of a preferential tariff rate for two years.
The arrangement is also expected to facilitate the signing of the China-Africa Economic Partnership for Shared Development agreement with relevant African countries.
An expert, Prof. Akinade Olatunji, said that for Nigeria’s solid minerals sector, the policy, if not properly managed, could undermine efforts to stop the export of unprocessed minerals.
Olatunji, immediate past President of the Nigeria Mining and Geosciences Society (NMGS), said the move could defeat government’s value addition policy.
“China is looking for raw materials either to stockpile or feed the growing need of their local industry and will prefer raw minerals to processed ones,” he said.
The Professor of Applied Geochemistry said that, given the growing presence of Chinese mining companies in Nigeria, high tariffs might not be a major concern in the sector.
“High tariff would have made their operations in the continent unprofitable,” he said.
According to him, the protection of Chinese investments across various sectors, especially solid minerals, may also explain the scrapping of tariffs altogether.
Also, the National President of the Miners Association of Nigeria (MAN), Dele Ayankele, said the policy would incentivise large-scale export of Nigeria’s raw minerals, especially energy transition minerals.
Ayankele added that this would undermine government policies on value addition, industrial revolution, and technology transfer.
He said it could also pose a serious risk to Nigeria’s drive for poverty reduction, wealth creation, and improved revenue generation for economic growth and infrastructure development.
“It is our candid opinion that the Federal Government should embrace this bait with caution, especially as it affects the solid minerals,” he said.
An economic expert, Dr Emmanuel Eche, said the tariff policy presents both opportunities and challenges for the solid minerals sector, with short- and long-term implications for the Nigerian economy.
Eche, a Senior Lecturer in the Department of Economics, Federal University Wukari, Taraba, said Nigeria could benefit from increased export opportunities for solid minerals such as copper, iron ore, and tin to China, boosting export revenues.
“With zero tariffs, Nigerian exporters can save on costs, making their products more competitive in the Chinese market,” he said.
He added that expanded mining activities could lead to job creation and short-term economic growth.
In the long run, he said the policy could encourage economic diversification and value addition before export.
“Increased investment in mining and processing could drive industrialisation and economic growth.
“It could lead to infrastructure development as improved transportation and logistics systems may be required to support increased mining activities,” he said.
According to him, to maximise these benefits, Nigeria should prioritise value addition, infrastructure development and a conducive policy environment to attract investment, including the development of local skills and expertise in the mining sector.
“China’s zero-tariff regime could be a game-changer for the solid minerals sector.
“With this policy, Nigeria can boost non-oil exports, particularly in agriculture, textiles, solid minerals and manufactured goods,” he said.(NAN)(www.nannews.ng)
Edited by Gabriel Yough
