To Boost Credit Economy, FG Moves to Address Lapses in Bankruptcy Act

•Templates for free trade, mutual recognition agreements ready 

•Framework for conduct of import-injury investigations, others to be established

James Emejo in Abuja

The Minister of Industry, Trade and Investment, Mr. Niyi Adebayo, yesterday said efforts to address identified lapses in the existing Bankruptcy Act Chapter 30, Laws of the Federation of Nigeria (LFN) 1990, would commence with a national conference on bankruptcy and debt collection in May.

The minister pointed out that the move which was in line with the Trade Policy Action Plan 2022 – 2026 of the federal government, would help to develop an institutional and regulatory framework to regulate business behaviour, and ensure that only viable concerns continue to operate.

Speaking at the 3rd Trade Negotiation Skills (TNS) Simulation Course, which was organised by the Nigerian Office for Trade Negotiations (NOTN), in collaboration with the Overseas Development Institute (ODI) and the Foreign, Commonwealth and Development Office (FCDO) of the United Kingdom (UK), Adebayo said the new framework would also include the establishment of debt collection offices in the 36 States of the federation, including the Federal Capital Territory (FCT).

He said part of the objectives was to contribute to the creation of a modern 21st-century credit – economy for the benefit of producers, retailers, and consumers in the country.

Adebayo further disclosed that work had been concluded on the Nigerian Templates for Free Trade Agreements (FTAs) and Mutual Recognition Agreements (MRAs) for standards and professional qualifications.

He said the ministry would soon be presenting the draft templates to the Federal Executive Council (FEC) for consideration and approval.

The minister further disclosed that the Federal Ministry of Justice had cleared the Bill for the establishment of the institutional and regulatory framework for the conduct of import-injury investigations; and the determination and implementation of trade remedies in Nigeria.

This, he noted, was long overdue legislation that would enable the country to take full advantage of its rights and obligations under the World Trade Organisation (WTO) agreements to protect its domestic industries from any unforeseen sudden surge in imports of foreign goods and/or unfair practices, particularly dumping and subsidies, by unscrupulous trading partners.

He added that the ministry would also be presenting the Bill to the FEC for consideration and approval.

Adebayo, also said arrangements were ongoing for the launch of the first National Trade Integration Study (NTIS) for Nigeria – to among other things, understand better the macroeconomic environment and the challenges to the country’s integration into the international economy; analyse the country’s performance with respect to trade in goods and services; evaluate the investment climate; identify opportunities for trade in key sectors with export potential as well as assess institutional capacity.

The minister explained that the NTIS would aim to provide an empirical framework for mainstreaming trade into Nigeria’s development policies and strategies, thereby serving as the platform for a comprehensive trade integration strategy in the country.

He said it would further enhance the country’s productive capacity and ensure that it fully benefits from any market access opportunities that would be created through the negotiation of trade agreements.

He stressed that the ministry had kicked off the process for the comprehensive review of the Nigeria Industrial Revolution Plan (NIRP), focusing on the implementation structure, the forecasted targets, and the statutory institutionalisation of the plan to provide legal certainty for investors in the industrial sector.

According to him, the NIRP review exercise would enable the ministry to take onboard the new realities of the global economy and developments in the selected sectors, particularly with respect to the COVID-19 pandemic, the African Continental Free Trade Area (AfCFTA), climate change and the rising trade and geo-political tensions.