Nigerian traders, despite the long opposition to their involvement in the country’s retail space by trade bodies such as the Ghana Union of Traders Association (GUTA), have now been officially allowed to participate and trade in the Ghana’s retail space.
This follows a joint communique between Ghana and Nigeria on the sides of the Extraordinary ECOWAS Summit on the back of the review of the $1 million minimum capital required of foreign businesses under the GIPC Act before they are allowed to operate in the country’s retail space.
Until now, the minimum capital requirement prevented a lot of Nigerians from plying their trade in the retail sector – although quite a number of them flouted the law and engaged in business in the retail space.
Making the announcement to the Nigeria’s House of Representatives last week, Speaker of Parliament, Alban Kingsford Bagbin, said,” Particular mention is the reconsideration of the $1 million minimum requirement for trading enterprises under section 28(2) of the Act. This is to facilitate regularization of the businesses of affected Nigerian retail traders in the trade impasse.”
“Equally commendable is the special concession to be applied to a requirement for a payment of 0.5 stamp duty. Our Parliament is working to make sure this does not apply to our brothers and sisters from Nigeria.”
Adding that the new intervention ends the 25-year retail impasse between the two West African countries.
Meanwhile, the Ghana Union of Traders Association (GUTA) has expressed strong exceptions to the announcement made by the Speaker of Parliament.
President of GUTA, Dr Joseph Obeng, has said the announcement is a slap on the faces of Ghanaian traders, further asserting that any attempt to review the GIPC Act 2013 will spell economic and security doom for the country.
“The trading community in Ghana wants this law, and it should be made clear. Traders in Ghana might seem to be gentle, but we must be careful because they are very passionate about this law. This law pulled the brakes on Nigerian retailers overtaking our markets. These exemptions will do us more harm than any good,” he opined.
A 12-member delegation from Nigeria last year met with Ghanaian officials to resolve the Ghana-Nigeria retail trade war once and for all after Ghanaian traders led by GUTA, closed down shops belonging to Nigerians.
Deliberations between governments of both countries led particularly by the respective House of Parliaments have led to the decision announced by Speaker of Ghana’s Parliament, Alban Bagbin to the Nigerian Parliament.
