Nigeria Embarks on AfCFTA Trade with $50bn Economic Boost Potential

Samuel Mobolaji

Nigeria has proven its readiness to raise its productivity level and lift the manufacturing sector, leveraging the opportunities provided by the $50 billion African Continental Free Trade Area (AfCFTA).

With a combined population of 1.3 billion and a GDP of about $3.4 trillion, trade between African countries holds huge potential for Nigeria to actualise its industrialisation and economic diversification targets.

Speaking at the launch of the Guided Trade Initiative (GTI) and Nigeria’s inaugural shipment under AfCFTA protocol, President Bola Tinubu, said AfCFTA is not just a trade agreement but a bold vision for Africa’s industrialisation, equitable growth, and prosperity of Nigerians.

President Tinubu represented by the secretary to the government of the federation, George Akume, said Nigerians must embrace challenges ahead with enthusiasm and readiness to tackle them headlong in the interest of collective survival.

“The strategy to be deployed will include the creation of an enabling environment that supports businesses, encourages innovation, and fosters competitiveness. There will also be close collaboration with our continental partners to ensure the benefits of AfCFTA are equitably distributed,” he said.

According to the president, Nigeria must be prepared to be innovative, and efficient and strive to excel as trade has inherently become highly competitive and Nigeria cannot become complacent.

Also speaking, the national coordinator of the AfCFTA Coordination Office, Olusegun Awolowo, said each member state comprising 54 countries will leverage comparative advantages to achieve over $50 billion in intra-Africa trade under the AfCFTA.

He urged Nigerians to seize the opportunity offered by AfCFTA to grow the country’s production and productivity and to build an army of exporters.

He said the Federal Government has approved the transformation of the National Action Committee on the AfCFTA (NAC-AfCFTA) to a Nigeria/AfCFTA Coordination Office (NACO) with authority to deliver on the nation’s desired outcomes.

Giving a breakdown of the first shipment under AfCFTA protocol, Awolowo disclosed that about 10 exporters will be shipping Nigerian products to five countries across East, Central, and North Africa sub-regions.

“The companies include Dangote, Tolaram Group, Flour Mills Nigeria, Hwani Industry Nigeria Limited and among others. They will be exporting various made-in-Nigeria products including bags, smart cards, black soap, alcoholic bitters, shea butter, native starch, and water closet sanitary,” Awolowo said.

He added that the products will be exported to Egypt, Algeria, Uganda, Cameroon, and Kenya.

Meanwhile, the minister of Industry, Trade and Investment, Doris Uzoka-Anite, said the launch will create a single market for goods and services in Africa, and drive economic diversification, job creation, and economic growth.

Uzoka-Anite said the AfCFTA holds immense promise for thriving industrialisation.

“We must all join hands to ensure that AfCFTA delivers economic prosperity and growth for the people,” she said.

The comptroller general of Customs, Bashir Adewale Adeniyi, said Nigeria joined the AfCFTA in 2020, aiming to facilitate cross-border trade within Africa.

He said the Nigeria Customs Service (NCS) is a key member of the National Action Committee responsible for issuing certificates of origin and streamlining export cargo clearance.

Adeniyi, who was represented by the deputy comptroller of Customs in charge of tariff and trade, C.K Niagwan, said the Customs boss said AfCFTA participation will open new business and economic growth opportunities for Nigeria and strengthen African relationships.

He disclosed that due to delays in phase one, some African nations like Rwanda and Ghana have begun trading and that Nigeria studied the best practices of both countries to prepare for phase two participation.

“The NCS is prepared to fulfil its role as the Designated Competent Authority (DCA) and has taken actions including training of officers on AfCFTA rules of origin in collaboration with WTO experts; preparing and issuing certificates of origin (both paper and electronic formats; deploying officers trained in AfCFTA export procedures and designating specialised Customs ports for faster export clearance,” he explained.

On his part, the minister of Finance and Coordinating Minister of the Economy, Wale Edun, the launch is a clear signal to the world that Nigeria is ready to take its rightful place in the continental and global trade arena.

He said Nigeria is opening up new avenues for businesses to expand, innovate, and compete on a larger scale by embracing the AfCFTA. “Allowing commercially meaningful trading under the AfCFTA through this initiative will not only boost our exports but also attract foreign direct investment, create jobs, and enhance our overall economic resilience,” he said.