The Nigerian Economic Summit Group (NESG) has commended the Federal Executive Council (FEC) of Nigeria under the president’s leadership for approving the ratification and domestication of the African Continental Free Trade Area (AFCFTA) Agreement after taking into consideration institutional, legal and economic structures.
In a public statement, the group mentioned that after the treaty was signed, the National Action Committee (NAC) was inaugurated to assess the modalities of the agreement and deduce how the terms of operation will ensure a favourable trade relationship between Nigeria and other countries
“This has allowed a greater number of stakeholders across the country to be properly briefed about the continental economic integration, and has allowed the economy to put in place institutional structures that are necessary conditions for effective implementation of the initiative in the country,” it read.
Read Also: Is commodities financing still profitable for African banks? (2)
According to the statement, despite the benefits of the agreement which includes a healthy competition to improve Nigeria’s efficiency, elimination of tariffs, quotas and monopolies, lower prices of goods, access to a variety of goods and services among others, concerns were raised on possible cases of intellectual theft, reduction in tax revenue through the termination of import duties, uncertainties in outsourcing labour to countries that do not have labour protection laws among other uncertainties
“Having weighed the various options, the trade creation and diversion effects of the regional fortress are expected to lead to attraction and development of continental transnational corporations headquartered in Nigeria, with affiliates around other African countries. Therefore, ratifying and domesticating the AFCFTA Treaty is a commendable move.
Consequentially, NESG called for the establishment of competent institutional structures and necessary infrastructure necessary for the effective implementation of the trade agreement.
The group urged that the ratification as well as other various policies which will be affected by the AFCFTA be forwarded to the National Assembly, to fully domesticate the Treaty across national Ministries, Departments and Agencies (MDAS)” it stated.
