Nigeria has demonstrated readiness to raise its productivity level and lift the manufacturing sector, with the first shipment under the African Continental Free Trade Area (AfCFTA).
The shipment is expected to bolster continental trade and enable Africa’s most populous nation to leverage the AfCFTA opportunity.
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.
Represented by George Akume, secretary to the Government of the Federation, Tinubu 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 Mr President, Nigeria must be prepared to be innovative, and efficient and strive to excel as trade has inherently become highly competitive and Nigeria we cannot become complacent.
Read also: What to know as Nigeria prepares to enter the AfCFTA Guided Trade Initiative
Also speaking, Olusegun Awolowo, national coordinator of the AfCFTA Coordination Office, 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, Doris Uzoka-Anite, minister of Industry, Trade and Investment, 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.
Adewale Adeniyi, comptroller general of Customs, 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.
Represented by CK Niagwan, deputy comptroller of Customs in charge of tariff and trade, 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.
Wale Edun, minister of Finance and Coordinating Minister of the Economy, said 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.
