Post by Trade Forum on Mar 7, 2022 9:22:02 GMT 1
African Continental Free Trade Area (AfCFTA): Is Nigeria Ready To Seize The Opportunities Offered?
The truth is that trading under the African Continental Free Trade Area (AfCFTA) started on January 1st 2021. It is more than one (1) year now, how prepared are Nigerian government agencies that are supposed to drive the programme and the private sector?
As far as the country has signed the agreement, we are bound by the contents of the agreement; the question is, how prepared are we as a country.
We are aware that some countries are already strategically positioning their government agencies and the private sector to make the best out of this novel programme.
What are the recent developments within and outside the country to show that the country is ready to live to its billing as the biggest potential beneficiary of the economic block that seeks to unlock a market of 1.2 billion Africans with a combined Gross Domestic Product (GDP) of $3 trillion?
Nigeria has been pointed at by the international community as the biggest potential beneficiary of the African Continental Free Trade Area (AfCFTA) even before the President Muhammadu Buhari signed the agreement on July 7, 2019.
To sign the agreement, it took the country 16 months of foot dragging after many smaller countries have signed.
Nigeria as a country has over two hundred million (200) million people; this type of population is a huge market for trade.
Without gainsaying the fact, Nigeria as the single largest market in Africa stands to gain a lot from the expected increased access of its goods and services to a wider African market without hindrances.
A lot of people have already been thinking aloud that Nigeria will use this opportunity to scale up its manufacturing sector and possibly take over from China as the major source of manufactured goods to Africa.
This is an opportunity that is too juicy to miss; it is so glaring and almost sure under the AfCFTA).
Knowing fully well the good intention of setting up such big market place to create the world’s largest free trade area that integrates 1.3 billion people across 54 countries with the objective of tapping into $3 billion GDP; this is really an opportunity to remake Africa. This will surely put African economies and its citizens on a better and envious economic condition.
This is what the agreement is intended to achieve for African countries: the agreement commits to removing tariffs on 90% of goods, and incrementally apply the same to services. And the removal of tariffs on goods in particular is projected to increase the value of intra-African trade by 15-25 per cent by 2040. This will translate to between $50 billion to $70 billion in value.
The AfCFTA commenced a little more than a year ago, how has the giant of Africa fared? Arguably, Nigeria is Africa’s most populous and largest market. But what has the country done in concrete terms to take advantage of the AfCFTA?
Remember that the President Muhammadu Buhari dragged his feet for 16 months before signing the agreement as the organized private sector warned that signing the agreement will cripple the economy of the country and leave many people unemployed. Why?
They argued that the agreement will turn Nigeria into a dumping ground for foreign imported goods. I am still lost on this as I believed that the country with huge industrial power will now harness it to take over the African market in strategic sectors.
Most African countries import goods at exorbitant prices because they do not have alternatives; if 90% of tariffs are removed, goods will become far cheaper for African nations to buy locally instead of engaging in expensive imports especially this period of difficult economic conditions.
In our next article on this topic, we will bring to you what Nigerian government officials and the committee set up for AfCFTA in Nigeria are doing to make the country reap the expected profit from the regional integration.
Be prepared as a member of this forum to play your own part in reaping the benefits of AfCFTA.
Our company is one of the best companies in importation business in Nigeria today, we train individuals and corporate organizations on how to do Major and Mini Importation business the right way; if you are interested, please contact the admin of this forum now.
The truth is that trading under the African Continental Free Trade Area (AfCFTA) started on January 1st 2021. It is more than one (1) year now, how prepared are Nigerian government agencies that are supposed to drive the programme and the private sector?
As far as the country has signed the agreement, we are bound by the contents of the agreement; the question is, how prepared are we as a country.
We are aware that some countries are already strategically positioning their government agencies and the private sector to make the best out of this novel programme.
What are the recent developments within and outside the country to show that the country is ready to live to its billing as the biggest potential beneficiary of the economic block that seeks to unlock a market of 1.2 billion Africans with a combined Gross Domestic Product (GDP) of $3 trillion?
Nigeria has been pointed at by the international community as the biggest potential beneficiary of the African Continental Free Trade Area (AfCFTA) even before the President Muhammadu Buhari signed the agreement on July 7, 2019.
To sign the agreement, it took the country 16 months of foot dragging after many smaller countries have signed.
Nigeria as a country has over two hundred million (200) million people; this type of population is a huge market for trade.
Without gainsaying the fact, Nigeria as the single largest market in Africa stands to gain a lot from the expected increased access of its goods and services to a wider African market without hindrances.
A lot of people have already been thinking aloud that Nigeria will use this opportunity to scale up its manufacturing sector and possibly take over from China as the major source of manufactured goods to Africa.
This is an opportunity that is too juicy to miss; it is so glaring and almost sure under the AfCFTA).
Knowing fully well the good intention of setting up such big market place to create the world’s largest free trade area that integrates 1.3 billion people across 54 countries with the objective of tapping into $3 billion GDP; this is really an opportunity to remake Africa. This will surely put African economies and its citizens on a better and envious economic condition.
This is what the agreement is intended to achieve for African countries: the agreement commits to removing tariffs on 90% of goods, and incrementally apply the same to services. And the removal of tariffs on goods in particular is projected to increase the value of intra-African trade by 15-25 per cent by 2040. This will translate to between $50 billion to $70 billion in value.
The AfCFTA commenced a little more than a year ago, how has the giant of Africa fared? Arguably, Nigeria is Africa’s most populous and largest market. But what has the country done in concrete terms to take advantage of the AfCFTA?
Remember that the President Muhammadu Buhari dragged his feet for 16 months before signing the agreement as the organized private sector warned that signing the agreement will cripple the economy of the country and leave many people unemployed. Why?
They argued that the agreement will turn Nigeria into a dumping ground for foreign imported goods. I am still lost on this as I believed that the country with huge industrial power will now harness it to take over the African market in strategic sectors.
Most African countries import goods at exorbitant prices because they do not have alternatives; if 90% of tariffs are removed, goods will become far cheaper for African nations to buy locally instead of engaging in expensive imports especially this period of difficult economic conditions.
In our next article on this topic, we will bring to you what Nigerian government officials and the committee set up for AfCFTA in Nigeria are doing to make the country reap the expected profit from the regional integration.
Be prepared as a member of this forum to play your own part in reaping the benefits of AfCFTA.
Our company is one of the best companies in importation business in Nigeria today, we train individuals and corporate organizations on how to do Major and Mini Importation business the right way; if you are interested, please contact the admin of this forum now.
