Nigeria targets $50bn economic upswing with AfCFTA trade debut

Onome Amuge

Nigeria has officially commenced trade under the African Continental Free Trade Area (AfCFTA) agreement, reaffirming its dedication to maximising the potential benefits of the agreement for both small and large Nigerian businesses.

With a projected $50 billion in benefits, the Nigerian government sees the AfCFTA as an opportunity to tap into the African market, expand the reach of its domestic businesses, and boost the overall economy.

President Bola Tinubu’s administration took the major initiative towards enhancing intra-African trade and economic diversification at the implementation of the African Continental Free Trade Area Nigeria’s inaugural shipment during the Guided Trade Initiative (GTI) framework and ribbon-cutting ceremony, in Apapa, Lagos. 

Tinubu, who was represented by George Akume,the secretary to the government of the federation, spoke on the significance of the AfCFTA GTI, describing it as a crucial step towards reaping the benefits of increased trade and economic cooperation between African nations.

Akume  underscored the transformative potential of the AfCFTA to reshape Africa’s economic performance, describing it as a necessity for Nigeria’s economic development. He acknowledged the need for unwavering commitment and determination in making the AfCFTA work in the country’s favour.

Moreover, the secretary to the government of the federation, assured the Nigerian business community of the federal government’s continuous support, pledging to help enterprises at all levels capitalize on the vast opportunities presented by the AfCFTA.

“The commitment to this agreement is unwavering because we understand that making AfCFTA work is not an option, it is a necessity. Implementing AfCFTA will not be easy but we are ready to confront these challenges head on with uncommon determination. 

“We will create an enabling environment that supports businesses, encourages innovation and forces competitiveness. We will work closely with our continental partners to ensure that the benefits of AfCFTA are equitably distributed and no one is left behind,” he stated. 

Akume further underscored the importance of a collaborative approach in unlocking the full potential of the AfCFTA for Nigeria’s economic benefit. In his remarks, he noted that realising the full potential of the AfCFTA would require the concerted efforts of the public, private sectors, and individuals.

Reiterating  the President Tinubu-led administration’s firm resolve to make the AfCFTA a success, Akume called on all stakeholders to join hands and work together towards achieving the vision of a robust and prosperous African economy.

Providing further details about the Guided Trade Initiative, Olusegun Awolowo, the coordinator of the National AfCFTA Coordination Office, stated that within the coming days, 10 Nigerian companies would begin exporting homemade products to various countries in East, Central, and North Africa. 

According to Awolowo, the initiative would facilitate intra-African trade and promote the export of locally produced goods and services to other African countries, further stimulating economic growth and enhancing regional integration.

“The companies are 10 in number, and over the next few days, weeks, and months they will be exporting Nigerian products to five countries across East, Central, and North Africa,” he stated.

According to the former executive director of the Nigerian Export Promotion Council (NEPC), the companies have set a new benchmark for other businesses to emulate, adding that the companies represent the very essence of Nigeria’s unique identity, characterised by resilience, innovation, and entrepreneurial spirit.

Awolowo listed the Nigerian companies that will be exporting products under the AfCFTA agreement, including: Le Look Nigeria Limited, exporting bags to Kenya; Secure ID Limited, exporting smart cards to Cameroon; Dangote Industries Limited, exporting clinkers to Cameroon; Avila Naturalle, exporting black soap and shea butter to Kenya.

The coordinator of the National AfCFTA Coordination Office mentioned other Nigerian companies that have been selected to export under the AfCFTA agreement to include: Flour Mills Nigeria Limited, exporting native starch to Algeria; Craft Methods Limited,exporting alcoholic bitters to Uganda; Ruchim Limited, shipping SIM and bank cards to Kenya; Tolaram Group, exporting wrappers to Egypt; and Hwani Industry Nigeria Limited, exporting water closet sanitary sets to Kenya.

Addressing participants and stakeholders at the event, Doris Uzoka-Anite, the minister of industry, trade & investment, highlighted the potential of the AfCFTA as the largest free trade area in the world, comprising 54 African countries and over 1.3 billion people. 

According to Uzoka-Anite, the AfCFTA is a significant opportunity for Nigeria to advance industrialisation, economic diversification, and job creation.

The minister also noted that the agreement holds immense promise not just for Nigeria but for the entire African continent, and urged all stakeholders to maximise the benefits of this historic agreement.

“The immense opportunities that AfCFTA holds for Nigeria are vast and by extension, it holds the same promise for the entire African continent. We must all join hands to ensure that the AfCFTA delivers for our people , driving sustainable growth and development,”  she added.