By Oluyinka Onigbinde
It has been three months since Nigeria flagged-off its participation in the African Continental Free Trade Area (AfCFTA) under the Guided Trade Initiative (GTI) with an inaugural shipment on July 16, 2024.
While the move marked a significant milestone for Nigeria’s trade ambitions, stakeholders across the sector have voiced varied opinions about the progress and challenges faced since the launch.
In a chat with our correspondent, Mr. Segun Olutayo, Lead of the Trade Enablement Coordination Office at AfCFTA Nigeria, he expressed a cautiously optimistic outlook on the future of Nigeria’s trade under AfCFTA.
According to Olutayo, the government’s approval of name changes and restructuring to better align with AfCFTA underscores its commitment to the trade framework. He noted, that “the government is interested in AfCFTA because it has the potential to transform our economy, maybe not immediately, but in the long run, it could create jobs and prosperity if we scale up production and trade across borders.”
Reflecting on recent activities, Olutayo mentioned Nigeria’s participation in the Biachara Africa 2024 summit in Kigali, where Nigerian businesses showcased their offerings. “Nigeria has become a signature of high-skilled trade at the continental level,” he said. However, he acknowledged that the journey toward full implementation of AfCFTA is akin to a marathon, emphasizing the need for patience and sustained efforts.
He described the trade integration as “not an omelette that gets ready in 10 minutes, but a long journey that requires step-by-step progress.”
Olutayo also highlighted the crucial role of the Nigeria Customs Service (NCS) in the process, commending the efforts of the Comptroller-General of Customs, Bashir Adewale Adeniyi, in facilitating smoother trade operations and ensuring compliance with AfCFTA’s standards.
In contrast, Dr. Obiora Madu, Director-General of the African Centre for Supply Chain, criticized the slow pace. According to him, the challenges Nigeria faces in trade are rooted in a lack of an export culture and limited capabilities among potential exporters. He lamented,
“It’s not the lack of opportunities, but rather an absence of an export culture and knowledge.” Dr. Madu noted that while Nigeria is a leading producer of certain commodities globally, it has failed to leverage this advantage effectively in export markets.
He highlighted the disconnect between local production and export readiness, emphasizing that exporting raw materials does not necessarily translate to sustainable trade growth. “With the kind of products we have, we should not need to beg for access to global markets. Yet, many exporters lack the fundamental strategies needed to break into these markets,” he remarked.
Madu also raised concerns about the tariff and non-tariff barriers that continue to hinder trade, citing instances where Nigeria’s reputation abroad has affected business partnerships. He emphasized that overcoming these attitudinal barriers is crucial for Nigeria’s success under AfCFTA, stressing that the nation’s strength lies more in services than commodities.
Meanwhile at a recent workshop, National Coordinator of the Nigeria AfCFTA Coordination Office, Mr Olusegun Awolowo, praised the customs service for its proactive approach to facilitating trade stating, “We are so lucky that in Nigeria, our own customs has really geared up to the task.”
Awolowo highlighted the importance of leveraging technology to streamline customs operations, emphasizing that a client-centric approach would make trade processes more seamless for exporters.
He expressed confidence in Nigeria’s ability to meet its AfCFTA obligations, believing that the country would eventually shift from being seen as ready for AfCFTA to AfCFTA being ready for Nigeria.
Comptroller-General Bashir Adewale Adeniyi, represented by Deputy Comptroller-General Caroline Niagwan, also reaffirmed the Customs readiness for full implementation of AfCFTA.
Adeniyi expressed optimism that the full implementation would boost industrialization, job creation, and economic growth, stating that, “We are ready to implement… African exporters will benefit, and it will lead to sustainable development within the region.”
