There are indications that Nigeria may start trading under the Guided Trade Initiative (GTI) of the African Continental Free Trade Agreement (AfCFTA) in June, despite several failed attempts to meet previous deadlines.
Recall that Nigeria had missed crucial deadlines for joining the AfCFTA. The country was not part of the first group of nations which began trading under the GTI in August 2023. Reasons for the delay include unresolved protocols and a need to improve infrastructure for smoother trade facilitation. Nigeria also missed the trading date for the launch of the second phase of GTI, which allowed countries like Rwanda, Cameroon, Egypt, Ghana, Kenya, Mauritius, Tanzania, and Tunisia to commence trading.
In a recent discussion, Mr. Ambrose Oruche, a former acting Director General of the Manufacturers Association of Nigeria (MAN), confirmed that AfCFTA has set June for the commencement of trading under the GTI for Nigeria. He attributed the delay in trading to issues within the AfCFTA Secretariat in Ghana, rather than domestic factors.
Responding to inquiries about the current lull resulting from delays and missed deadlines, Mr. Oruche stated, “I don’t think the lull is a Nigeria thing; I think it’s about the AfCFTA secretariat. And I don’t think a person like Mr. Segun Awolowo, who has been in the export corner for years, would not know what he is doing. It is just that so many factors have affected the take-off, the issue of Forex and all that. But Nigeria will start trading under the GTI in June”, he affirmed.
Dr. Muda Yussuf, another industry expert, acknowledged Nigeria’s slow progress in joining AfCFTA. He highlighted concerns among manufacturers regarding competitiveness due to challenges such as high production costs and inadequate infrastructure. He also noted a lack of enthusiasm among economic players, citing the difficulty Nigerian manufacturers may face in competing with counterparts from countries with lower production costs and better infrastructure.
When asked if replacing the National Action Committee chair would resolve the issues, Dr. Yussuf emphasized the complexities involved in driving AfCFTA effectively. He pointed out that without sufficient authority over factors affecting trade outcomes, such as ports, customs, and manufacturing, it would be challenging for any individual to expedite the process. He emphasized the need for strong presidential backing to overcome these challenges.
“No, the problem is that when you are given a responsibility over which you don’t have too much authority over the variables or factors affecting the outcome, it can be very difficult. Unless there is a very strong presidential backing to push it, there is very little he can do.”
Efforts to reach Mr. Segun Awolowo for comments were unsuccessful as calls and text messages were unanswered.
