After months of anticipation that Nigeria will commence trading under the African Continental Free Trade Area (AfCFTA) by August this year, findings by Shipping Position Daily have confirmed another delay as Nigeria may not join the ranks of nations that have already started trading under AfCFTA until October 2023.
This is according to an exclusive update obtained by our correspondent from the National Action Committee (NAC) of AfCFTA. The committee, in a detailed memo sent to our correspondent, explained that contrary to speculations about the delay in commencement, Nigeria is making significant strides towards joining the elite list of nations trading under the AfCFTA.
Countries that have started trading are: Rwanda, Cameroon, Egypt, Ghana, Kenya, Mauritius, Tanzania and Tunisia.
While clarifying that Nigeria did not postpone the launch, the body said instead, the country embarked on the Guided Trade Initiative (GTI), an interim arrangement aimed at testing the legal framework and customs processes of participating state parties, before full implementation of the trade agreement.
The committee stated that GTI, which was officially launched on October 7, 2022, aimed to create a “solution-based approach” to ensure a smooth transition into the continental trade regime further stating that the initiative involves a selected group of seven State Parties during its initial phase, with ongoing preparations for the second phase that is set to include Nigeria and other African nations.
The NAC informed our correspondent that the new date for the launch of the Second Phase of GTI is now October 2023, stating that this aligns with Nigeria’s efforts to ensure that all necessary requirements and obligations are fulfilled before participating in the second phase of GTI.
Checks by our correspondent revealed that part of the checklist received from the AfCFTA Secretariat in Ghana stated that Nigeria needs to meet several key requirements to participate in the GTI fully.
These include being a State Party to the AfCFTA Agreement, having a technically verified and approved Schedule of Tariff Concessions, submission of authorized signatures and specimen stamps to the AfCFTA, gazetting of Schedules of Tariff Concessions, and the establishment of an Ad hoc or Standing AfCFTA coordination committee.
Moreover, the checklist also stated that Nigeria must nominate Designated Competent Authorities (DCA) to certify originating products, demonstrate willingness to mobilize and connect businesses with other members of the GTI, and provide notifications of the Required Non-Tariff Measures (NTMs) for export and import.
In defence, the National Action Committee has confirmed that Nigeria is diligently processing these requirements to ensure a smooth and successful entry into the second phase of GTI.
As part of the preparations, the committee said it is actively engaging stakeholders, including the public and private sectors, to create a coordinated framework that maximizes the benefits of AfCFTA for Nigeria.
Speaking about the GTI programme, the NAC on AfCFTA emphasized the significance of the initiative. It stated, “The GTI is more or less like a test of the AfCFTA, and so it is strictly on product at the moment, so with time we are going to scale it to services.”
The NAC explained that the GTI’s successful implementation will set the stage for Nigeria’s participation in the larger AfCFTA trading landscape adding that it is expected to enhance economic growth, create employment opportunities, and boost trade relations between Nigeria and other African countries.
But credible sources have hinted that Nigeria’s delayed participation is as a result of failure to meet the minimum requirements for trade under the agreement.
The requirements include submission of a Schedule of Tariff Concessions (STCs) to the AfCFTA Secretariat and approval of the same and gazetting of the STCs or Provisional STCs.
The sources explained that, even though the Guided Trade Initiative (GTI) was launched in September 2022 to match-make businesses and products for export and import between interested state parties that have met the minimum requirements for trade under AfCFTA, Nigeria has conveniently had reasons to delay.
Our sources confirmed that if Nigeria does not gazette the all-important Schedule of Tariff Concessions, she can not trade under AfCFTA.
However, reacting to the new date of trading under AfCFTA another a member of AfCFTA who pleaded anonymity attributed the delay to a transition in government and late appointment of a minister to oversee the actions.
He said the transition in government played a role in slowing down the process. He said with the change of administration, certain necessary documentation and policy reviews required for trading under AfCFTA needed to be addressed.
Additionally, he said the absence of a designated minister for trade and investment further compounded the delay.
He added that the ministerial vacancy resulted in a lack of central coordination and decision-making on trade-related matters, affecting the country’s progress in AfCFTA implementation.
He also assured that significant efforts are underway to overcome these obstacles and expedite Nigeria’s entry into AfCFTA trading. He stated that the government’s National Action Committee, in collaboration with private sector stakeholders, has been working diligently to develop a strategy for Nigerians to leverage the AfCFTA agreement fully.
