Post by Trade facilitator on Nov 22, 2023 17:10:51 GMT 1
Five years ago, the African Continental Free Trade Area (AfCFTA) emerged as a revolutionary agreement facilitated by the African Union (AU), and ratified by 44 out of 55 member states in Kigali, Rwanda, on March 21, 2018.
The AfCFTA operational phase however, officially commenced on January 1, 2021, with its oversight and implementation entrusted to a permanent secretariat based in Accra, Ghana.
Nigeria’s proactive efforts to align its fiscal policies with AfCFTA are commendable. It extends beyond infrastructure development to encompass trade facilitation, led by the Nigeria Customs Service, while balancing revenue generation expectations.
According to the World Bank, “AfCFTA offers the prospect of uplifting 30 million people from extreme poverty and boosting the incomes of 68 million individuals living on less than $5.50 per day.
“Implementing AfCFTA’s trade facilitation measures, aimed at simplifying customs procedures and reducing red tape, holds the potential to generate $292 billion of the projected $450 billion in potential income gains, while also initiating crucial reforms for sustained growth across African nations.”
The AfCFTA agreement serves as a blueprint for policymakers in the African continent, guiding them to maximize gains while mitigating associated risks. Establishing a continent-wide market necessitates a concerted effort to minimize trade costs.
Amidst global trends leaning towards deglobalisation, the unity of African nations in forming a free trade area offers a message of hope, dismantling barriers to the free flow of goods, services, investment, and ideas across borders. Spanning 55 countries and uniting 1.46 billion people, Africa’s combined GDP of US$3 trillion comparable to India’s, showcases its rapid growth potential.
Research by the World Bank indicates AfCFTA’s potential to significantly reduce extreme poverty by 2035, lifting 50 million people out of destitution and expanding incomes by US$571 billion, primarily through increased intracontinental trade.
The creation of a single market holds promise, particularly for Africa’s youth, projected to represent 42 percent of the world’s youth by 2030.
Nigeria’s enthusiastic embrace of AfCFTA promises a myriad of opportunities, including expanded market access, heightened employment prospects, increased export potential, and overall economic growth. The Presidential National Action Committee on AfCFTA (NAC-AfCFTA) plays a vital role in ensuring successful implementation, paving the way for a brighter future.
To contextualize Nigeria’s gains within the broader landscape of continental trade agreements, the Customs Comptroller General, Bashir Adewale Adeniyi, has outlined the alignment of Nigeria with AfCFTA objectives, which is akin to the aspirations of other regional trade formations globally, such as the European Union (EU) and the Association of Southeast Asian Nations (ASEAN).
In comparison, AfCFTA aims to unite African nations to create the world’s largest free trade area, fostering intra-African trade and economic development. Nigeria’s focus on addressing port congestion and streamlining clearance processes directly tackles challenges resonating within AfCFTA, aiming to enhance trade efficiency within the African continent.
According to Adeniyi, the AfCFTA presents a monumental opportunity for creating a vast marketplace, bolstering trade, attracting diverse businesses, and fostering economic growth. Nigeria, with its diverse sectors spanning agriculture to technology, oil and gas and many others, is well-positioned to harness this opportunity.
However, meticulous planning, sector-specific initiatives, and robust infrastructure investments are crucial for seamless trade within the AfCFTA framework.
Adeniyi’s focus on seeking establishment of sector-specific task forces reflects a strategic approach to identifying opportunities, addressing challenges, and devising tailored growth plans. Undoubtedly, policy alignment is crucial for AfCFTA’s success, and Nigeria’s commitment to crafting policies that align with continental objectives is essential.
Policy alignment, again offers Nigeria an opportunity to fortify its readiness by resolving challenges, streamlining regulatory processes, and enhancing the ease of doing business.
The Customs boss reiterated that this approach will open Nigeria’s economy, ranging from expanded market access to job creation, increased GDP, and foreign investment. The constitution of the National Action Committee on AfCFTA indicates Nigeria’s commitment to driving implementation and monitoring progress across various sectors.
Similarly, effective implementation and collaboration among member states remain vital for realizing the full potential of AfCFTA and enhancing foreign exchange earnings. Learning from the experiences of other trade blocs, Nigeria’s dedication to trade facilitation and export development positions the country strategically within AfCFTA, fostering regional economic growth and integration.
Source: prnigeria.com/2023/11/20/afcfta-nigeria-customs-bid/
The AfCFTA operational phase however, officially commenced on January 1, 2021, with its oversight and implementation entrusted to a permanent secretariat based in Accra, Ghana.
Nigeria’s proactive efforts to align its fiscal policies with AfCFTA are commendable. It extends beyond infrastructure development to encompass trade facilitation, led by the Nigeria Customs Service, while balancing revenue generation expectations.
According to the World Bank, “AfCFTA offers the prospect of uplifting 30 million people from extreme poverty and boosting the incomes of 68 million individuals living on less than $5.50 per day.
“Implementing AfCFTA’s trade facilitation measures, aimed at simplifying customs procedures and reducing red tape, holds the potential to generate $292 billion of the projected $450 billion in potential income gains, while also initiating crucial reforms for sustained growth across African nations.”
The AfCFTA agreement serves as a blueprint for policymakers in the African continent, guiding them to maximize gains while mitigating associated risks. Establishing a continent-wide market necessitates a concerted effort to minimize trade costs.
Amidst global trends leaning towards deglobalisation, the unity of African nations in forming a free trade area offers a message of hope, dismantling barriers to the free flow of goods, services, investment, and ideas across borders. Spanning 55 countries and uniting 1.46 billion people, Africa’s combined GDP of US$3 trillion comparable to India’s, showcases its rapid growth potential.
Research by the World Bank indicates AfCFTA’s potential to significantly reduce extreme poverty by 2035, lifting 50 million people out of destitution and expanding incomes by US$571 billion, primarily through increased intracontinental trade.
The creation of a single market holds promise, particularly for Africa’s youth, projected to represent 42 percent of the world’s youth by 2030.
Nigeria’s enthusiastic embrace of AfCFTA promises a myriad of opportunities, including expanded market access, heightened employment prospects, increased export potential, and overall economic growth. The Presidential National Action Committee on AfCFTA (NAC-AfCFTA) plays a vital role in ensuring successful implementation, paving the way for a brighter future.
To contextualize Nigeria’s gains within the broader landscape of continental trade agreements, the Customs Comptroller General, Bashir Adewale Adeniyi, has outlined the alignment of Nigeria with AfCFTA objectives, which is akin to the aspirations of other regional trade formations globally, such as the European Union (EU) and the Association of Southeast Asian Nations (ASEAN).
In comparison, AfCFTA aims to unite African nations to create the world’s largest free trade area, fostering intra-African trade and economic development. Nigeria’s focus on addressing port congestion and streamlining clearance processes directly tackles challenges resonating within AfCFTA, aiming to enhance trade efficiency within the African continent.
According to Adeniyi, the AfCFTA presents a monumental opportunity for creating a vast marketplace, bolstering trade, attracting diverse businesses, and fostering economic growth. Nigeria, with its diverse sectors spanning agriculture to technology, oil and gas and many others, is well-positioned to harness this opportunity.
However, meticulous planning, sector-specific initiatives, and robust infrastructure investments are crucial for seamless trade within the AfCFTA framework.
Adeniyi’s focus on seeking establishment of sector-specific task forces reflects a strategic approach to identifying opportunities, addressing challenges, and devising tailored growth plans. Undoubtedly, policy alignment is crucial for AfCFTA’s success, and Nigeria’s commitment to crafting policies that align with continental objectives is essential.
Policy alignment, again offers Nigeria an opportunity to fortify its readiness by resolving challenges, streamlining regulatory processes, and enhancing the ease of doing business.
The Customs boss reiterated that this approach will open Nigeria’s economy, ranging from expanded market access to job creation, increased GDP, and foreign investment. The constitution of the National Action Committee on AfCFTA indicates Nigeria’s commitment to driving implementation and monitoring progress across various sectors.
Similarly, effective implementation and collaboration among member states remain vital for realizing the full potential of AfCFTA and enhancing foreign exchange earnings. Learning from the experiences of other trade blocs, Nigeria’s dedication to trade facilitation and export development positions the country strategically within AfCFTA, fostering regional economic growth and integration.
Source: prnigeria.com/2023/11/20/afcfta-nigeria-customs-bid/
