Analysts: Infrastructure Deficiencies Will Impede AfCFTA Gains
Several logistics experts have stated that Nigeria may not benefit fully from the $3.4tn African Continental Free Trade Agreement (AfCFTA) due to infrastructure deficiencies.
These experts spoke in Lagos at the 2024 Maritime Reporters Association of Nigeria Annual Lecture themed, ‘AfCFTA’: Dismantling barriers, navigating regional trade’ .
Speaking during the event, the President of the Nigerian Indigenous Shipowners Association, Mr Sola Adewunmi, disclosed that the country does not have the needed facilities to be able to benefit from the agreement.
“Because when you have those goods and there are no means of transporting them, then what is the essence of having them? And we shipowners keep on asking ourselves how prepared are we for this task. Because we realize that we don’t have the facilities to harness AfCFTA benefits.
“And I hope that we use the opportunity of this interaction to speak to the authority, to let them know that Nigeria as a nation if we want to benefit from AfCFTA, we must get prepared in terms of acquisition of new vessels to suit those purposes,” he said.
He lamented that many investors in Nigeria were losing money daily due to poor government policies.
“Every day our fortunes keep on dwindling. Dwindling in the sense that people are losing money due to bad policies and inadequate funding,” Adewunmi said.
According to him, shipping is a specialised trade and if you want to see indigenous shipowners compete with the big shipping nations, there is a need to give some sort of incentive that will make, “us to be able to do so.
“I can’t imagine a Nigerian shipowner saying he wants to compete with somebody that is getting a loan at a better rate.”
Earlier, the former Vice President of the Association of Nigerian Licensed Customs Agents, Dr Kayode Farinto, stated that for AfCFTA to succeed, government agencies should priotise trade facilitation even when there is pressure on revenue generation.
He added that in the area of logistics management, the nation’s maritime industry has not fared well.
“This is because logistics entails the involvement of a multimodal transport system but our reliance on the road alone is a stumbling block and a barrier to the free flow of trade.
“The Ministry of Marine and Blue Economy needs to liaise with the Ministry of Trade either on private party agreement or take it as a core responsibility to ensure that our over-reliance on the road is stopped,” Farinto said.
On his part, the President of MARAN, Mr Godfrey Bivbere, said AfCFTA represents a ground-breaking initiative by the African Union, designed to create a single market for goods and services, promote free movement across borders, and unlock the immense economic potential of our continent.
Bivbere, however, lamented that barriers such as inadequate infrastructure, “regulatory bottlenecks, and operational inefficiencies continue to hinder the seamless flow of goods across the continent.”
He pointed out that as the country embarks on the journey, it is pertinent to remember the profound impact that the AfCFTA holds for our nation, and indeed, the continent at large.
“By breaking down barriers and fostering closer economic ties, we pave the way for unprecedented opportunities, growth, and prosperity,” he advised.
Earlier, the Minister of Marine and Blue Economy, Adegboyega Oyetola, stated that Nigeria is committed to ensuring that the full benefits of AfCFTA are harnessed.
Represented at the event by his Senior Special Adviser on Media, Ismail Omidpidan, Oyetola maintained that the government’s commitment to AfCFTA has created new export opportunities for the marine sector.
He disclosed that under the Guided Trade Initiative, Nigeria has already commenced shipments, paving the way for increased trade flows across Africa.
Oyetola stated that in July the government recorded a significant milestone following the inaugural shipment ceremony under the Guided Trade Initiative of the AfCFTA stressing that the move was a crucial step towards an enhanced trade and economic cooperation on our continent.
“In today’s interdependent and globalised world, efficient and cost-effective maritime transportation systems that link global supply chains are the engine that would ultimately fuel economic development and prosperity,” he said.
According to the minister, by promoting intra-Africa trade through the removal of national barriers, doors of opportunities are opened for businesses to reach continental markets, thereby fostering industrialisation, job creation, and economic growth.
“This underscores the need for investment in port infrastructure and improvement in our institutional capacities for management and administration.
“This is the rationale for the current thrust of the ministry and its agencies’ drive on port modernisation. Investments in physical facilities must be complemented with process and system improvements,” he said.
A few months ago, Nigeria flagged off its participation in the AfCFTA under the Guided Trade Initiative.
