Reflecting on AfCFTA Implementation in Nigeria
By Yusuf Issa An-Nuphawi
As the African Continental Free Trade Area (AfCFTA) implementation in Nigeria continues in full swing, 2024 was a year of significant progress. The sustained commitment and proactive engagement with sub-national, regional and international stakeholders, ensures that Nigeria is well-positioned to capitalize on the vast opportunities within the billion population market, Yusuf Issa An-Nuphawi writes from Kano.
As we enter 2025, policymakers, trade experts and stakeholders in Nigeria’s trade sector reflect on the progress made and the challenges ahead for the implementation of the AfCFTA. This ambitious initiative aims to increase intra-Africa trade, raise Africa’s income by up to $450 billion by 2035, and lift 30 million Africans out of poverty, according to the International Monetary Fund (IMF).
It is observed that, for the Nigeria AfCFTA Coordination Office being the vanguard of the implementation of the AfCFTA in Nigeria, under the leadership of the National Coordinator, Mr. Olusegun Awolowo, 2024 marked a significant milestone. With the approval of President Bola Ahmed Tinubu, to re-caliberate the governance for efficiency, it is believed that the Nigeria AfCFTA Coordination Office is well positioned to coordinate AfCFTA trade activities, enhance export and import facilitation, and strengthen regional integration.
it is the responsibility of government to create effective policies, which is vital in ensuring continuity, safeguarding rights, and safety. Accordingly, Nigeria is proactive in giving the necessary impetus for the effective implementation of the AfCFTA. It is activating concrete processes to put in place the legal frameworks which aligns with the AfCFTA provisions. In this regard, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has reaffirmed his commitment to the success of AfCFTA in Nigeria and the eventual transmission of the AfCFTA commitment document for gazetting from his office to Mr. President for approval. The Nigeria AfCFTA Coordination Office has applauded the Federal Government for demonstrating leadership and commitment in the AfCFTA to gazette the ECOWAS Provisional Schedule of Tariff Concession.
A significant achievement in 2024 was the export of Nigeria’s first consignments under the AfCFTA Guided Trade Initiative (GTI) to Kenya, by a company called Luck Fibers Limited, a subsidiary of the Tolaram Group of companies. This demonstrates President Tinubu’s commitment to economic diversification, boosting export revenues, addressing the national budget deficit, strengthening foreign reserves, African single market, and economic integration in Africa. Nigeria, with its large consumer market, stands to benefit greatly from increased trade within the African continent.
Under the Guided Trade Initiative (GTI), ten companies piloted trading by Nigeria, asserting its leadership on the continent, with Lelook House of Bags becoming the first recipient of the AfCFTA Certificate of Origin. This was a crucial moment, particularly for women entrepreneurs participating in driving economic growth. Mr. Awolowo of the Nigeria AfCFTA Coordination Office commenting on the event, succinctly said: “It sets the stage for a new era of trade and prosperity for our country under AfCFTA.”
Turning to stakeholders engagement on the AfCFTA in 2024, several discussions and fora organised activities around the AfCFTA across the country. The Nigeria AfCFTA Coordination Office, in line with its mandate, ramped up engagement with stakeholders through, organizing workshops, training, and conferences aimed at advancing understanding of the AfCFTA and the opportunities it offers to Nigerians and the business community in particular. The Coordination Office actively engaged with private sector players and policymakers, fostering confidence in the AfCFTA and its potentials. Although these are applauded, there is a need to do more and to intensify momentum specially having regard to the ever evolving nature of the AfCFTA and the declaration for its accelerated implementation by State Parties.
Furthermore, as part of the engagement of the the Coordination Office, it participated in the 5th All-Africa Intellectual Property Summit in Kigali, Rwanda, emphasizing the importance of protecting Intellectual Property Rights (IPRs) to unlock Africa’s economic potential. Mr Olusegun Olutayo, Senior Trade Expert/Lead at the Nigeria AfCFTA Coordination Office, advocated for an African IP regime that allows innovators to protect their intellectual property across the continent, ensuring recognition and commercialization. Olutayo also called for harmonizing IP systems to support AfCFTA’s goal of sustainable economic development.
Read Also:
At the second AfCFTA Business Forum, Biashara Afrika 2024, held in Kigali, Nigeria reaffirmed its role as a leading African economy with a robust market population. The forum, themed “Dare to Invent the Future of AfCFTA,” provided a dynamic platform for dialogue between African governments, private sectors, and multinationals. Two women owned Nigerian businesses participated in the fortum.
During the Nigeria PAPSS Roadshow which was organised by PAPSS Secretariat, in collaboration with Institute of Chartered Accountants of Nigeria and the Nigeria AfCFTA Coordination Office, Mr. Awolowo in his remarks highlighted the importance of the Pan-African Payment and Settlement System (PAPSS) which is a critical component and tool by the implementation of the AfCFTA, in facilitating cross-border transactions. He urged Nigerian banks to integrate PAPSS into their operations, stressing its potential to reduce trade costs, streamline processes, and enhance financial inclusion. The Senior Trade Expert/Lead in a closing remark, added at the Roadshow that, PAPSS is the future of payments in cross border trade.
The Nigeria AfCFTA Coordination Office also contributed to discussions on the AfCFTA Digital Trade Protocol, which aims to accelerate technology-driven innovation across Africa. This protocol, adopted at the 37th African Union Summit in February 2024, addresses key issues such as data governance, cybersecurity, and emerging technologies, positioning digital trade as a cornerstone of intra-African commerce.
At a workshop on maritime cooperation with China, the Senior Trade Expert/Lead, Mr. Olutayo emphasized the need for a secure maritime environment to unlock AfCFTA’s full potential. This collaboration seeks to enhance vocational training and skills transfer, strengthening the maritime sector for better trade facilitation.
Speaking in the 2024 FATE Foundation Annual Dialogue in Lagos, the National Coordinator, Mr. Awolowo delivered a keynote address in which he emphasized the critical role of digital transformation and inclusive finance in empowering Nigeria’s entrepreneurs under AfCFTA. He underscored the importance of formalizing the informal sector to unlock its potential in the $3.4 trillion AfCFTA market.
In 2024, the Nigeria AfCFTA Coordination Office sub-national engagements covered four states – Kwara, Jigawa, Lagos and Oyo State. The engagements include a visit to the Coordination Office in Abuja by the Governor of Kwara who doubled as the Chairman of the Nigerian Governor’s Forum, the visit by the Oyo State Governor, HE Seyi_Makinde, the visit by the Lagos State Commissioner for Commerce, Cooperative, Trade and Investment, and a visit by the delegation from the Coordination Office led by Olusegun Olutayo to the Jigawa State Governor HE Umar A. Namadi and the business community. These highlighted the vital role of sub-national governments in AfCFTA implementation. These engagements focused on creating an enabling environment for trade and investment promotion.
There were also strategic meetings with key stakeholders, such as the Governor of the Central Bank of Nigeria, Mr. Yemi Cardoso and the Managing Director/CEO, Bank of Industry, Dr. Olasupo Olusi, to establish an AfCFTA Readiness Fund for Nigerian businesses. This initiative aims to align AfCFTA implementation with Nigeria’s broader inclusive and sustainable economic growth strategy.
The Nigeria AfCFTA Coordination Office further strengthened its efforts with a capacity-building workshop in collaboration with the Nigerian Institute of Advanced Legal Studies (NIALS), aimed at empowering legal advisers to support the successful domestication of AfCFTA.
In 2024, the Nigeria AfCFTA Coordination Office also engaged with the Nigeria Export Promotion Council (NEPC) to expand Nigeria’s export base and enhance capacity building for exporters. This aligns with the government’s goal of full utilization of AfCFTA’s trade benefits.
Critical for the year was the engagement with the Nigeria Customs Service as the Designated Competent Authority (DCA) for Nigeria. The workshop aimed to prepare and ensure the readiness of the DCA towards issuance of the AfCFTA Certificate of origin and effective implementation of the agreement at the border.
As Nigeria’s AfCFTA implementation journey continues in full swing , 2024 was a year of significant progress accentuated by the sustained commitment of all stakeholders led by the Nigeria AfCFTA Coordination Office with the visionary support of President Bola Ahmed Tinubu. The country’s proactive engagement with sub-national, regional and international stakeholders, coupled with a focus on digital transformation, intellectual property protection, and financial inclusion, ensures that Nigeria is well-positioned to capitalize on the vast opportunities within the billion population and trillion dollar market.
Yusuf Issa An-Nuphawi writes from Kano. He can be reached through [email protected] or 07031576149
