BusinessHow Nigerians Can Benefit From $3.4trn AfCFTA Economy – Experts

How Nigerians Can Benefit From $3.4trn AfCFTA Economy – Experts

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SAN FRANCISCO, December 25, (THEWILL) – Ahead of the January 1, 2021 takeoff of the African Continental Free Trade Agreement (AfCFTA), Minister of Industry, Trade and Investment, Adeniyi Adebayo has stressed the need for Nigerians, especially industrialists to take advantage of opportunities inherent in the economic bloc to promote Made-in-Nigeria goods.

The minister, in a statement by his Special Assistant on Media, Ifedayo Sayo, said Nigeria could not afford to be left out of the emerging African economic block, stressing that AfCFTA would form a $3.4trn economic bloc, which Nigeria must play a leading role.

The commencement date will signal the beginning of the implementation of a single continental market for goods and services, with free movement of business persons and investments across Africa.

“The journey started on July 7, 2019, when Nigeria became the 53rd African country to sign the AfCFTA treaty”, the minister recalled.

“Long before then, it has always been the dream of Nigeria and Africa’s founding fathers to unite the Continent in one, shared prosperity.

“The African Continental Free Trade Area Agreement will form a 3.4 trillion dollars economic bloc, which Nigeria cannot afford to be left out of.
“We have worked tirelessly to ensure that Nigeria not only partakes as a signatory in name but become a major trade and economic powerhouse, even more than we have been within the ECOWAS region.”

Director-general, Lagos Chamber of Commerce and Industry (LCCI), Dr. Muda Yusuf, said the only way Nigeria could maximise the benefits of AfCFTA is to increase the total value and volume of non-oil exports by scaling up productivity in the real sector of the economy.

“If you look at the structure of our export, it is about 95 percent oil and gas, the remaining five percent is for agric and manufacturing, most of which goes to the neighbouring countries.”, Yususf said.

“So, if we are going to trade internationally, it is not just about import, it is also about export. So what exactly are we going to put on the table if the only thing you have is oil and gas? How will that benefit the economy?

“We need to scale up very rapidly, issues of productivity in the real sector of the economy. If we don’t strengthen that, we will not be able get the right kind of value that we need to get.”

Adedayo Bakare, a Lagos-based economist agreed with Yusuf. He said, “Perhaps now, the country will invest strongly in its non-oil sources of income. Because we have a country that is not doing enough to care for its citizens and a world that is moving quickly to be efficient in how it trades and perhaps leaving Nigeria behind.”

Established on May 30, 2018, the agreement has been signed by 54 AU member countries and ratified by 31 AU member countries, including Nigeria in July 2019 and November 2020, respectively. AfCFTA is expected to help expand Nigeria’s inter-trade portfolio, boost competitiveness, and increase gross domestic product (GDP).

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