The African Continental Free Trade Area (AfCFTA) presents a significant opportunity for Nigeria to grow its economy, but the country must take concrete steps to maximise its benefits.
Former president of the Association of Nigerian Licensed Customs Agents (ANLCA), Tony Nwabunike said this at the Association of Maritime Journalists of Nigeria (AMJON) 2024 annual conference and awards in Lagos.
Nwabunike emphasized that Nigeria’s large market size, with a population of over 223 million people, makes it a critical player in the AfCFTA. However, he noted that Nigeria must address several challenges to fully leverage the AfCFTA.
According to Nwabunike, some of the challenges facing Nigeria include modernising its borders, improving security, and enhancing trade infrastructure.
He stated that Nigeria’s borders are not smart, and the pace of modernisation has been slow. He also noted that no border in Nigeria meets the requirements to be called a smart border.
Despite the challenges, Nwabunike believes that Nigeria has the potential to be the biggest beneficiary country in AfCFTA and to become the China of Africa in terms of production.
He also emphasized the need for Nigeria to strengthen its diplomatic relationships with neighboring countries, particularly Niger, to facilitate trade and economic cooperation.
Nwabunike also highlighted the importance of the Trans-Saharan Gas Pipeline project, which aims to connect Nigeria’s gas fields to Europe via Algeria.
He noted that this project requires cooperation between Nigeria, Niger, and Algeria.
Furthermore, Nwabunike emphasized the need for Nigeria to liberalise its visa regime to facilitate travel and trade with other African countries.
He commended President Bola Tinubu for his recent move to South Africa to negotiate a soft visa issuance regime for Nigerian businessmen and tourists.
He urged that the same strategy be applied to other African countries outside the ECOWAS region.
Commenting on how to make the Nigerian Ports more export ready, Nwabunike pointed out that the Nigerian Ports Authority (NPA) should dedicate more space for exports and work towards reviving moribund legacy ports like Burutu, Sapele, Koko Port and Calabar Port.
Nwabunike emphasized that Nigeria has the potential to become the biggest beneficiary country in AfCFTA if it gets electricity right for industrialisation with safer fields for farmers and transborder traders.
The AfCFTA is expected to boost intra-African trade and increase Nigeria’s exports. The agreement is also expected to create a single market for the participating countries of over 1.2 billion people.
With the right policies and infrastructure in place, observers believe that Nigeria can become a major player in the global market and achieve its economic goals.
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