Due to dearth of infrastructure, inconsistencies in policy, analysts and sayings of some members of the organised private sector, there are indications that Nigeria may not benefit as expected from the ongoing Africa Continental Free Trade Agreement (AfCFTA).
According to Prof. Benedict Oramah, President/Chairman, Board of Directors, Afreximbank, AfCTA will require adjustment at country, sector and firm levels in response to shift in competitiveness, adding that companies which are nimble can adjust more quickly and become early gainers while those who are not, may not face survival challenges.
He stated, “It is expected that by 2022, AfCFTA will bring the share of intra-African trade to 22 percent, up from current of 16 percent and bring total intra-African trade to about $250 billion from about $160 billion currently. Since manufacturers account for 60 percent of total intra-African trade, intra-regional trade in manufacturing can rise to more than $150 billion by 2022. The opportunity for African manufacturers is therefore phenomenal.”
In an interview with The Nation, Prof. Jonathan Aremu, an economist, stated that some members of Manufacturers Association of Nigeria (MAN) affirmed that Nigerian manufacturers may not benefit immediately from the $10billion intra-African market, as a result of local policies and infrastructural levels, amongst other challenges.
Waxing philosophical, Aremu who consults for several multilateral organisations warned that the current war is competitive, adding that countries that cannot compete will be left out from the continental trade.
Echoing similar sentiments, the Chairman of Non-Metallic Mineral Producers of MAN, Mr. Mallison Ukatu, the government should put in place policies that will deter member countries from turning Nigeria into dumping ground.
Ukatu expressed that except the right policy and enforcement is pursed, the country would continue to express high level of smuggling.
