Nigeria sees trade pact as means to bolster leadership in Africa
ABUJA, Nigeria — The Nigerian government has described the ratification of its membership of the African Continental Free Trade Area Agreement, or AfCFTA, as a step forward for the country to prove its economic leadership in the continent.
“This is a huge step forward for the nation, and to further demonstrate to the world, Nigeria’s economic leadership position on the African continent,” said Adeniyi Adebayo, the minister of industry, trade, and investment, in a statement on Thursday.
The Nigerian government ratified its membership of the AfCFTA on Wednesday, beating the Dec 5 deadline set for all countries to make valid their membership of the intra-Africa trade deal.
Nigerian President Muhammadu Buhari personally supervised the ratification process during the weekly Federal Executive Council meeting.
The trade agreement aims to create a single continental market for goods and services, with free movement of business persons and investments within the African region.
Adebayo confirmed that the instrument of ratification is already being prepared by the government, through the AttorneyGeneral of the Federation and Minister of Justice.
“The instrument of ratification would be prepared for President Buhari’s assent for onward transmission to the African Union, the legal depository of all instruments of ratification,” he said.
On July 7 last year, Nigeria signed the AfCFTA agreement in Niamey, Niger, during the 12th extraordinary session of the Assembly of the African Union.
The operational phase of the AfCFTA was launched on the same day.
Delayed start
The effective date for the agreement to come into force ought to have been July this year, however, it was postponed to Jan 1 as a result of the COVID-19 pandemic.
All member states were given up to Dec 5 to ratify the agreement.
“Nigeria joins other African nations who have already ratified the agreement to become a State Party to the agreement. … Nigeria is on course to participate in trading under the AfCFTA region,” Adebayo said.
In September, the Nigerian Investment Promotion Council, or NIPC, said the country is more ready for the AfCFTA due to Nigeria’s domestic market manufacturing value addition capacity which it claimed is seven times the average of the top 20 economies in Africa and other.
“Nigeria’s large domestic market makes Nigeria an ideal gateway economy,” said Yewande Sadiku, head of the NIPC.
Economists believe AfCFTA is an opportunity to plot, organize, strategize, and mobilize African economies for growth that has suffered a major blow due to the COVID-19 pandemic.
“Effectively, we hope that by Jan 1, the agreement will come into force,” Lai Mohammed, the Nigerian minister for information and culture, told reporters in Abuja on Wednesday.