More experts support Nigeria’s assent to African Free Trade

It is no longer topical that African leaders with the exception of Nigeria and South Africa, have signed a framework agreement establishing the African Continental Free Trade Area, the largest free trade agreement since the creation of the World Trade Organization (WTO).

The ambitious agreement creates a single market for goods and services in Africa that is expected to include 1.7 billion people by 2030. The free trade area agreement will now go before national legislative bodies to finalize details for the organizational structure and formally approve the framework.

The African Union Commission estimates that the free trade zone could lead to an increase in intra-African trade of 52 per cent by 2022 and add over US$6.7 trillion of cumulative consumer and business spending if taken up by all African countries.

A total of 44 African countries signed the agreement at a ceremony in Kigali, Republic of Rwanda, of which at least 22 must now ratify it for the framework to progress.

The Organised private sector and the Manufacturers Association of Nigeria made several representations to the federal government, alleging that the agreement could be a back door approval for the Economic Partnership Agreement, which it has vehemently resist, as one that is capable of reversing our industrial growth.

Some expert considered the cancellation a major economic diplomacy somersault by the Federal Government.

In a renewed bid to get the buy in of wider stakeholders, The Director-General/ Chief Negotiator, Nigerian Office for Trade Negotiation, Ambassador Chiedu Osakwe, has urged the Organised Private Sector to endorse the signing of the African Continental Free Trade Area agreement, assuring them that it will create more jobs for Nigerians.

Osakwe gave the advice while presenting a paper on the agreement and its benefits to Nigeria during the Lagos Chamber of Commerce and Industry Stakeholders’ Forum on the ACfTA.

Osakwe noted the trade agreement would cover 1.2 billon Africans with Gross Domestic Product of $2.5tn and in 2050, it would cover four billion Africans, constituting 36 per cent of the global population.

He said that an economy like Nigeria would be larger than that of Australia in 32 years.

He added that with the agreement, intra-African trade which was currently at 16 to 17 per cent would be increased to 52 per cent with a corresponding GDP growth and increase in employment and job creation on the continent.

Speaking further, the Nigerian trade negotiator noted that every year, 18 million to 20 million Africans and one million Nigerians came into the job market.

“The bigger the size of businesses, the better for our producers, so one of the things that the CFTA does is to create a platform for the creation of value chains, bigger, better, stronger, more resilient and build a firm Nigeria economy,” he added.

On concerns which had been raised particularly by the organised labour that the agreement would strip Nigeria of its protection and open up to its borders for influx of good and services, Osakwe said.

“This is the right thing to do. Other economies do it and we will do it.”

Corroborating the position of Osakwe, the Director General of the Nigeria Economic Summit Group, . Mr Laoye Jaiyeola who spoke exclusively to Daily Trust said: “If we claim to be the giant of Africa but we cannot compete in Africa then there is a problem. Many Nigeria are out there in other African countries facing very tough conditions to establish their businesses. all ACFTA would have done was to make everything uniform and level.

Jaiyeola argued that what has been negotiated under the ACFTA is that 10 per cent is covered, “so we have about 850 lines of trade that we can protect. Currently are protecting just 160, so it gives more room to protect.”