AfCFTA: What's holding Nigeria back?

Nigeria, a prominent leader not just in Africa but also globally, is on the cusp of making a significant decision regarding the Africa Continental Free Trade Agreement (AfCFTA). Ambassador Chiedu Osakwe, the Director General of the Nigerian Office for Trade Negotiations, expressed his confidence that Nigeria will take the necessary steps to move forward with the agreement. However, the ultimate decision lies in the hands of President Muhammadu Buhari. During an interview with CNBC Africa's Godfrey Mutizwa at the Intra-Africa Trade Fair in Egypt, Ambassador Osakwe shed light on the processes and preparations involved in bringing this crucial decision before the President. He emphasized the thoroughness and diligence with which they have approached this decision and outlined the steps taken by Nigeria in ensuring readiness and competitiveness in the global trade landscape. One key theme that emerged from the interview was Nigeria's dedication to ensuring that all necessary groundwork is covered before committing to the AfCFTA. Ambassador Osakwe reiterated that Nigeria's decision regarding the agreement will be based on solid evidence, thorough consultations, and the completion of due diligence domestically. The President's approval will be sought once all these aspects are in place. Key Points: 1. Nationwide Consultations: Nigeria embarked on a comprehensive nationwide consultation process to engage with key stakeholders from various sectors. With a focus on sensitization and soliciting constructive feedback, the country conducted sessions in all six geopolitical zones, spending significant time and effort in explaining the potential implications of the AfCFTA. The consultations involved in-depth discussions, responses to queries, and the development of trade safeguard mechanisms to protect the Nigerian economy. 2. Establishing a Dedicated Trade Office: In response to the President's directive, Nigeria has set up a specialized office for trade negotiations. This marks a significant shift towards a more organized and efficient approach to trade discussions. The presence of specialists in the field will enhance Nigeria's capacity to engage in trade negotiations effectively and represent its interests on the global stage. 3. Focus on Competitiveness and Policy Development: Nigeria has prioritized competitiveness and policy development as key pillars in its journey towards joining the AfCFTA. Initiatives such as the Industrial Policy and Competitiveness Advisory Council and the Enabling Business Environment Council highlight the country's commitment to enhancing its business environment and domestic supply chains. By finalizing the elements of a modern trade policy, Nigeria aims to position itself as a strong player in the evolving global trade landscape. In light of these developments, Nigeria stands poised to make a well-informed decision regarding the AfCFTA. The meticulous approach taken by the government, under the guidance of President Buhari, reflects a commitment to ensuring that Nigeria's interests are protected and its participation in the agreement is beneficial for the country's growth and development. Quote: "We have now developed a rules-based trade remedy safeguards that would safeguard the Nigerian economy against injurious trade practices. An shipment, dumping, and injurious practices of the sort." - Ambassador Chiedu Osakwe