Nigeria edges closer to AfCFTA ratification

Nigeria is at the tail end of negotiations on the rules of origin, a move that brings the nation closer to the ratification of the African Continental Free Trade Agreement (AfCFTA). The Acting Director General of the Nigerian Office of Trade Negotiations, Liman Victor Liman, has highlighted the progress being made in finalizing the rules of origin. This development signifies a significant step forward for Nigeria's readiness for the AfCFTA. To delve deeper into Nigeria's preparedness, Obiora Madu, CEO of Multimix Group, shared insights in a recent interview on CNBC Africa. Madu expressed optimism about the nearing conclusion of negotiations on the rules of origin, emphasizing their vital role in ensuring the success of free trade agreements. He noted that without clear rules of origin, there is a risk of mislabeling goods and undermining the principles of free trade. Madu commended the progress made so far and underscored the importance of reaching a consensus on this critical aspect of the AfCFTA. Moreover, Madu discussed the proposed value-add percentage of 30 to 45 percent within the rules of origin. Drawing from past experiences with trade agreements, he advocated for a gradual increase in value add requirements to prevent loopholes that could be exploited by trade partners. Addressing the challenge of monitoring compliance among African countries, Madu highlighted the complexities involved in ensuring adherence to the AfCFTA agreement. He acknowledged the arduous task of holding nations accountable for their commitments and emphasized the need for robust monitoring mechanisms. Madu stressed the significance of effective implementation and enforcement to safeguard the integrity of the AfCFTA. Despite the hurdles ahead, Madu emphasized the importance of initiating the agreement as a stepping stone towards continental development. In discussing Nigeria's competitiveness within the region, Madu acknowledged the existing challenges, such as power generation and logistics infrastructure. He urged Nigerian authorities to prioritize enhancing the country's competitiveness to leverage the opportunities presented by the AfCFTA. Highlighting the urgency of improving competitiveness, Madu underscored that Nigeria must address internal obstacles to maximize the benefits of regional trade agreements. Reflecting on Nigeria's delayed signing of the AfCFTA agreement, Madu downplayed the impact on the country's influence within the African region. He asserted that while Nigeria's participation is valued, other countries would proceed with or without Nigeria's involvement. Madu emphasized the need for Nigeria to focus on strengthening its competitive edge to position itself favorably in the evolving trade landscape. Ultimately, Madu called for proactive measures to enhance Nigeria's competitiveness and ensure its relevance in the context of regional trade dynamics. As Nigeria edges closer to AfCFTA ratification, the nation faces pivotal decisions that will shape its economic trajectory within the continent.