How Nigeria can reap benefits of the AfCFTA

Nigeria is poised to reap the benefits of the African Continental Free Trade Agreement (AfCFTA) that came into effect on the first of January this year. The agreement holds promise for the country, presenting a potential avenue for economic growth, job creation, and innovation. In a recent interview on CNBC Africa, Segun Ajayi-Kadir, Director General of the Manufacturers Association of Nigeria, shed light on the steps Nigeria has taken so far and the challenges that lie ahead. He emphasized the importance of addressing infrastructural deficiencies, lack of policy coordination, and the need for competitiveness in the trade landscape. Additionally, Sam Chidoka, Managing Director and CEO of Kairos Capital, highlighted concerns about Nigeria becoming a dumping ground for more productive African nations and the urgency to position the country for successful exports. Despite the hurdles, both experts expressed hope that with concerted efforts and efficient coordination between stakeholders, Nigeria can maximize the potentials of the AfCFTA. Addressing non-tariff barriers and streamlining border processes were identified as crucial steps to facilitate smooth trade flow. The interview underscored the significance of collaboration between the government and the private sector to navigate the challenges and leverage the opportunities presented by the AfCFTA. Moving forward, Nigeria must focus on enhancing its competitiveness, improving infrastructure, and resolving policy inconsistencies to thrive in the new trade environment. The nation's ability to overcome these obstacles will determine its success in harnessing the benefits of the AfCFTA and contributing to the economic transformation of the continent.