Nigeria maps out trade policies for AfCFTA

In a bid to fully leverage the benefits of the African Continental Free Trade Area (AfCFTA), Nigeria's National Action Committee has embarked on the development of policies aimed at supporting and enhancing trade within the region. Professor Ken Ife, the Lead Consultant for Industry and Private Sector Development at the ECOWAS Commission, recently shed light on the strategies and policies being formulated to drive trade growth. The core theme of Nigeria's strategic approach involves a multi-faceted strategy that encompasses both the national and regional levels. Professor Ife highlighted the extensive consultations and analysis undertaken to assess the economic framework, institutional dynamics, and risks and mitigation strategies surrounding the AfCFTA. With a focus on prioritizing trade and production opportunities, the committee aims to bridge the gap created by Nigeria's previous delay in ratifying the AfCFTA agreement. One of the critical aspects under review is Nigeria's trade policy, which has not been updated since 2002. The current review seeks to align the country's trade policies with the requirements of the AfCFTA and enhance regional cooperation. The overarching goal is to strengthen trade-related infrastructure, governance mechanisms, and negotiation processes while enhancing the investment climate and trade capacity of the country. Key Points: 1. **Trade-Related Infrastructure Development**: Nigeria is focusing on enhancing quality infrastructure, particularly in agriculture, to meet international standards and certifications. Infrastructure investments in transit corridors, power connectivity, and single windows are prioritized to facilitate seamless trade operations. 2. **Private Sector Consultation**: Extensive consultations with the private sector, including SMEs and companies, are integral to ensuring the ownership and success of the trade strategies. The National Action Committee is actively engaging with private sector stakeholders to gather insights and perspectives. 3. **Timeline and Progress**: While the AfCFTA is already operational, Nigeria's efforts to align its policies and infrastructure are ongoing. Progress is being made in trade governance, facilitation, and negotiations, with a keen focus on regional integration and harmonization of trade rules. In discussing trade-related infrastructure, Professor Ife emphasized the significance of quality infrastructure in agriculture and the need for investments in regional connectivity to boost trade volumes. He highlighted the potential economic impact of fulfilling missing links in infrastructure, citing a World Bank report that projected a significant increase in trade with infrastructure investments. Despite the challenges of evolving trade dynamics and the regional complexities, Nigeria remains committed to harnessing the opportunities presented by the AfCFTA. With ongoing negotiations on services and rules of origin, the country is striving to harmonize trade frameworks across the region. In conclusion, Nigeria's proactive approach to developing robust trade policies and infrastructure aligns with its vision of fostering sustainable trade and enhancing competitiveness within the AfCFTA framework. The coordinated efforts of the National Action Committee, in collaboration with private sector stakeholders and regional partners, signify a positive step towards realizing the full potential of intra-African trade.