Nigeria set to Participate under the AfCFTA Guided Trade Initiative

On July 16, 2024, Nigeria will mark a significant milestone in its journey towards creating a unified African market. The Nigeria AfCFTA Coordination Office (NCO) is set to inaugurate a shipment under the AfCFTA Guided Trade Initiative to 5 countries namely, Kenya, Uganda, Zambia, Cameroon, and Egypt. This event, taking place in Lagos, will be graced by His Excellency, President Tinubu, and His Excellency, Wamkele Mene, the Secretary-General of the African Continental Free Trade Area (AfCFTA) Secretariat .

This momentous occasion is a testament to Nigeria’s commitment to the African Continental Free Trade Area (AfCFTA) and its vision of fostering economic integration across the continent. Since adopting the AfCFTA Agreement in 2018 and signing it in July 2019, Nigeria has made remarkable strides in aligning its national policies with the AfCFTA’s objectives. The establishment of the National Action Committee (NAC) on the AfCFTA in December 2019 has been pivotal in coordinating these efforts.

The Role and Functions of the Nigeria AfCFTA Coordination Office (NCO)

The NCO plays a crucial role in ensuring Nigeria’s readiness and active participation in the AfCFTA. Here are some of its key functions and how they assist Nigerians:

1. Coordination of Multiple Agencies: The NCO serves as a central hub, coordinating the activities of various government ministries, departments, and the private sector. This unified approach ensures that all stakeholders work together seamlessly to implement the AfCFTA provisions, making it easier for Nigerian businesses to navigate the trade landscape.
2. Enhancing Export Capacity: One of the NCO’s primary goals is to grow Nigeria’s ‘production for export’ capacity to $50 billion per year. By selecting key products and areas for development, the NCO helps Nigerian businesses identify and capitalize on export opportunities, boosting their competitiveness in the African market.
3. Trade Facilitation: The NCO focuses on reducing the time and cost of trade by simplifying, modernizing, and harmonizing import and export processes. This includes automating administrative and regulatory compliance processes, which streamlines trade activities and reduces barriers for Nigerian traders.
4. Domesticating the AfCFTA Agreement: The NCO works on updating trade and complementary policy regulations and laws to align with the AfCFTA Agreement. This ensures that Nigeria’s national industrial policy is in sync with trade and investment policies, providing a conducive environment for Nigerian businesses to thrive under the AfCFTA.
5. Improving Trade Infrastructure: Recognizing the large deficit in infrastructure, the NCO is dedicated to enhancing energy, digital, water, and logistics infrastructure to support intra-Africa trade. By addressing these infrastructure gaps, the NCO helps Nigerian businesses access new markets and improve their supply chain efficiency.
6. Strengthening Trade Finance: The NCO is involved in configuring and strengthening financial service institutions and businesses for continental trade. This includes financing export trade and providing essential banking, insurance, and related services, making it easier for Nigerian businesses to secure the financial support they need to expand their operations.
7. Bridging Trade Information Gaps: Providing product and market information to the trading community is vital. The NCO supports initiatives like the African Trade Observatory project to ensure traders have access to necessary information. This empowers Nigerian businesses with the knowledge they need to make informed decisions and seize market opportunities.
8. Facilitating Labour Mobility: The NCO also focuses on facilitating the mobility of Nigerian labor across Africa, ensuring that Nigerian professionals can take advantage of opportunities across the continent. This not only enhances employment prospects but also fosters skills transfer and capacity building.

The inauguration of the shipment under the Guided Trade Initiative/AfCFTA Framework is a significant step towards realizing the vision of a single African market. It symbolizes Nigeria’s proactive approach and dedication to the AfCFTA’s goals. As the NCO continues to drive these initiatives, Nigerians are well-positioned to harness the immense opportunities presented by the AfCFTA, fostering economic growth and integration across Africa.

This historic event not only celebrates Nigeria’s achievements but also sets the stage for a future where African nations work together towards shared prosperity.