After so much back and forth on the pros and cons of the Africa Continental Free Trade Agreement (AfCFTA), the Nigerian President Muhammadu Buhari has confirmed that he will sign the landmark African free trade agreement during the upcoming African Union meeting in Niger.
“Nigeria will sign the #AfCFTA Agreement at the upcoming Extraordinary Summit of the African Union in Niamey, Niger,” the presidency said in a Tweet late Tuesday.
Nigeria had been a key backer of the plan to progressively reduce trade barriers on the continent since talks on the African Continental Free Trade Area got underway in 2002.
However, it abruptly changed course shortly before the deal was signed last year following pressure from local unions and businesses fearful that they would be uncompetitive if trade barriers are dropped.
“For #AfCFTA to succeed, we must develop policies that promote African production, among other benefits. Africa, therefore, needs not only a trade policy but also a continental manufacturing agenda.” — President @MBuhari, June 27, 2019
— Presidency Nigeria (@NGRPresident) July 2, 2019
“Let me state unequivocally that trade is important for us as a nation and to all nations. Economic progress is what makes the world go around. Our position is very simple, we support free trade as long as it is fair and conducted on an equitable basis.” — President @MBuhari
— Presidency Nigeria (@NGRPresident) July 2, 2019
Nigeria is signing the #AfCFTA Agreement after extensive domestic consultations, and is focused on taking advantage of ongoing negotiations to secure the necessary safeguards against smuggling, dumping and other risks/threats.
— Presidency Nigeria (@NGRPresident) July 2, 2019
Last week, a special government panel formed to study the potential impact of joining AfCFTA, recommended that Buhari sign Nigeria up.
The trade deal “provides immense opportunities for Nigeria’s manufacturing and service companies to expand to Africa,” the panel’s chair, Desmond Guobadia, said in a statement after submitting its report.
AfCFTA formally came into force at the end of May, after the required minimum of 22 countries ratified the ambitious plan to boost intra-African trade, which has long suffered by high tariffs.
It hopes the progressive elimination of tariffs will help boost regional trade by 60 per cent within three years. At present, only 16 per cent of trade by African nations is with continental neighbours.
Nigeria is one of only three of the AU’s 55 member states to not have signed up to AfCFTA, with other African economic heavyweights such as Egypt, Ethiopia, Kenya, and South Africa having ratified the pact.
