On Thursday, President Muhammadu Buhari again explained why Nigeria will not be rushed into the AfCFTA agreement.
The African Union Agenda 2063’s AfCFTA treaty is one of the flagship projects directed at establishing a single continental market for products and services with free motion of company people, investment and a single currency across the continent.
The agreement also commits nations to abolish tariffs on 90% of products and liberalize services, while delicate products, which make up the 10% equilibrium, will later be phased out as tariff-free.
At its 10th Extraordinary Summit in Kigali, Rwanda, on March 21, 2018, the African Union Heads of States and Governments adopted and signed the first phase of the agreement.
Although Nigeria was a prominent facilitator of the agreement’s drafting and implementation, the nation was one of the few nations that did not participate in the final document.
Many Nigerians, including former president Olusegun Obasanjo, voiced concern and disappointment about the decision on signing the contract by the federal government.
Mr Obasanjo defined the choice to delay the signing of the contract as criminal and disappointing, taking into account the status of Nigeria and the recognized role of governance in Africa.
But the government said its choice to withhold the signing of the agreement was to allow wider consultation in the midst of an outcry from trade unions that the agreement would not benefit Nigeria much.
With nearly all of the AU’s 54 member countries signing the agreement to indicate the treaty’s willingness to come into effect, the Nigerian government is insisting on finishing consultations with interest groups, weighing the treaty’s impact on the economy of the country.
When the report was presented on Thursday on the effect of the AfCFTA and the preparation of Nigeria for it, President Buhari reaffirmed the determination of his administration not to rush into any contract without complete and adequate consultation with all stakeholders.
“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. The AfCFTA will have both positive and negative effects on us as a nation and on our region.
“As Africa’s largest economy and most populous country, we cannot afford to rush into such agreements without full and proper consultation with all stakeholders,” Mr Buhari said.
According to the president, Nigeria’s consumption consists mostly of products imported from outside Africa, with the commission noting that intra-African trade accounted for only 14 percent of the total quantity of trade on the continent.
In order for AfCFTA to succeed, Nigeria and other African nations, among other advantages, must create policies that encourage African manufacturing.
Therefore, he said Africa requires not only a trade policy, but a continental production agenda as well.
Nigeria’s vision for intra-African trade, he said, is for “made-in-Africa goods” free movement – that is, goods and services made locally with dominant African material in terms of raw materials and added value.
Mr Buhari said that if Nigeria enables unbridled exports to continue, it will dominate trade in the country, with coastal importers having better opportunities for prosperity, while landlocked countries will continue to suffer and rely on assistance.
He reiterated his opinion that many of the safety, economy and bribery problems facing Nigeria today were rooted in the country’s failure over the years to domesticate the manufacture of the most fundamental demands and generate employment for our vibrant, young and dynamic population.
Consequently, he said his administration would henceforth guarantee company opportunities for African producers, service providers and innovators were generated by the negotiated contracts of the country.
On the AfCFTA treaty, he said Nigeria would aspire not only to generate wealth for investors, but also to generate employment and prosperity for the vibrant and hard-working people of the nation, as the advantages of economic growth must be mass prosperity.
He expressed trust that the report of the committee will form part of the government’s account of its decision on the next measures on the AfCFTA and the wider topics of trade integration.
