Nigeria is poised to commence formal exportation of locally produced commodities to South Africa, Rwanda, Cameroon, and Kenya next month, marking a significant milestone under the African Continental Free Trade Area (AfCFTA) Guided Trade Initiative.
The announcement was made by the Executive Secretary of the National Action Committee on AfCFTA, Olusegun Awolowo, during the Abuja Stakeholders Workshop on the AfCFTA Digital Trade Protocol.
Although trading under the main AfCFTA framework has not yet begun, Nigeria will initiate official and formal exports under the Guided Trade Initiative in April. This move aims to boost economic ties with African nations and harness the benefits of the AfCFTA treaty.
The Guided Trade Initiative, introduced by the AfCFTA secretariat, seeks to facilitate trade among African countries outside their regional blocks. Nigeria has signed onto the initiative, and selected companies will kickstart official exports to the aforementioned countries.
Awolowo highlighted the importance of going through the necessary protocols and agreements before commencing trading under AfCFTA. He emphasized that the Guided Trade Initiative is a crucial step towards realizing the full potential of the AfCFTA agreement.
In addition to Nigeria, other countries participating in the Guided Trade Initiative include South Africa, Kenya, Cameroon, and Rwanda. This initiative aims to expedite trade activities while testing the capacities of ports, shipments, and cargo handling.
Established in 2018 and becoming effective in 2019, AfCFTA aims to boost intra-African trade, foster economic development, and create a more competitive African market. Despite challenges such as trade facilitation measures and infrastructure gaps, experts believe AfCFTA has the potential to transform Africa’s economic landscape.
The adoption of the AfCFTA Digital Trade Protocol at the workshop signifies a significant milestone towards economic integration and digital transformation. Stakeholders, including Nigerian youth, are encouraged to embrace digital trade as a catalyst for job creation, wealth generation, and socio-economic empowerment.
Bashir Maidugu, Senior Special Assistant to the President on Legal, Research, and Compliance Matters, emphasized the need for government support to empower Nigerian youth in digital trade. Maidugu suggested funding for universities, research institutes, and e-learning centers to enhance digital skills and maintain Nigeria’s dominance in the digital space.