Logistics experts have voiced critical concerns regarding Nigeria’s readiness to fully leverage the unprecedented opportunities presented by the $3.4 trillion African Continental Free Trade Agreement (AfCFTA). During the 2024 Maritime Reporters Association of Nigeria Annual Lecture in Lagos, these experts emphasized how the country’s infrastructural shortcomings could impede its economic advancement under the agreement. Mr. Sola Adewunmi, President of the Nigerian Indigenous Shipowners Association, highlighted the lack of essential transportation facilities necessary for promptly moving goods, which raises questions about Nigeria’s preparedness to capitalize on the trade benefits of AfCFTA. He lamented ongoing financial losses faced by investors in Nigeria, attributing these setbacks to ineffective government policies and resource constraints.
Adewunmi urged that shipowners in Nigeria need to be better equipped to compete with global players. He pointed out that Nigerian shipping entities struggle against foreign competitors who have access to favorable financing terms. He stressed the importance of providing indigenous shipowners with incentives that could empower them to operate more competitively in the international market. His statements resonated with many, as he underscored the need for the Nigerian government to take proactive steps in enhancing the shipping sector’s capabilities in order to fully exploit AfCFTA and boost the nation’s economic prospects.
Former Vice President of the Association of Nigerian Licensed Customs Agents, Dr. Kayode Farinto, also stressed the necessity of prioritizing trade facilitation among government agencies to ensure that AfCFTA succeeds. Farinto criticized Nigeria’s over-reliance on road transportation, which he identified as a major hindrance to effective logistics management. He called for an integrated multimodal transport system that would enhance the movement of goods across borders. His input highlighted the urgency of a coordinated approach between the Ministry of Marine and Blue Economy and the Ministry of Trade to develop better transport infrastructures and reduce reliance on road transit.
Mr. Godfrey Bivbere, President of the Maritime Reporters Association of Nigeria (MARAN), echoed the sentiments about the transformative potential of AfCFTA for Africa. He acknowledged that while the agreement presents a significant opportunity for economic growth and cooperation, several barriers, including inadequate infrastructure, regulatory hurdles, and operational inefficiencies, must be overcome to enable the free flow of goods across borders. Bivbere’s remarks underlined the overarching need for regional collaboration to dismantle existing obstacles while creating stronger economic ties between African countries.
During the event, Nigeria’s Minister of Marine and Blue Economy, Adegboyega Oyetola, reaffirmed the government’s commitment to fully harnessing AfCFTA’s potential. Representing Oyetola, Ismail Omidpidan emphasized that the government is actively pursuing initiatives aimed at increasing trade flows within Africa. Notably, Nigeria has made significant strides under the Guided Trade Initiative, which has begun facilitating shipments that pave the way for increased trade cooperation. Oyetola also underscored the vital role of efficient maritime transportation systems in linking global supply chains, which are crucial for the nation’s economic progress and sustainable development.
In conclusion, Nigeria’s recent initiatives towards participation in the AfCFTA, particularly under the Guided Trade Initiative, signal a potential shift in trade practices that may bolster economic growth. However, the consensus among experts indicates that substantial investments in infrastructure, logistics systems, and regulatory frameworks are imperative for the nation to fully realize the benefits of the agreement. Continued focus on modernizing port facilities, improving institutional capacities, and incentivizing local shipowners would be pivotal in ensuring that Nigeria emerges as a competitive player in the burgeoning African market. Ultimately, ensuring these foundational structures are in place will be essential for Nigeria to maximize its engagement with AfCFTA and facilitate a more prosperous economic landscape throughout the continent.
