Jumoke Oduwole, the newly appointed Minister of Industry, Trade, and Investment in Nigeria, has expressed a commitment to optimizing the African Continental Free Trade Agreement (AfCFTA) for the benefit of the country. Oduwole made these remarks during her first address after taking the oath of office at the Presidential Villa, emphasizing the urgency of revitalizing Nigeria’s trade policies to foster job creation for its youth. Observations from the recent Lagos International Trade Fair 2024 underscored the challenges Nigeria faces in fully realizing the potential of the AfCFTA, particularly highlighted by comments from international exhibitors who pointed out inefficiencies at the borders which continue to obstruct cross-border commerce.
In her address, Oduwole highlighted the need for measurable goals and systematic appraisals to ensure that the Ministry’s expectations of change are met. She stressed her role as a collaborator in implementing policies conducive to the nation’s trade environment. The AfCFTA is noted as a significant trade agreement, being the largest free-trade area by membership at 43 parties and 11 signatories, positioning itself as a vital platform for enhancing Africa’s economic landscape. However, concerns around Nigeria’s ability to navigate this agreement effectively suggest that immediate reforms may be required to harness its full benefits.
Exhibitors at the Lagos International Trade Fair raised issues about the operational challenges that Nigeria experiences in actualizing the AfCFTA, particularly related to customs delays and currency devaluation. Asantewa Dotcher, CEO of Charis Excel Ventures, recounted the persistent challenges her business faced with customs procedures while importing goods from Ghana, expressing frustration over the lack of visible impacts from the AfCFTA on the ground. Although there was some improvement with the timely clearance of her products this year, inconsistency in customs operations underscores a broader theme of ineffective implementation of trade policies.
The sentiments shared by Dotcher were echoed by other exhibitors, highlighting the financial strain imposed by higher product prices due to customs challenges. An anonymous exhibitor lamented that the increased costs deterred potential customers, revealing the complexities many businesses face when trying to compete within the framework established by the AfCFTA. This situation raises questions about the effectiveness of Nigeria’s customs and border management practices and their alignment with continental trade policies.
In response to these barriers, Minister Oduwole has emphasized the government’s dedication to improving trade conditions through various reforms aimed at reducing trade barriers and encouraging foreign investment. Initiatives such as the Export Development Fund and the Trade Facilitation Programme were highlighted as steps towards creating a more conducive environment for business operations in Nigeria. By urging exhibitors at the fair to leverage opportunities for networking and expansion, Oduwole expressed optimism about the future of trade in Nigeria, contingent upon addressing existing inefficiencies.
The ongoing dialogue surrounding the AfCFTA and its implementation in Nigeria reflects a critical juncture for the country’s economic policy direction. With a focus on capability building, reforming trade practices, and creating job opportunities, the new minister’s approach signals an intent to foster a more competitive Nigerian economy. However, for such goals to materialize, substantial efforts are needed to resolve the persistent barriers that hinder cross-border trade, ensuring that the AfCFTA translates into tangible benefits for businesses and the broader economy.
