The African Continental Free Trade Area (AfCFTA) agreement is expected to substantially increase trade within the region by lowering or eliminating cross-border tariffs on 90% of goods, thereby facilitating the movement of capital and people, promoting investment and paving the way for a continent-wide customs union. This free trade deal will also create a free market for 1.2 billion people in Africa with a Gross Domestic Product of $2.2 trillion and a single currency for trade transaction amongst African Union members.
For every agreement, there’s always a contagion or a convergence.
How is this agreement beneficial to the Nigerian economy and society.
Analysing this agreement based on our current developmental status, it will be largely agreed that we are not ready for an agreement as this compared to other countries like South Africa, Rwanda etc who technologically and industrially are way ahead of us even though our economy seems to be one of the biggest in Africa. Our manufacturing sector is still trying to find it’s feet in Africa due to power problems.
I guess the President and his advisers would have thought greatly about the pro’s and con’s of this deal to the Nigerian economy before finally deciding to sign the agreement.
By signing this agreement, Nigeria joins the 44 member countries of the African Union, having signed the agreement. Our focus having signed this agreement should be on Product development because Nigeria already has a huge market which will attract investors globally.
The government should work towards policies which will motivate the springing up of manufacturing industries such as Tax Incentives for Companies, Constant Power Supply etcetera.
The government currently is encouraging Agripreneurship, however, more focus should be on the Processing of these Agricultural products which will be exported to other nations and this will definitely male Nigeria, one of the largest Agricultural Market in Africa.
There should also be specialization and standardization of goods and services in relation to our exports and imports based on this Agreement for as one of Africa’s largest economy, we should lead the pace in excellence.
In the long-run, this trade agreement will not only give us leverage in the global trade but also create job opportunities for Nigerian Youths, revamp our manufacturing sector, bring about industrialisation and boost our economy status in Africa and the global market.