Why Nigeria Won’t Sign African Continental Free Trade Agreement (AfCFTA) Soon, Nigeria Chief Trade Negotiator

Amb. Chiedu Osakwe

By CLEMENT NWOJI, Abuja

The Federal Government on Monday withheld appending its signature to the African Continental Free Trade Agreement (AfCFTA), saying that stakeholders in the six geopolitical zones of the country were apprehensive of its possible negative consequences to the nation’s socioeconomic development.

About 49 African countries have endorsed their signatures to the implementation of the AfCFTA, which entail opening their boarders, removing all trade barriers for free and unhindered movement of goods and services among member nations.

But a member out of three-member panel of discussants on “AfCFTA in an era of rising protectionism” from Nigeria, differed from the rest of African countries which had gone ahead to endorse the AfCFTA and defended President Muhammadu Buhari’s reluctance in signing the agreement.

The discussion on “AfCFTA in an era of rising protectionism” was part of sub-themes of activities on Wednesday marking the on going 25 anniversary celebration of Africa Export Import Bank (Afreximbank) and its Annual General Meeting taking place in Abuja between 11-14 July, 2018.

Responding to question posed to Ambassador Chiedu Osakwe, Chief Trade Negotiator for Nigeria and Director General, Nigerian office for trade negotiations, represented by his Assistant Chief Trade Negotiator, pointed out that feelers from Stakeholders contacted at the six geopolitical zones of the country, indicated that there were fears about Nigeria being trans-shipment and dumping ground of various goods and services.

She said Stakeholders further cited the dearth of infrastructure and power in Nigeria which the government are currently battling to fix up to enable local manufacturers and industries to be competitive.

She however said: “It is not an ideological thing that Nigeria is against any trade free trade agreement​ kind of thing, it has never been.”

Further, she pointed out that the African Growth and Opportunity Act (AGOA) had been there which the beneficiaries had not been able to fully take advantage of.

The Assistant Chief Trade Negotiator particularly pointed out that other major concern include what is it that the beneficiaries of AfCFTA going to give in return.

“So for the AfCFTA, the Government asked before the signing of the agreement in Kigali, that consultations should be deferred. That is the precise word, that different types discussions and consultations with the Stakeholders, businesses who will take advantage of this opportunity.

“And we have consulted, and one or two things we discovered in the process of that consultations include that in all the consultations, we didn’t hear anyone ideologically saying to be part of the AfCFTA is not good for Nigeria.

“What we did hear however was this, yes the AfCFTA is good, but you it has always been around liberalisation, productivity, competitiveness, pressure for cultural reform to be able to modernize and create jobs.

She maintained that even though Nigeria is not ideologically against the agreement but there are issues that need to be fixed such as the competitiveness issue, adding that Nigeria also has energy challenges.

She said these issues need to be fixed so that Nigeria can take advantage of the agreement.