NOW THAT AfCFTA IS SIGNED
By Trek Africa Newspaper
President Buhari signing the AfCFTA
After much ado, Nigeria became one of the last countries to append her signature on the African Continental Free Trade Area agreement by the 55 member-strong African Union when President Muhammadu Buhari attended the extraordinary summit of the continental body in Niamey, Niger republic in July.At the summit, the AfCFTA agreement comes into operational phase and is the largest in the world in terms of countries participating in it.
While Nigeria is not new to international conventions and treaties, many watchers have argued on the benefits of this new deal to Nigerians. How the trade agreement impacts the economic wellbeing of the Nigerian populace is a question they pose.
It is important to establish that the concept of free trade is a concept that will positively influence economic development in Africa as it removes unnecessary trade barriers and bottlenecks commonly experienced in the continent. This means that goods and services, say from Nigeria will now move freely, say to South Africa withlimited tariffs, quotas and other custom restrictions.This will potentially reduce import challenges, lead to job creation, and boost economic development of member states. However, it can also pose challenges for member states who are ill-prepared.
Though, Nigeria has the largest population in the continent which is supposedly a favourable factor for the country, it can become a negative if not well managed. In the light of recent experience, Nigeria has become a dumping ground of sort because other countries take undue advantage of the huge population in the country.
When industrial activity is low for whatever reason, Nigeria will not maximize the benefit of this new agreement. This implies that building of public infrastructure, implementation of public policies that boost production, and engagement of the immense working population base must, henceforth, take centre stage.
It is hoped that the long stance of Nigeria away from signing the pact has made her take a holistic look into the pact. The country should benefit more from this pact than it is currently enjoying from the ECOWAS Common External Tariff. Nigeria must not play catch up in this game.
