President Muhammadu Buhari in Niamey, Niger Republic, signed the
African Continental Free Trade Area (AfCFTA) agreement, making Nigeria the 53rd state on the continent to append her signature to the document.
Reports reaching the News Agency of Nigeria (NAN) in Abuja, indicated that the president signed the agreement at exactly 10.47 am local time.
NAN observed that the signing of the agreement was the first event at the opening of the 12th Extra Ordinary Summit of the African Union on launch of the Operational Phase of the AfCFTA.
Buhari had delayed in signing the agreement, which entered into force May 30, 2019.
The delay was to give room for extensive consultations with stakeholders, culminating in the submission of the report by the Presidential Committee to Assess Impact and Readiness of Nigeria to join the free trade area.
The committee had recommended that Nigeria should sign the agreement which aims to boost intra-African trade.
In accepting the report as submitted, the President made it clear that Nigerian government would be seeking to include terms that engender the development of policies that promote African production, among other benefits.
President Buhari said: “Africa, therefore, needs not only a trade policy but also a continental manufacturing agenda.
“Our vision for intra-African trade is for the free movement of `made in Africa goods’. That is, goods and services made locally with dominant African content in terms of raw materials and value addition.
“If we allow unbridled imports to continue, it will dominate our trade. The implication of this is that coastal importing nations will prosper while landlocked nations will continue to suffer and depend on aid.’’
NAN reports that the AfCFTA is expected to be the world’s largest free trade area since the formation of the World Trade Organization, with a potential market of 1.2 billion people.
In his remarks shortly after signing the agreement, the Buhari declared that Nigeria’s commitment to trade and African integration had never been in doubt nor was it ever under threat.
He told the Summit that Nigeria would build on the event by proceeding expeditiously with the ratification of the AfCFTA.
The Nigerian leader said: ‘‘Nigeria wishes to emphasize that free trade must also be fair trade.
‘‘As African leaders, our attention should now focus on implementing the AfCFTA in a way that develops our economies and creates jobs for our young, dynamic and hardworking population.
‘‘I wish to assure you, that Nigeria shall sustain its strong leadership role in Africa, in the implementation of the AfCFTA.
”We shall also continue to engage, constructively with all African countries to build the Africa that we want.”
President Buhari also congratulated Ghana on being selected to host the Secretariat of the AfCFTA.
‘‘I have just had the honour of signing the agreement establishing the African Continental Free Trade Area (AfCFTA), on behalf of my country, the Federal Republic of Nigeria.
‘‘This is coming over a year since the AfCFTA Agreement was opened for signature in Kigali, Rwanda, at the 10th Extraordinary Summit of the African Union, on 21st March 2018.
‘‘In fact, you will recall that the treaty establishing the African Economic Community was signed in Abuja in 1991.
‘‘We fully understand the potential of the AfCFTA to transform trade in Africa and contribute towards solving some of the continent’s challenges, whether security, economic or corruption.
‘‘But it is also clear to us that for AfCFTA to succeed, we need the full support and buy-in of our private sector and civil society stakeholders and the public in general.
‘‘It is against this background that we embarked on an extensive nationwide consultation and sensitization programme of our domestic stakeholders on the AfCFTA,” he said.
The president maintained that the consultations and assessments reaffirmed that the AfCFTA could be a platform for African manufacturers of goods and providers of service to construct regional value chains for made in Africa goods and services.
He added: ‘‘It was also obvious that we have a lot of work to do to prepare our nation to achieve our vision for intra-African trade which is the free movement of ‘made in Africa goods’ ”.
‘‘Some of the critical challenges that we identified will require our collective action as a Union and we will be presenting them for consideration at the appropriate AfCFTA fora.
‘‘Examples are tackling injurious trade practices by third parties and attracting the investment we need to grow local manufacturing and service capacities.’’
President Buhari noted that Nigeria’s signing of the AfCFTA and its Operational Launch at the 12th Extraordinary Summit was an additional major step forward on the AU’s Agenda 2063.
Meanwhile, with Nigeria and Benin Republic signing the Agreement at the Summit, 54 out of 55 African countries have signed the world’s largest free trade area deal, encompassing 55 countries and 1.2 billion people.
Eritrea is the only African country yet to sign the agreement.
A total of 26 African countries have deposited instruments of ratification, with Gabon being the latest after depositing her instrument of ratification during the Extraordinary Summit.
The AfCFTA Agreement entered into force on May 30, 2019, 30 days after having received the 22nd instrument of ratification on 29 April, 2019 in conformity with legal provision.
In a related development, Prof. Uche Uwaleke, Chairman Chattered Institute of Bankers of Nigeria, Abuja Branch, says Nigeria can leverage on the African Continental Free Trade Area (AfCFTA) agreement to boost production and increase export.
Uwaleke made the call in an interview with News Agency of Nigeria on Sunday in Abuja, ahead of Nigeria’s decision to sign the agreement at the AU summit.
Uwaleke said, “It is a good thing that the president is disposed to signing the AfCFTA agreement.
“This is an agreement that involves African countries and it is an opportunity for us in Nigeria to ramp up production and see what we export to these other countries.
“In matters like this, if the smaller countries are not afraid to sign it, Nigeria being the giant of Africa should be in the front,” he said.
He added that beyond creating opportunities for Nigeria to increase export, AfCFTA would strengthen intra continental trade as well foster good relationship among African countries.
“It will boost the economy of Africa and promote trade in the continent.
“AfCFTA will boost intra continental trade and relations among African countries.
“It will also guarantee free movement of people and goods and foster good relationships among citizens of various countries.
“Trade among African countries is low in volume, so this agreement is apt to boost intra continental trade.
“Nigerians are in all parts of Africa and once it is signed, I am sure a lot of Nigerians will benefit where they are.
“It will also boost diaspora remittances to Nigeria,’’ he said.
Uwaleke expressed joy that the single currency initiative of ECOWAS would also come up for discussions at the AU summit.
According to him, the single currency initiative of ECOWAS member countries is an integral component of AfCFTA, so I am sure that would also come up for discussions.
“ECOWAS is thinking of having a single currency by the year 2020.
“This single currency for West Africa, Eco, will further facilitate trade and promote single market for Africa in 2023 and AfCFTA will encourage this.
“Member countries of ECOWAS will no longer look for dollars to do transactions,’’ he said.
He, however, urged Nigeria and other African countries to put in place effective mechanism to check influx of criminals due to free movement of goods and people.
“When you have free movement of goods and people, you also put in place mechanisms to ensure that only people with genuine business interests and without criminal tendencies are allowed into the country.
“AfCFTA agreement do not stop countries from implementing their immigration laws.
“Only those with genuine business should be allowed into the country,’’ Uwaleke said.
