For failing to position strategically for the over $400 billion African continental trade regime, Nigeria may only become a dumping ground for products from other African countries.
The Vice President, Air and Logistics of the National Association of Government Approved Freight Forwarders (NAGAFF), Segun Musa, has raised concerns about Nigeria’s inadequate preparedness for effective participation in the African Continental Free Trade Area (AfCFTA).
In a recent interview, Musa highlighted the country’s infrastructural deficiencies and lack of production capacity, warning that Nigeria risks becoming a dumping ground for goods from other African nations.
According to Musa, AfCFTA presents a significant opportunity to boost Nigeria’s economy, but the nation currently has little to offer in terms of trade. “We have opened AfCFTA for trade liberalization, but unfortunately, Nigeria has nothing to showcase. We are likely to be a dumping country because we have nothing to exchange,” he said.
Musa emphasized that sustainable production is critical for any country to benefit from AfCFTA. However, he noted that Nigeria lacks key enablers such as stable energy supply, advanced technology, reliable infrastructure, and adequate security. “Without these, our participation will be limited to the importation of goods from other African nations, as we have no competitive advantage to leverage in the continental market,” he lamented.
The NAGAFF Vice President called for urgent government intervention to boost local production and enhance Nigeria’s trade readiness. “We need to begin to identify and support entrepreneurs in production, provide them with liquidity, and ensure their products meet certification standards for both local and export consumption,” Musa advised. He added that regulatory bodies like the Standards Organisation of Nigeria (SON) must play a more active role in promoting standardization and improving local manufacturing capacity.
Musa also criticized the implementation of AfCFTA in Nigeria, describing it as overly theoretical. He expressed frustration with the lack of practical engagement by the government and stakeholders tasked with facilitating the agreement. “Most of their activities are just talk shows and paper presentations. If the government is serious, they should focus on practical dialogue and strategies to achieve results,” he stated.
He further highlighted missed opportunities by committees overseeing AfCFTA implementation, accusing them of failing to engage relevant stakeholders effectively. “To date, there is no seriousness in their approach. We need to move beyond theories to actionable plans that involve all stakeholders,” Musa asserted.
While expressing hope that Nigeria could still benefit from the AfCFTA, Musa urged the government to prioritize local content development, capacity building, and export-readiness initiatives. “AfCFTA is a continuous market, and it is not too late for us to harness its benefits. However, this depends on the government’s interest in ensuring we have something tangible to offer,” he concluded.
The AfCFTA agreement, which came into effect in 2021, aims to create a single market for goods and services across Africa, fostering intra-continental trade and economic integration. However, Nigeria’s ability to maximize the benefits of this ambitious project remains uncertain without significant structural reforms and a clear trade strategy.
