Nigeria Customs and Driving the AfCFTA Implementation By Abdulsalam Mahmud

Nigeria Customs and Driving the AfCFTA Implementation By Abdulsalam Mahmud,

One laudable initiative aimed at boosting the growth of Africa’s economy is the African Continental Free Trade Area Agreement, AfCFTA. Signed by 54 African Union member states in 2018, AfCFTA seeks to create the largest free trade area in the world by connecting over 1.3 billion people across Africa.

Wamkele Mene, the Secretary-General of AfCFTA, described the agreement as a “game changer” for the continent, emphasizing its potential to boost intra-African trade by over 50 percent by 2030. By eliminating tariffs on 90 percent of goods, AfCFTA aspires to foster economic integration and strengthen Africa’s position in global trade.

AfCFTA is projected to generate a cumulative income gain of $450 billion across Africa by 2035, according to the World Bank. Advocates believe the agreement will create an integrated market that enables African businesses to grow and compete on a global scale.

“We have an unprecedented opportunity to industrialize Africa and unlock new value chains,” Mene stated at the 2023 AfCFTA Business Forum. This vision extends across diverse sectors—from manufacturing and agriculture to digital technology—empowering economies throughout the continent.

AfCFTA also aims to support small and medium-sized enterprises (SMEs), which constitute about 80 percent of businesses in Africa. By opening access to a larger, integrated market, SMEs have the potential to scale up and reach more customers continent-wide.

Experts suggest that AfCFTA can empower these enterprises, especially in landlocked countries, to enter new markets and increase productivity. Many project this shift could create millions of jobs and spur innovation across multiple industries.

Additionally, AfCFTA’s focus on harmonized trade policies could foster stronger economic cooperation among African nations. This agreement is not only about trade but also about transforming how African countries collaborate and support each other’s development goals.

As African nations start to see the practical impacts of AfCFTA, Nigeria has taken a bold step forward in realizing this vision through its first shipment to Kenya under the agreement. The Nigeria Customs Service (NCS), playing a pivotal role as the Designated Competent Authority (DCA), recently facilitated the export of goods by Lucky Fibres, a subsidiary of the Tolaram Group, to the port of Mombasa.

This historic milestone highlights Nigeria’s commitment to AfCFTA’s goals of boosting intra-African trade and enhancing cross-border collaboration. During a visit to the Apapa Area Command last Wednesday, Mr. Olusegun Olutayo, Senior Trade Expert and Lead of Trade Enablement at the Nigeria AfCFTA Coordination Office, emphasized the collaborative spirit that AfCFTA seeks to promote across the continent.

“It is not that we are doing it alone; I have already sent a message to the Secretariat in Ghana that there will be a shipment under AfCFTA to Kenya,” Olutayo noted, underscoring the coordination between member states and the AfCFTA Secretariat to facilitate seamless trade.

He commended the Nigeria Customs’ role in this success, praising their dedication to facilitating trade. “The Nigeria Customs Service has been fantastic; they are ready to facilitate trade. Once they hear that there is an issue, particularly around AfCFTA, you will see everybody ready to support and facilitate it, which is the essence of true trade facilitation,” Olutayo said.

Assistant Comptroller Olusola Salako, the releasing officer for the Lilypond Export Command at Apapa, highlighted the NCS’s focus on leveraging technology to advance AfCFTA’s mission. “Gone are the days when we experienced issues. Today, we have a Unified Customs Management System (UCMS),” he explained, noting how updated technology and trained officers ensure that Nigeria is well-positioned to benefit from the AfCFTA framework and expand its reach within African markets.

Without a doubt, the first shipment from Nigeria to Kenya under AfCFTA showcases Africa’s progress toward economic integration. It reflects the practical benefits of the agreement, demonstrating that seamless trade across African borders is becoming a reality rather than just an aspiration.

With this step, the NCS has underscored its commitment to making AfCFTA’s vision a lasting success, paving the way for further trade and collaboration. This milestone marks only the beginning of Africa’s journey toward shared economic growth.

In this context, Nigeria Customs firmly stands at the forefront of AfCFTA’s implementation. As businesses and customs authorities across Africa deepen their commitment to the AfCFTA framework, the continent is poised to move closer to a new era of economic unity. And with Nigeria’s proactive involvement, the agreement promises to unlock Africa’s vast potential.

Mahmud, Deputy Editor of PRNigeria, wrote in via: [email protected].