African Continental Free Trade Area Agreement Nigeria
The African Continental Free Trade Area (AfCFTA) Agreement is a landmark trade agreement signed by African countries in 2018, aimed at boosting intra-African trade and economic growth. The agreement is expected to create the world`s largest single market for goods and services, with a population of over 1.3 billion and a combined GDP of over $3.4 trillion.
Nigeria, the most populous country in Africa and one of the largest economies on the continent, signed the AfCFTA Agreement in July 2019. The country`s participation in the trade agreement is expected to have a significant impact on its economy and trade relations with other African countries.
The AfCFTA Agreement requires member countries to eliminate tariffs on 90% of goods traded across the continent, and to progressively reduce and eliminate tariffs on the remaining 10%. This will facilitate the free movement of goods and services across borders, which is expected to benefit Nigerian businesses and consumers, as well as boost economic growth.
Nigeria is expected to benefit greatly from the AfCFTA Agreement, as the country is a major exporter of oil and a growing producer of agricultural products. The agreement is expected to create new markets for Nigerian goods and services, and provide opportunities for Nigerian businesses to expand their operations across the continent.
However, there are also concerns about the potential challenges that Nigeria may face in implementing the AfCFTA Agreement. For example, the country`s infrastructure and logistics capabilities may not be sufficient to support increased cross-border trade, and there may be conflicts with existing trade agreements that Nigeria has with other countries.
In addition, the AfCFTA Agreement also presents opportunities for Nigeria to address some of its economic challenges. For example, the agreement could help to diversify the country`s economy away from reliance on oil exports, and provide opportunities for small and medium-sized enterprises (SMEs) to participate in regional and global value chains.
As Nigeria continues to implement the AfCFTA Agreement, it will be important for the country to address these challenges and take advantage of the opportunities presented by the agreement. Through effective implementation, Nigeria can position itself as a key player in the growing African market and benefit from increased economic growth and development.