The Nigerian economy can benefit up to $65bn in revenue from the optimization of the Africa Continental Free Trade Area Agreement (AfCFTA) in the next 10 years.
Mr Francis Anatogu, the Executive Secretary, the National Action Committee on Africa Continental Free Trade Area Agreement (AfCFTA) stated this Monday during a virtual press briefing on the activities of the Committee.
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He said whilst the exact projections for what Nigeria might benefit from the deal is still being worked out, Nigeria could earn up to 10 per cent of the African export market share.
“What I can tell you is that Africa on an annual basis imports goods from the rest of the world worth about $540bn per annum. They also import services worth about $140bn or $150bn per annum. So that is the size of the market we are targeting. Obviously Nigeria will take a significant percentage of that market. Our estimation is that Nigeria will take a tangible percentage of that market,” he said.
He explained that “if altogether Nigeria gets 10 per cent of Africa’s market worth $650bn of the market share per annum, then we are targeting $65bn in trade for Nigeria per annum” he said.
“Can that be achieved over 5 years period? Most likely not but it is something we can aim to achieve by 2030 when we achieve full liberalization. But like I said this is work in progress, the projections will become apparent in about a month or two”
He explained further that the Committee is kick-starting a strategy workshop series to put together what they found out in terms of implementation requirements and develop strategies to get into Africa and make a success of AfCF.
“Out of these strategy series will come the specific projections on what benefits Nigerian can get from the deal.” he stated.
“The core rust of the National Action Committee is mobilizing people in the public and private sector, mobilising resources and communicating how we can take advantage of the AfCFTA. It is potentially a game-changer for us in Nigeria.
The Africa Continental Free Trade Area Agreement (AfCFTA) which will come into effect January 2021 seeks to liberalize and facilitate the free movement of persons, capital, goods, and services crucial for deepening economic integration, and promoting agricultural development, food security, industrialization, and structural economic transformation. It also seeks to create an expanded and secure market for state parties’ goods and services, among other trade and commerce benefits.