Reps speak on AfCFTA effects on businesses

The House of Representatives has observed that, Nigerian economy and businesses are not well-positioned for the socio-economic impacts of the African Continental Free Trade Area (AfCFTA).

This was contained in a motion moved by Rep. Ben Rollands Igbakpa adopted during plenary on Thursday.

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Presenting the motion, Igbakpa said Nigeria’s businesses are not well-positioned to take full advantage of the agreement as there are no infrastructures that will promote the products that we seek to export.

“As Africa’s largest economy and most populous country (with a GDP of $405 billion and with a population of about 180 million), Nigeria, which is also Africa’s largest market, it cannot afford to execute such agreements without full and proper consultation with all stakeholders, particularly the National Assembly.

“The agreement would impact on government revenue and social welfare as it tends to eliminate all tariffs among African countries, this would erode the trading states’ treasury by up to $4.1bn annually and deepen poverty.”

He recalled that President Muhammadu Buhari signed the agreement establishing the African Continental Free Trade Area (AfCFTA) on behalf of the Federal Republic of Nigeria at the African Union summit in Niger July 7, 2019.

“With a porous border system and a mono-economy without substantial production, for instance, there are fears that the agreement as presented and conceptualised would open the country’s seaports, airports and other businesses to unbridled foreign interference and domination,” he noted.

The Ad-hoc committee is to interface with the Comptroller General of Customs, Immigration and other relevant security agencies to determine Nigerian security preparedness for the AFCFTA regime.