Published On: Thu, Mar 15th, 2018

African Free Trade: FEC approves agreement

Nigeria is set to sign the framework agreement for the establishment of African Continental Free Trade Area (AfCFTA).

Vice President Yemi Osinbajo (R) presides over FEC meeting on March 14, 2018, in Abuja.

The Federal Executive Council (FEC) gave the approval on Wednesday during the weekly meeting chaired by the Vice President, Professor Yemi Osinbajo, at the State House in Abuja.

Consequently, Nigeria is expected to seal the agreement during the Extraordinary Meeting of African Union Heads of State and Government to be held on March 21, 2018, in Kigali, Rwanda.

The Presidency revealed the new development in a statement from the Office of the Special Adviser to the President on Media and Publicity.

Read the background and what the country stands to gain below:

Fact Sheet On The African Continental Free Trade Area (AfCFTA) And Benefits For Nigeria

BACKGROUND

The decision to establish the African Continental Free Trade Area (AfCFTA) was taken in 2012 by all Heads of State and Government of the African Union (AU) at their 18th Ordinary Session.

AfCFTA is the first step in the implementation of AU Agenda 2063: the “Vision” for an integrated, prosperous and peaceful Africa.

Actual Negotiations for the AfCFTA were launched at the AU Johannesburg Summit in 2015.

The Negotiations are in two Stages: Stage 1, covering Trade in Goods and Services; and, Stage 2, covering intellectual property, competition policy and investment.

Stage 1 negotiations have been concluded in March 2018. During the Extraordinary Summit of African Union Heads of State and Government to be held on 21st March 2018 in Kigali, Rwanda, Heads of State and Government shall “adopt, sign and launch the African Continental Free Trade Area”.

The Agreement to establish the AfCFTA will launch the “Single Liberalized Market for Trade in Goods and Services”.

At launch and when in force, the AfCFTA shall be the largest Free Trade Area (FTA) in the global economy, by number.

The AfCFTA is a negotiated rules-based system, to establish the rule of law in trade, deepen, and expand intra-Africa trade from its very low base of 14%.

Benefits For Nigeria: the gains are significant. The AfCFTA would:

Expand market access for Nigeria’s exporters of goods and services, spur growth and boost job creation.

Eliminate barriers against Nigeria’s products and provide a Dispute Settlement Mechanism for stopping the hostile and discriminatory treatment directed against Nigerian natural and corporate business persons in other African countries.

Establish rules-based trade governance in intra-African trade to invoke trade remedies, such as safeguards, anti-dumping, and countervailing duties against unfair trade practices, including dumping, trans-shipment of concealed origin of products.

Support the industrial policy of Nigeria through the negotiated and agreed “Exclusion and Sensitive category lists” to provide space for Nigeria’s infant industries.

Improve competitiveness, the enabling environment for business, consolidate and expand Nigeria’s position as the number 1 economy in Africa.

Stimulate, specifically, an estimated 8.18 percent increase in Nigeria’s total exports, with a small structural shift in Nigeria’s economy towards manufacturing and services. This is expected to lead to a total increase in Nigerian economic welfare by 0.62% – equivalent to around US$2.9 billion in 2018 terms. Changes would result from tariff reduction, ease of doing business and, trade facilitation.

Provide a platform for Small and Medium Enterprises (SMEs) integration into the regional economy and accelerate women’s empowerment.

Provide an expanded platform for Nigerian manufacturers and service providers for connection to regional and continental value chains.

Benefits For Africa, the benefits are considerable. The AfCFTA would:

Cover a market of 1.2 billion Africans with a combined GDP of US$2.5 trillion.

The AfCFTA is expected to increase intra-African trade by up to 52.3%.

Enable all AU countries to share in the welfare gains, which are estimated at around 2.64% of continental GDP – roughly $65 billion in 2018 terms.

Increase real wages for unskilled workers in the agricultural and non-agricultural sectors, as well as for skilled workers, with a small shift in employment expected from agricultural to non-agricultural sectors.

Be accompanied by additional dynamic benefits, notably, export diversification, durable sustained growth, an enlarged regional market that better attracts FDI, with wider economic space for industrialization and catalytic effects for structural transformation.

Expand the size of Africa’s economy to US$29 trillion by 2050, as estimated by the United Nations Economic Commission for Africa.

© 2018, Hallmarknews. All rights reserved. Reference and link to this site is required if you wish to reuse any article.

Reactions from Facebook

comments and opinions

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Most Shared

Recent posts

  • Saraki to Nigerian youths: Turn your cellphones into business tools

    President of the Senate, Dr. Abubakar Bukola Saraki, on Sunday called on the nation’s youths to venture into entrepreneurship through their cell-phones as a way of self-employment and creating job opportunities for others. Saraki gave the charge while delivering the Fourth Convocation Lecture of the Adeleke University, Ede in the State of Osun, on Sunday. […]

  • Gov. commends Abiriba entrepreneurship drive

    From PETER OKORE, Umuahia   Historically, one of the towns that has often been associated with merchandise, entrepreneurship and self-help development efforts in Nigeria is Abiriba; a clan in Ohafia Local Government Area of Abia state. The town, popularly called, “small London” became famous for its age-long endeavours since the era of the British military expedition of Igboland,(1830-1930) in former Eastern Region of […]

  • Population crisis: Nigeria Analysts raise Alarm

    Against increasing concerns about exploding population figures, Nigerian economists, in growing numbers, are raising their voices over an impending tragedy if the current growth rate of 3 per cent per annum is not flipped back. Available data lays bare Nigeria’s romance with disaster. Recent IMF statistics puts Nigeria’s population at a stumping 199.5 million people […]

  • Shareholders bemoan Oando’s deepening crises

    –as court orders top executives to pay N245 billion By OKEY ONYENWEAKU It seems the woes of oil producing and marketing company, Oando Plc, will never end. Just smarting from the problems and controversy that almost brought the firm to its knees over book cooking, another more pernicious headache is breaking out; this time court […]

  • Top banks battle rising NPLs; 2 lose top rating

    By FELIX OLOYEDE In the face of daunting economic challenges commercial lending institutions called Systemically Important Banks or SIBs continue to lead the Nigerian financial services sector despite their struggles with high non-performing loans (NPLs) and shriniking operating margins. The Central Bank of Nigeria (CBN) in September 2014, issued a framework for SIBs, which was […]

  • Qualitative education can curb violence, insecurity, says NDIC boss

    The Managing Director, Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim has advocated quality education as panacea to check the spate of violence and insecurity challenges currently being experienced in the country. The NDIC Boss made the remark in an address he delivered as the Keynote Speaker at the 15th Graduation Ceremony of Zaria Academy, Shika, […]

  • China offshore oil coy to invest $3bn in Nigeria

    The China National Offshore Oil Corporation (CNOOC) is to invest an additional three billion dollars in its existing stakes in offshore oil and gas operations in Nigeria. Mr Ndu Ughamadu, the Nigeria National Petroleum Corporation (NNPC) spokesman said this in a statement on Sunday in Abuja. Ughamadu said Mr Yuan Guangyu, the Chief Executive Officer […]

  • Ecobank risk assets deteriorate as Kie bows out

    By FELIX OLOYEDE The exit of Ecobank Nigeria’s erstwhile Managing Director, Charles Kie, has raised a groundswell of speculation in the financial community as sector analysts believe that his exit was abrupt, untimely and suspicious. Over a period of two years, Kie had succeeded in reversing the banks bedraggled balance sheet and profit and loss […]

  • Blood, blood everywhere: Herdsmen, rustlers on the rampage

    –  Violence, a well-articulated plot to grab land – Expert  By AYOOLA OLAOLUWA Nigeria is gradually descending into a Hobbesian state with the growing killings in the Middle Belt, in addition to the destruction of lives and properties in the North West and Boko Haram insurgency in the North East. Defenseless citizens are being killed like […]

  • 2018 budget in jeopardy

    . Delay alone has reduced performance by 13% – Experts By UCHE CHRIS In all likelihood the 2018 budget will end like the three previous budgets of the President Buhari administration: a failure. Having been passed seven months after its presentation and half year gone; and with all the controversies surrounding its passage by the […]

  • MTN to miss market listing target

    By OKEY ONYENWEAKU A weak domestic economy in Nigeria may force telecommunications giant MTN to shift its earlier proposed August 2018 date for a local listing on the Nigerian Stock Exchange (NSE). Analysts believe that the date shift will allow the parties to the Offer plan a more successful listing arrangement that would guaranty full […]

  • APC crises deepens: Amaechi battles for relevance, Modu-Sheriff is new strongman

    By OBINNA EZUGWU Key actors in the ruling All Progressives Congress (APC) managed to keep up appearance to allow for a smooth transition at the party’s recently held national convention. Except for the exchange of blows among Imo and Delta States delegates, the convention was largely a success. But beneath the facade of orderliness, tensions […]

  • INEC declares Fayemi governor-elect in Ekiti

    The Independent National Electoral Commission (INEC) has declared Kayode Fayemi of the All Progressive Congress (APC) winner of the Ekiti Governorship Election held on Saturday. INEC’s Chief Returning Officer for the election, Professor Idowu Olayinka declared the result on Sunday. According to the Returning Officer, Kayode got 197,459 votes to defeat the Deputy Governor of […]

  • President Muhammadu Buhari said on Wednesday that Nigeria will soon sign up to a $3 trillion African free-trade agreement. Nigeria is one of Africa’s two largest economies, the other being South Africa. Buhari’s government had refused to join a continental free-trade zone established in March, on the grounds that it wishes to defend its own […]

  • PDP meets Obasanjo for advice on how to beat Buhari in 2019 polls

    The National Working Committee (NWC) of the Peoples Democratic Party(PDP) will meet with former President Olusegun Obasanjo in Abeokuta on Saturday to seek advice on how to achieve victory in the 2019 polls and beat incumbent Muhammadu Buhari. The National Chairman of PDP, Uche Secondus, made this known in Abeokuta while addressing journalists after a […]

  • GTBank Launches Social Impact Challenge, Aims to Fund Community Development Projects Nationwide

    Following more than two decades of consistent investment in community development, Guaranty Trust Bank plc is taking its Corporate Social Responsibility (CSR) another step further by launching a Social Impact Challenge that will fund dozens of innovative ideas designed and executed by members of the general public. Tagged #SimpleChangeBigImpact, the Social Impact Challenge invites individuals […]