Experts warn Nigeria’s infrastructure deficiencies may hinder AfCFTA gain
Experts at the 2024 Maritime Reporters Association of Nigeria Annual Lecture in Lagos warned that Nigeria's insufficient infrastructure may limit its capacity to fully profit from the $3.4 trillion African Continental Free Trade Agreement.The experts spoke in Lagos during the 2024 Maritime Reporters Association of Nigeria Annual Lecture, titled 'AfCFTA: Dismantling Barriers, Navigating Regional Trade.'
Speaking, Sola Adewunmi, President of the Nigerian Indigenous Shipowners Association, stated that the country lacked the necessary facilities to benefit from the AfCFTA deal.
"Because what's the use of having those items if there's no way to move them? And as shipowners, we keep questioning ourselves how equipped we are for this duty. Because we recognise that we lack the necessary facilities to take advantage of the AfCFTA benefits.
"And I hope that we use the opportunity of this interaction to speak to the authority, to let them know that Nigeria as a nation if we want to benefit from AfCFTA, we must get prepared in terms of acquisition of new vessels to suit those purposes," according to him.
He voiced concern that poor government policies are creating daily losses for many Nigerian investors.
"Every day, our fortunes dwindle. Adewunmi stated that people are losing money as a result of terrible policies and inadequate funding.
He noted that shipping is a specialised activity that requires incentives to allow indigenous shipowners to compete with major shipping nations.
"I can't imagine a Nigerian shipowner saying he wants to compete with somebody that is getting a loan at a better rate."
Dr Kayode Farinto, former Vice President of the Association of Nigerian Licensed Customs Agents, emphasised in his talk that for AfCFTA to succeed, government agencies must prioritise trade facilitation over revenue generation, even when under pressure to fulfil financial targets.
He remarked that the nation's maritime industry has suffered with logistical management.
"This is because logistics requires the use of a multimodal transportation system, but our reliance on the road alone is a stumbling block and a hindrance to the free movement of goods.
"The Ministry of Marine and Blue Economy needs to liaise with the Ministry of Trade either on private party agreement or take it as a core responsibility to ensure that our over-reliance on the road is stopped," claimed Farinto.
Meanwhile, Mr Godfrey Bivbere, President of MARAN, hailed AfCFTA as a ground-breaking African Union initiative aimed at creating a single market for products and services, easing unrestricted cross-border mobility, and harnessing the continent's enormous economic potential.
Bivbere, on the other hand, bemoaned that hurdles such as poor infrastructure, "regulatory bottlenecks, and operational inefficiencies continue to hinder the seamless flow of goods across the continent."
He emphasised that as the country embarks on the path, it is important to recognise the enormous impact that the AfCFTA has on our country, as well as the continent as a whole.
"By breaking down barriers and fostering closer economic ties, we pave the way for unprecedented opportunities, growth, and prosperity," he told us.
Earlier, Adegboyega Oyetola, Minister of Marine and Blue Economy, stated that Nigeria is dedicated to ensuring that the full benefits of the AfCFTA are realised.
Oyetola, accompanied by his Senior Special Adviser on Media, Ismail Omidpidan, emphasised that the government's commitment to AfCFTA has created new export potential for the marine sector.
He added that Nigeria has already launched exports through the Guided Trade Initiative, paving the way for increased trade flows across Africa.
Oyetola added that in July, the government achieved a significant milestone with the initial shipment ceremony under the AfCFTA's Guided Trade Initiative, emphasising that the action was a critical step towards improved trade and economic cooperation on our continent.
"In today's interdependent and globalised world, efficient and cost-effective maritime transportation systems that link global supply chains are the engine that would ultimately fuel economic development and prosperity," he claimed.
According to the minister, encouraging intra-Africa trade by removing national barriers creates chances for firms to reach continental markets, fostering industrialisation, job creation, and economic progress.
Nigeria formally began participating in AfCFTA under the Guided Trade Initiative a few months ago.
The African Continental Free Trade Area (AfCFTA) accord intends to create a single market for goods and services across Africa.
Leave A Comment