Experts at the 2024 Maritime Reporters Association of Nigeria Annual Lecture in Lagos cautioned that Nigeria’s inadequate infrastructure could hinder its ability to fully benefit from the $3.4 trillion African Continental Free Trade Agreement.
The experts shared their views in Lagos during the 2024 Maritime Reporters Association of Nigeria Annual Lecture, themed ‘AfCFTA: Dismantling Barriers, Navigating Regional Trade.’
Speaking, the President of the Nigerian Indigenous Shipowners Association, Sola Adewunmi, stressed that the country lacks the facilities required to take advantage of the AfCFTA agreement.
“Because when you have those goods and there are no means of transporting them, then what is the essence of having them? And we shipowners keep on asking ourselves how prepared are we for this task. Because we realize that we don’t have the facilities to harness 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,” he said.
He expressed concern that ineffective government policies were causing daily losses for many investors in Nigeria.
“Every day our fortunes keep on dwindling. Dwindling in the sense that people are losing money due to bad policies and inadequate funding,” Adewunmi said.
He stated that shipping is a specialized trade, and for indigenous shipowners to compete with major shipping nations, incentives are needed to enable them to achieve this.
“I can’t imagine a Nigerian shipowner saying he wants to compete with somebody that is getting a loan at a better rate.”
In his address, the former Vice President of the Association of Nigerian Licensed Customs Agents, Dr Kayode Farinto, emphasized that for AfCFTA to succeed, government agencies must prioritize trade facilitation over revenue generation, even when under pressure to meet financial targets.
He noted that the nation’s maritime industry has struggled in the area of logistics management.
“This is because logistics entails the involvement of a multimodal transport system but our reliance on the road alone is a stumbling block and a barrier to the free flow of trade.
“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,” Farinto said.
Meanwhile, the President of MARAN, Mr Godfrey Bivbere, described AfCFTA as a groundbreaking initiative by the African Union aimed at establishing a single market for goods and services, facilitating free cross-border movement, and unlocking the continent’s vast economic potential.
Bivbere, however, lamented that barriers such as inadequate infrastructure, “regulatory bottlenecks, and operational inefficiencies continue to hinder the seamless flow of goods across the continent.”
He pointed out that as the country embarks on the journey, it is pertinent to remember the profound impact that the AfCFTA holds for our nation, and indeed, the continent at large.
“By breaking down barriers and fostering closer economic ties, we pave the way for unprecedented opportunities, growth, and prosperity,” he advised.
Earlier, the Minister of Marine and Blue Economy, Adegboyega Oyetola, affirmed that Nigeria is committed to ensuring the full benefits of AfCFTA are realized.
Represented by his Senior Special Adviser on Media, Ismail Omidpidan, Oyetola reiterated that the government’s commitment to AfCFTA has opened new export opportunities for the marine sector.
He revealed that under the Guided Trade Initiative, Nigeria has already begun shipments, setting the stage for greater trade flows across Africa.
Oyetola stated that in July the government recorded a significant milestone following the inaugural shipment ceremony under the Guided Trade Initiative of the AfCFTA stressing that the move was a crucial step towards an enhanced 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 said.
According to the minister, by promoting intra-Africa trade through the removal of national barriers, doors of opportunities are opened for businesses to reach continental markets, thereby fostering industrialisation, job creation, and economic growth.
A few months ago, Nigeria officially launched its participation in AfCFTA through the Guided Trade Initiative.
The African Continental Free Trade Area (AfCFTA) agreement is a trade agreement that aims to create a single market for goods and services across Africa
