By Emeka Ejere

Benedict Oramah, president, Africa Export-Import Bank urges Nigeria to sign the African Continental Free Trade Agreement because of its numerous opportunities to the country

THE African Continental Free Trade Agreement, AfCFTA, will create opportunity for African economies, including Nigeria, to take over from China as the world’s manufacturing hub.

Benedict Oramah, president of African Export-Import Bank, Afreximbank, stated this at the 2019 edition of the Bullion Lecture held in Lagos on Tuesday, March 26.

Oramah, who spoke on the subject: “Leveraging The African Intercontinental Free Trade Agreement for Nigeria’s Economic Development,” argued that while China exports 45 billion US dollars of light manufactures into Africa, Nigeria and other African countries can expect to fill that void if they take advantage of the tariff and non-tariff reductions in the AfCFTA.

He said Nigeria stands a great chance of enlarging foreign direct investment, FDI, inflows through the AfCFTA, pointing out that as the largest economy and the most populous in Africa, it presents an attractive domestic market base for foreign investors interested in manufacturing for exports to the rest of Africa.

“Today, FDI inflows to Nigeria amounts to about US$3 billion, 90 percent of which goes to the oil sector. This can change positively with the AfCFTA”, he stated.

Oramah, however, noted that Nigeria’s delay in signing to the free trade deal is understandable as such a serious issue requires carrying everyone along.

“It is understandable that Nigeria has not yet made a decision regarding signing the AfCFTA, because entering into such an agreement must not be taken lightly.

“It is important to carry everyone on board. Broad consultation is most critical for the success of the AfCFTA at national and continental levels.”

Recalling the seed of AfCFTA was sown in Nigeria, Oramah said:

“Following the cries of Kwame Nkrumah in the 1960s for Africa to Unite, it was here in Lagos that the first concrete steps were taken some 39 years ago in April 1980, when the Lagos Plan of Action was adopted by the erstwhile Organization of African Unity.

“And in 1991, Nigeria once again gave impetus to the African integration project when the Abuja Treaty set out clear plans for Africa’s economic integration. The AfCFTA, which was signed in Kigali, Rwanda on March 21, 2018, was in line with the Abuja Treaty expectations.

“So distinguished ladies and gentlemen, the child that was conceived in Nigeria was born in Rwanda. And with the emergence of that child, Africa sees a renewed hope, a reinvigoration to chart a new course.

The Bullion Lecture, a platform conceptualised by the Centre for Financial Journalism, CFJ, Nigeria for lively discourse on national and international issues, is always delivered by first-rate academics or professionals, the organisers said.