Nigeria To Join Second Phase Of Guided Trade Initiative Under AfCFTA

Nigeria is all set to join Guided Trade Initiative (GTI)'s second phase, which aims to conduct climate-friendly, sustainable, continuous trade under African Continental Free Trade Area (AfCFTA).

Segun Awolowo, who serves as executive secretary of the National Working Committee of the African Continental Free Trade Area, Nigeria, has shared Nigeria's readiness to join the second phase of the GTI.

Awolowo noted that Nigeria reached a milestone in the first phase of the GTI, adding that this "successful pilot project has brought about positive development changes, capacity-building initiatives, and growth in the economy by impacting trade between Nigeria and other AfCFTA member-states," Punch reported.

He further noted that as Nigeria prepares to join the second phase, it will "demonstrate and strengthen specific objectives and trade relations" by "reducing trade barriers, streamlining customs procedures, ensuring infrastructure, and promoting value-addition with key industries."

Awolowo shared that the new administration, referring to President Bola Ahmed Tinubu's government, with its Renewed Hope agenda (which was introduced last year during the presidential campaign) is focused on addressing those challenges that impact trade negatively. For instance, logistics and transportation infrastructure.

"Simplifying customs procedures and strengthening trade-related institutions," he explained. "The checklist received from Ghana after the completion of the first phase requires the fulfillment of certain obligations, which Nigeria has begun to process vigorously."

Director of Trade in Goods and Competition, Mohammed Ali recalled that the Heads of state and governments met virtually in 2021 and announced the commencement of the AfCFTA agreement, noting that "AfCFTA is a very big train and it is a journey and this journey has leaders."

Ali noted that Nigeria is the biggest leader in this journey as it is the biggest economy in Africa. He went on to explain that any effort or step taken by Nigeria towards AfCFTA will be considered two steps - one for Nigeria and another one for the rest of the world.

"We have concluded that trade agreement and opinion market is not the end goal. The end goal is to have economic advancement and industrialization," he continued. "We use the market access as a tool to attract more funds and relations to build our economies."

Permanent Secretary, Federal Ministry of Industry, Trade and Investment, Dr. Evelyn Ngige said that GTI will help Micro, Small & Medium Enterprises (MSMEs) to enter bigger supply chains as "they don't have to start going through the process of obtaining facilities beyond their reach."

He added, "As being part of a larger supply chain, MSMEs will grow and move from micro to big markets that many people would want to be a part of."