ZAINAB JUNAID
As Nigeria struggles to find its footing in the African Continental Free Trade Area (AfCFTA), concerns are growing about the ability of local businesses to compete with their counterparts from other African nations. The AfCFTA agreement, which came into effect in 2021, aims to create a single market for goods and services across Africa, fostering intra-continental trade and economic integration.
However, Dr. Segun Musa, CEO of Widescope International Group and Vice President of the National Association of Government Approved Freight Forwarders (NAGAFF), has warned that Nigeria’s lack of production capacity and infrastructural deficiencies may render local businesses uncompetitive in the AfCFTA market.
“Nigeria needs to wake up to the reality of AfCFTA,” Dr. Musa stated. “We can’t just sign agreements without putting in place the necessary infrastructure and support systems for our local businesses to thrive.”
Dr. Musa argued that the government’s focus on revenue generation through customs duties is misguided, and that a more sustainable approach would be to support local production and entrepreneurship.
“If we don’t have anything to sell, we’ll just be importing goods from other countries,” he says. “That’s not how you build a strong economy.”
To address these challenges, Dr. Musa urged the Nigerian government to prioritize support for local businesses, particularly in the areas of production and entrepreneurship. This, he believes, can be achieved through initiatives such as providing access to finance, training and capacity building, and infrastructure development. By supporting local businesses, the government can help them become more competitive in the AfCFTA market.
The challenges facing Nigerian businesses are numerous, he said, noting the dilapidated state of the country’s infrastructure, including roads, ports, and energy supply. “This makes it difficult for businesses to operate efficiently and effectively. Additionally, the cost of doing business in Nigeria is high, due to factors such as corruption, bureaucracy, and insecurity”.
Despite these challenges, Dr. Musa remains optimistic about the potential of AfCFTA to transform Nigeria’s economy. He believes that with the right support and infrastructure in place, Nigerian businesses can compete effectively in the AfCFTA market. “We need to believe in ourselves and our abilities, we can’t just sit back and wait for others to do things for us,” the CEO said.
To achieve this goal, Dr. Musa advocated for a collaborative approach between the Government, Private Sector, and other Stakeholders.
He believes that by working together, Nigerians can overcome the challenges facing the country and create a more prosperous future. “We need to work together to achieve our goals, we can’t do it alone.
“Nigeria’s participation in AfCFTA presents both opportunities and challenges. While the agreement has the potential to boost Nigeria’s economy, the country’s lack of production capacity and infrastructural deficiencies may hinder its ability to compete effectively. By prioritizing support for local businesses and addressing the country’s infrastructure challenges, Nigeria can unlock the full potential of AfCFTA and create a brighter future for its citizens,” he concluded.
