Nigeria has the largest economy and the most populous country in Africa. (Image via: iAfrica.com)

Nigeria Agrees to Sign Africa's Free Trade Agreement

Kirana Chandra Mumpuni Budiana
Politics & Economic
Economic
Jul 04, 2019
1783
The President of Nigeria, Muhammadu Buhari, made a statement on Twitter that the country will sign the African Continental Free Trade Agreement on July 7 2019. Inside the statement he also mentioned about the importance of trade for the nation. He said that Nigeria supports free trade as long as it is fair and conducted on equitable basis. As the Africa's biggest economy, Nigeria’s decision to join free trade agreement is important. This agreement aimed to boost manufacturing across the continent.

The African Continental Free Trade Agreement has been starting since May after ratified by the parliaments of 24 countries. The agreement will bring 54 members of the African Union (AU) together in a single market of 1.2 billion people. It can remove trade barriers such as tariffs across Africa. The agreement is expected to boost regional trade and allow companies to enter new markets. Currently, manufacturing industry accounts for only about 10% of the African Union's combined GDP of $3.4 trillion. This new trade agreement will make the sector more competitive and productive.

There are already 52 countries which had signed the agreement. That is including South Africa and Cameroon. However, Nigeria refused to commit. They said it needed consultation with domestic stakeholders before making a decision. Before they decided to join, Nigeria was worried about the greater competition that their manufacturers will have. In the end, Nigeria agrees to join the Africa’s free trade after the president reviewed an impact assessment of the agreement.

Source: https://edition.cnn.com/2019/07/03/business/nigeria-signs-afcfta-intl/index.html

Nigeria , Trade , Agreement , Africa , economy , market