Secretary-General of the African Continental Free Trade Area, His Excellency Wamkele Mene, and Oyo Acting Governor, Bayo Lawal, have declared that the AfCFTA will unlock prosperity, create employment and boost the economy of the state.
Mene maintained that Oyo State’s decision to integrate with the rest of Africa through the AfCFTA, will result in the expansion of economic opportunities for the state, as according to him, the initiative will boost the state’s trade volume, unleash economic prosperity on the youth, the informal sector, farmers, manufacturers and entrepreneurs in the state.
Speaking at the launch of the Oyo State Sub-national Implementation Strategy for the African Continental Free Trade Area (AfCFTA) at the International Conference Centre, University of Ibadan, on Friday, Mene noted that Oyo State has, by leveraging on the opportunities provided by AfCFTA, become a beacon of resilience, competitiveness, job creation and prosperity for all.
He added that the implementation strategy launched by the state would tackle the challenges of youth unemployment, drive economic growth, reduce poverty and improve the living standards of residents of the state, as the strategy has short, medium and long term benefits for the state.
The AfCFTA Secretary-General lauded Governor Seyi Makinde for his vision in recognising the importance of AfCFTA and in driving the launching of the implementation strategy.
He described the launch as a bold step, which attests to Governor Makinde’s visionary leadership and understanding that “AfCFTA is not a distant aspiration, but a present day opportunity to unlock prosperity, create employment for young people, for players in the informal sector, for farmers, entrepreneurs and manufacturers in Oyo State.
He said: “The AfCFTA Secretariat stands ready to work with you, to support you within our modest means to implement this strategy, to ensure that when we say Oyo State was the first state across the continent to have a sub-national strategy that that does not end as a slogan, that indeed it does become a reality.”
In his speech, the Chief Host of the event and Acting Governor of Oyo State, who spoke on behalf of Governor Makinde, Lawal said the launch of the implementation strategy was a statement of intent and another definitive step to show that the state means business and is ready to be proactive and strategic to external trade policies.
He pointed out the medium, short and long term benefits of the strategy, stating that it will help to create employment, prepare farmers, artisans and entrepreneurs in the state for export and reduce poverty exponentially.
According to him, the strategy will, among other things, improve the export readiness of the state’s Small and Medium Enterprises through training, support for compliance with standards on packaging and certifications and also signal to investors that Oyo State is ready and that it is a good place to invest.
Makinde added that the strategy will equally help to focus by identifying priority sectors such as agriculture, manufacturing, and the creative industry, while the state can also devote resources where they will bring the highest returns.
He said: “Our gathering here today is not just for show. As of now, no sub-national entity in Nigeria or Africa has formally adopted the domestic strategy to operationalise the AfCFTA Agreement. But today, Oyo State becomes the first of the 591 sub-nationals in Africa to create an AfCFTA Implementation Strategy.
“You may ask, why now? Some people who are used to politics without purpose may begin to look for ulterior motives. Some may even ask whose interest will this serve? Let me declare that we are acting now because we believe that while many states are waiting for a perfect alignment, we know that the sooner you prepare, the sooner you gain and that is why Oyo State chose not to wait.
“Another question you may hear is this; does the Constitution of the Federal Republic of Nigeria, 1999 (as amended) even allow a state government to do this? Isn’t Foreign Trade Policy the exclusive preserve of the Federal Government? The answer is well, yes. The constitution makes it clear that treaties and agreements are negotiated and ratified by the Federal Government. Tariffs, border protocols and Customs are federal matters, but, and this is important, states have significant powers when it comes to economic development.
“States control local infrastructure, promote investments, regulate activities within their borders and are responsible for agriculture, SMEs development, standards at the state levels and so on.
“So, what we are doing today is what scholars call para-diplomacy; that is engaging externally on economic matters without signing new treaties. When Nigeria ratifies an international agreement, that agreement becomes binding on the whole country. But, unless states align their policies and prepare their own systems, the benefits will pass them by.
“By our action today, we are preparing Oyo State’s systems; that is, regulations, standards, infrastructure, and institutional readiness and investment incentives such that when the federal provisions apply, we will be ready to benefit.
“Let me assure you that this strategy is legally sound, as it is about domestic alignment, readiness, reforms and business enablement. It is about competence and not competition with the Federal Government.
“Someone may ask; is this another jamboree or what exactly are the benefits for Oyo State? Are there real measurable gains in the short term, in the medium term and in the long term? Let me tell you what this strategy will deliver. In the immediate term, this strategy will improve the export readiness of our Small and Medium Enterprises through training, support for compliance with standards on packaging and certifications.
“It is also a signal to investors to tell them that Oyo State is ready and this is a good place to invest. It will also help to focus by identifying priority sectors such as agriculture, manufacturing, and the creative industry. We can devote resources where they will bring the highest returns.
“People talk about the Port in Lagos as an advantage that drives its economy. Well, this is our own port. With our proximity to the Benin Republic, Oyo State can legally boost cross-border trades, improve logistics infrastructure and create jobs in all support services that go with it.
“In the long term, this strategy will attract foreign direct investments into our priority sectors and give our businesses access to a single African market of about 1.4 billion people and diversify our economy so that we rely less on receipts from oil and more on value-added productions. And, as incomes rise for our farmers, manufacturers and artisans, state revenues will also grow.
“You have already seen how we increased our revenues without increasing taxes. We did this by helping people see that their taxes are not a burden but a partnership, funding infrastructure and services that create even more opportunities.
“These steps we are taking now will ensure that long after we have left office, Oyo State will become a true trade hub for West Africa. With strong infrastructure, high standards and reliable connectivity, we will attract more regional headquarters, connection centres and processing plants, which will see poverty and inequality reduced, because jobs will become more readily available and incomes more stable. Oyo State will be seen as a leader setting the templates for others to follow, as we are the pacesetter state.”
Earlier in her welcome address, Special Adviser to Governor Makinde on International Trade and AfCFTA, Ms Neo Theodore Tlhaselo, described the implementation strategy launch as a call to action and a significant signal that Oyo State is open for business locally and across Africa, adding that it also signifies a commitment to sustainable economic growth and that leaves no resident of the state behind.
According to her, the launch of the implementation strategy by the state will position it to take full advantage of the immense opportunities, which the AfCFTA, a historic continental trade integration, provides in terms of increasing the state’s production capacity, increasing trade volume and expanding the economy of the state.
Tlhaselo, who commended Governor Makinde for his leadership and inspiration in seeing the vision through, explained that the implementation strategy being launched was built around five pillars, namely; the productive capacity and value chain development, the trade facilitation and infrastructure, the market access and export readiness, the finance and investment mobilisation, the institutional framework, and monitoring and evaluation.
She appreciated the AfCFTA Secretary-General for leading the continent into the integration, noting that he is a man with the passion to see that Africa unites and it is able to realise the endeavour of being a single market.
She said: “Ladies and gentlemen, this launch of this strategy is a call to action. It is a signal that Oyo State is open for business, not just locally, but across Africa. It is a commitment to inclusive, sustainable economic growth that leaves no one behind.”
Also in their separate goodwill messages, the Rwanda’s High Commissioner to Nigeria, Christophe Baziwamo and Sierra Leone’s Deputy High Commissioner to Nigeria, Major-General Dauda Fred Alpha, hailed Governor Makinde’s vision and leadership, noting that the AfCFTA implementation strategy launch is a momentous and historic achievement, aimed at fostering greater economic integration in Africa.
According to Bazivamo, the event is “more than a policy launch, but a statement of courage that Oyo State is ready not only to participate in Africa’s future, but to help shape it,” as he added that the strategy required political will and administrative capacity at the state and local levels.
Noting that the AfCFTA is the largest free trade area since the creation of the World Trade Organisation, the Rwanda High Commissioner to Nigeria said: “I commend the visionary leadership of Your Excellency Governor Makinde. By launching this sub-national strategy, you are positioning Oyo State not only as a beneficiary of Africa continental free trade area, but as a contributor to Africa’s integration story.
“Other sub-national governments across our continent will surely look to Oyo State as a model. Our continent’s future lies in unity, innovation, and shared progress. Oyo State has taken a bold step forward today. Rwanda is proud to work alongside you on this journey.”
Sierra Leone’s Deputy High Commissioner maintained that the launch of the AfCFTA implementation strategy will unlock much economic potential for Oyo State, adding that the Republic of Sierra Leone “stands ready to partner with Oyo State on the initiative.”
