Tag: AfCFTA

Governor Seyi Makinde of Oyo state has said that his administration will fully explore the benefits in the African Continental Free Trade Area (AfCFTA) to expand the state’s economy.

The governor stated this on Wednesday at the opening ceremony of the Consultative Forum on the Development of the African Continental Free Trade Area (AfCFTA) Sub-national Implementation Strategy for Oyo State held at the International Conference Center, University of Ibadan.

Makinde said the state would act as a significant player in AfCFTA with a view to unlocking more of its economic potentials to provide job opportunities and uplift the people of the state from poverty to prosperity.

The governor added that Oyo State Government would leverage its geographical location to maximize the benefits from AfCFTA by fostering cordial relationships with other African countries.

The governor identified seven areas that the AfCFTA would be beneficial to Oyo State.

Expatiating on the areas, Makinde said: “Since 2019, agribusiness has been one of the key drivers of the Oyo State economy. With cash crops like cocoa, cassava, maize, yams, and cashew nuts, we have agricultural produce that we can export to other African countries. We still have work to do in improving farming methods and adopting technology for value addition. 

“This leads us to point number two: facilitating the establishment of agro-processing industries to convert these raw produce into high-value exports.  

“I must say that this is the route that we have chosen here in Oyo State. We have made it one of our key policies to create an enabling environment for the private sector to thrive. Presently, we are working on constructing agro-industrial hubs. One at Fasola, in Oyo West Local Government Area, which is about 90% complete and the other, which we just started at Eruwa in Ibarapa East Local Government Area. 

“We are open to further private public and development agency partnerships.

“A third way that AfCFTA can benefit Oyo State is in trade and logistics.”

The governor added: “AfCFTA’s liberalisation of services trade can benefit Oyo State’s education, healthcare, and ICT sectors. Also, taking advantage of our international border, we can attract students, medical tourists, and tech-based businesses from neighbouring countries. To do this, we have to position Oyo State as a hub for quality education and healthcare services. So, this is one area we should be paying attention to. As I always say, the best thing we can leave behind after our tenure is institutions for the future. Of course, policies drive institutions.”

According to the governor, “AfCFTA provides opportunities for Small and Medium-sized Enterprises (SMEs) to access larger African markets. And here in Oyo State, we have thousands of SMEs. Some are already trading internationally, but with AfCFTA a lot more can be done. The upside is that this will create more job opportunities for our dear state and contribute to growing our economy.”

Other benefits identified by the governor are in the area of tourism and infrastructure. 

In her opening remarks/presentation on the rationale, role and process for developing Oyo State AfCFTA sub-national strategy and objectives of the consultative forum, Chairperson of the technical working committee who also doubles as the Special Adviser, International Trade and African Continental Free Trade Area (AfCFTA), Ms Neo Theodore Tlhaselo, said the Consultative Forum on the Development of the African Continental Free Trade Area (AfCFTA) Sub-national Implementation Strategy for Oyo State is mandatory as set by the AfCFTA Secretariat in the crafting of a domesticated AfCFTA strategy to delve into a crucial conversation about future of trade, economic empowerment and also explore ways to create real tangible avenues for success of businesses, communities and individuals across the state.

She added that the state government has a unique comparative advantage that sets it apart from other states through agribusiness, manufacturing, investment, market expansion which would add more value to the economy of the state.

Ms Tlhaselo charged stakeholders to support Governor Makinde’s development agenda for progress and building a stronger Oyo State that can play a leading role in AfCFTA.

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In his goodwill message, the Osun State Commissioner for Commerce and Industry, Rev’d Bunmi Jenyo, while promising Osun State Government’s support to the vision, lauded the developmental strides of Governor Makinde in transforming Oyo State and urged the South West states to prioritize and maximize opportunities to invest in manufacturing, harness opportunities in agriculture and tourism, increase employment opportunities and cultural exchange among other countries.

Also in their separate goodwill messages, the Executive Director/Chief Executive Officer, Nigerian Export Promotion Council, Mrs Nonye Ayeni, represented by the Southwest Regional Coordinator, Mr Ganiyu Gbolagade, and Dr Daniel Gbadero, representing the Organized Private Sector (OPS), noted that the project would boost trade, foster economic growth and accelerate development. 

They encouraged stakeholders to be committed and see it as a collective task.

Earlier in his welcome address, the State Commissioner for Trade, Industry Investment and Cooperative, Mr Adeniyi Adebisi, noted that the essence of African Continental Free Trade Area (AfCFTA) is to eliminate trade barriers and accelerate the intra African trade position in the global market by strengthening Africa’s common voice and policy space in global trade negotiations, adding that the project is an opportunity for Oyo State to promote socio-economic growth development, reduce poverty and broaden its economic inclusion.

He explained that Oyo State Government, under the leadership of Governor ‘Seyi Makinde, has embraced all the objectives and protocols involved in the AfCFTA programme. 

He also assured that the committee working on the programme would leave no stone unturned in ensuring a conducive environment for trading activities in Oyo State which is the hallmark of economic development.

The event had in attendance the Deputy Governor of Oyo State, Barr. Abdulraheem Bayo Lawal; former deputy governors of Oyo State, Engr Hamid Gbadamosi and Barr. Hazeem Gbolarumi; former Oyo State’s First Lady, Chief Mrs Mutiat Ladoja; the Chief Judge of Oyo State, Justice Iyabo Yerima; and a former Minister of Trade and Investment, Chief Mrs Onikepo Akande.

Also in attendance were former Speaker of the House of Assembly, Senator Monsurat Sumonu; Secretary to the State Government, Prof. Olanike Adeyemo, Chief of Staff to the Governor, Otunba Segun Ogunwuyi; Head of Service, Mrs Olubunmi Oni, mni; Deputy Chief of Staff, Hon Fola Oyekunle; Chairman of Local Government Chairmen in Oyo State, Hon. Sikiru Sanda; Chairman and Co-chairman Elder’s Council, Dr Saka Balogun and Elder Wole Oyelese; Babaloja General of Oyo State, Chief Yekini Abass service commanders, labour union leaders, religious leaders and traditional rulers, among other dignitaries.

The Organisation of Trade Unions of West Africa (OTUWA) and African Regional Organisation of the International Trade Union Confederation (ITUC-Africa) have said called for the inclusion of social and labour rights in the African Continental Free Trade Area (AfCFTA).

The unions said the non-inclusion of labour and social rights in the agreement would put workers at risk and increase poverty on the continent. 

The trade union bodies stated this in Abuja, yesterday at the sub-regional workshop on the AfCFTA and trade union advocacy for labour rights and participation with the theme: “AfCFTA and Trade Union Advocacy for Labour Rights and Participation.”

It would be recalled that the AfCFTA policy came into effect in March 2018 during the 10th Extraordinary Session of the Assembly of the African Union.

The unions noted that the removal of trade barriers would have serious consequences for labour by impacting jobs, workers protection, social security and union rights.

Acting President of OTUWA, Sophie Kourouma, said it was important that workers participate in the implementation process of the AfCFTA at national, regional and continental levels.

She said: “When tariffs and other barriers are removed, companies have the incentive to move production to places with the lowest cost. Jobs are then transferred from countries with higher wages and better labour protections to countries with a lower cost of production. 

“This can trigger what is called a ‘race to the bottom’, where countries try to out-compete one another by lowering regulations and labour protection.

“Today, with the issues of increased poverty, inequalities and the transition to the new world of work among others, it becomes even more expedient for workers to be active participants in the implementation process of the AfCFTA at national, regional and continental levels.”

She noted that decent work, occupational health, and labour migration among other workplace issues are best administered when trade unions are adequately engaged in the process.

The General Secretary of ITUC-Africa, Joel Odigie said the agreement would boost trade among the sub regional countries.

He, however, called for the protection of workers rights and interest to drive the process.

The ITUC-AFRICA general secretary said: “First African workers welcome the AfCFTA initiative because it is an initiative that can contribute to economic growth, there are no fear per say but we think the component of the instrument is not complete, especially when you are not able to inject social issues into trade agreement. 

“We are not saying that the instrument itself becomes a protectionist instrument. But we are saying governments should put safeguards that ensure due diligence in the whole process. 

“Trade is an implication of how the value chain can function effectively. In other words, how do you, within the process, produce value? And in the process of the value chain, which we all know is a global process, it involves workers, it involves men and women.

Read Also: AfCFTA, inclusive trade to unlock Africa’s economic growth, says GABI

“How do you ensure that their human and labour rights are protected? How do you ensure that their safety at work is guaranteed? How do you ensure that the goods and services at the end you will be trading in are not the product of forced labour, they are not the product of child labour?”

The Executive Secretary of OTUWA, John Odah lamented that the interest of workers have not been adequately captured in the agreement. 

He said: “The trade unions are also worried that labour rights and protection in this agreement are not adequately captured. This is an area that we are insisting that the African Prime Ministers of Trade who are primarily involved in the implementation of this agreement look into the agreement again now that it is up for review.

“There should be a protocol or labour right in all the subject areas there is an agreement on so that the rights of workers; whether in Nigeria, or Liberia or South Sudan will not be neglected on the account of AfCFTA.”

…Nigeria in vantage position to spearhead continent’s technological transformation — Shettima

The federal government has launched a comprehensive strategy to lead Africa’s digital trade revolution under the African Continental Free Trade Agreement (AfCFTA).

Vice President Kashim Shettima announced the plan on Friday, July 19, highlighting Nigeria’s position as the continent’s largest ICT hub and its potential to spearhead technological transformation.

A statement issued by Senior Special Assistant to the President on Media and Information, Office of the Vice President, Stanley Nkwocha, indicated that the strategy is part of the Renewed Hope Agenda of President Bola Ahmed Tinubu’s administration to harness trade as a catalyst for economic growth and continental cohesion in line with AfCFTA objectives.

Shettima gave his highlight while delivering the keynote address during a Stakeholders Summit with the theme: “Digital Trade in Africa: The Renewed Hope Strategy,” held at the Banquet Hall of the Presidential Villa, Abuja.

“We are in a vantage position because we are the continent’s largest ICT hub, and as such, we must lead the way to the future of this peculiar wave of the Industrial Revolution.

“Our collaboration must prioritize comparisons of our policy initiatives to those of developed economies and fine-tune them to sustain our place and fast-track our growth,” the Vice President stated.

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Shettima outlined key components of the roadmap to include the implementation of AfCFTA’s Digital Trade Protocol and the development of expansive technical talent hubs.

The plan, according to him, also focuses “on enhancing digital infrastructure investments, promoting disruptive innovation and entrepreneurship, and ensuring the alignment of multiple government agencies to support digital trade initiatives.”

The VP stressed the need for strong synergy between the public and private sectors in implementing the AfCFTA’s Digital Trade Protocol, just as he assured that the federal government remains committed to investing in digital infrastructure and human capital development to drive the process.

He continued: “Our collaboration must prioritize comparisons of our policy initiatives to those of developed economies and fine-tune them to sustain our place and fast-track our growth. For a sector upon which all others rely to survive, digital technologies hold the nation together, and we cannot afford to slow down.

“Our programmes, from the Investment in Digital and Creative Enterprises (iDICE) to the ongoing intervention to train 3 million technical talents by the Ministry of Communications, Innovation and Digital Economy, to the Outsource to Nigeria Initiative (OTNI), are lifelines in our digital economy.

“They offer us an avenue to not only maximize our potential but also commit to the adoption of the Digital Trade Protocol within AfCFTA,” VP Shettima further explained.

Earlier in his remarks, Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijjani, said the Tinubu administration is investing significantly in every aspect of the digital trade protocol, to harness opportunities in the country and continent at large.

He explained that through innovative policies and programmes such as the 3 Million Technical Talent (3MTT) programme, data protection policy and improved investments in digital infrastructure, the administration is equipping the country’s young population for the opportunities of the present and future.

Underscoring the significance of technology in trading across the continent, Dr Tijjani said opportunities that exist within the single market area are unprecedented and could best be harnessed through effective collaboration and networking facilitated by digital technology.

In his welcome address, the Special Assistant to the President on ICT Policy, Dr. Salihu Dasuki Nakande, thanked President Tinubu and Vice President Shettima for their commitment and dedication to the Renewed Hope Agenda, which he said has laid a solid foundation for the digital transformation journey in the country.

He said their continuous support has led to the discourse on digital transformation which will equally lead to a prosperous Nigeria.

Quoting the Vice President in his address at the World Economic Forum in Davos earlier this year, Dr. Nakande said: “Looking ahead, there is a need for speed and cohesion among African countries, the idea of AfCFTA must be revived and there is no hope in keeping waiting in this world, we must act swiftly and together ensure that the AfCFTA succeeds.

“We will explore how the digital economy and AfCFTA can transform Nigerian trade, boost economic growth, support livelihoods and improve the lives of our citizens.”

According to him, Nigeria is projected to be a 1 trillion-dollar economy by 2026 and to achieve this, a digital economy is necessary, even as he noted that the next step in Nigeria’s digital future is regional integration, aligning with the African Union’s Digital Transformation Strategy for Africa, supported by Digital Protocol.

On his part, the Head of Prosperity, British Deputy High Commission, Mr Kris Kamponi, said the United Kingdom is a proud champion of open, free and fair trade, noting that it has positively impacted the UK economy.

He said the Digital Trade in Africa initiative is vital and critical in addressing all of the issues relating to growing prosperity for Africa.

In her presentation, a Senior Research Officer at ODI, Dr Prachi Agarwal, commended Nigeria for its visionary approach and leadership in prioritizing digital trade, pledging the organisation’s commitment to supporting the operationalization of the AfCFTA.

She said the ODI firmly believes in the transformative potential of digital technology, especially in unlocking market opportunities through the AfCFTA framework; hence, its resolve to partner with stakeholders in the project.

Also present at the event were the Executive Secretary of the Nigeria Shippers Council (NSC), Mr Pius Akutah; Director General of National Information Technology Development Agency (NITDA), Mr Kashifu Inuwa; Registrar-General of the Corporate Affairs Commission (CAC), Mr Hussaini Magaji; Director General of Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Mr Charles Odii; Managing Director of Nigeria Commodity Exchange, Mr Anthony Atuche, and representatives of development partners, among others.

The launch which will be held at Apapa Port, on Tuesday, July 16, is being convened by the Nigeria AfCFTA Coordination Office on behalf of the government of the Federal Republic of Nigeria and the AfCFTA Secretariat.

Expected dignitaries at the launch include President Tinubu, the Secretary to the Government of the Federation, the Secretary-General of the AfCFTA Secretariat, the Minister of Trade, Industry, and Investment of Nigeria, Minister of Finance and Coordinating Minister of the Economy, other Government Officials, Ministers Responsible for Trade, the Diplomatic Corps, International Development Partners, Heads of Businesses and the Press from the rest of the Continent.

According to the national coordinator of Nigeria AfCFTA Coordination Office, Olusegun Awolowo, “Nigeria signed the AfCFTA Agreement on 7 July 2019, becoming the 34th AfCFTA State Party. With a robust economy across different industries and a huge potential effect on value chains across the continent, Nigeria’s readiness and preparedness for preferential trading under the AfCFTA preferential trade regime would immensely contribute to repositioning the continental market as a global trade market and rallying point”. The National Coordinator further stated that, “Nigeria is ready to unleash an army of exporters into Africa.”

The key objectives are to demonstrate and showcase Nigeria’s trading under the AfCFTA, and that businesses in Africa can take advantage of the GTI to trade, as well as the processes through which the AfCFTA can be effectively engaged. It is an indication of the readiness of governments of State Parties to support the private sector, businesses, etc. take advantage of the AfCFTA. The launch signposts the readiness of the AfCFTA Secretariat to support the AfCFTA implementation by the private sector and Member States.

The launch of Nigeria’s participation in the second phase of the GTI signals a new dawn for trading under the AfCFTA as several Nigerian businesses are eager and prepared for export and shipment of indigenous products within the continent with Kenya, Cameroon, Uganda, Zambia, and Egypt as target markets. This is to demonstrate Africa’s businesses’ ability and readiness to trade under the framework of the AfCFTA.

“Everything Africa needs for Africa is already in Africa,” said Awolowo.

…advocates implementation of local content laws to protect indigenous companies

An indigenous oil firm, Nestoil Limited on Tuesday, July 2, sought the removal of free trade barriers from the African Continental Free Trade Area (AfCFTA).

Speaking in a panel discussion titled: “Exploration of Local Capacity: Maximizing Regional Opportunities,” at the Nigerian Oil and Gas 2024 (NOG) Energy Week in Abuja, its chairman, Ernest Azudialu-Obiejesi insisted that obstacles inhibiting international trade must be removed for progress.

He said: “And that is what the African continental free trade zone is trying to achieve so that they will break up the barriers, break up all the things that are inhibiting other countries from going to other countries to do business.

“Once all those things are broken and harmonization is done, it’s easy for Nigerians to export the capacities we have in countries. And not by just Nigerians running away to go and work overseas.”

He also called on the Nigerian government to ensure effective implementation of the local content laws, to protect the indigenous companies in the oil and gas sector.

He admitted that Nigeria over the years has built much capacity in the sector which can be exported to other countries.

He said: “Nigeria has built quite a lot of capacities within the country. And one of the areas where we can pride ourselves is in the area of oil and gas. And we know that some of these capacities, we can’t export them, but the ones in the oil and gas, we can export to other countries. And exporting them means we need laws to make sure that those companies that are in Nigeria are already developed better.

“And to ensure those capacities in terms of human resource, experiences, capital, and equipment, so we can export them to other countries outside Nigeria. But also in doing that, I did quite recognize that one of the enabling tools is the NCDMB which is the Local Content Board. That content board has done quite well.

He however noted the setbacks in the sector, in terms of how enacted laws are enforced to protect the local companies. He added that one of the reasons why the local companies are not doing very well is because they don’t have a good bidding process.

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“And there are a lot of people who are briefcase contractors who don’t have the capacity, but they will tell you they have a connection, and because of that, they go and bid for jobs they cannot do at the lowest prices. So these things have to be checked.

“So that when you are bidding for a job in the oil and gas industry, you compare apples to apples, not apples to oranges. So people of the same technical capacity can bid for a job and when they are given that job, they’ll be able to do the job timely and within budget.

“So those are things we are trying to advocate. And by the time Nigeria has entrenched itself with all this capacity, very well as we have done, we can then go to other countries and then start helping them. Start also making money by bringing those experiences to all those countries.

He explained that Nest Oil had grown from a service company in 1991 to an oil-producing company.

The company which according to him has become one of the biggest pipeline companies in Nigeria, serving the IOCs.

According to him, there was a need for countries, including Nigeria to enact enforceable laws, stressing that lack of enforcement laws on the sector will leave local companies undeveloped while foreign investors repatriate investments to their countries.

He said: “I want to tell you that if you want your local content or if you want your capacity to grow or you want a transfer of technology or a state of even capacity in your country, you have to enact enforceable local content laws that you have to be able to enforce. Making law is one thing.

“The other one is enforcing it, administrating it, and making sure that it works. Because if you do not do that, what you’re going to see is a typical example where investments come to a country, stay, and the country becomes a major producer for 50 years, and the whole money will just be drained out of that country. The locals will not be able to develop.

In his remarks, Abdulmalik Halilu, Director, Monitoring & Evaluation, Nigerian Content Development & Monitoring Board (NCDMB) stated that the Board ensures that the necessary procedures that will accelerate approvals for contracts to be awarded to qualified Nigerians are in place.

He said that the Board has remained committed to ensuring that first consideration is given to Nigerian companies, irrespective of the type of company while ensuring that local content is not compromised based on standards.

“So we have pushed the discussion around standardization by making sure that the Nigerian content equipment certificate that you need to obtain for you to be able to participate in the industry has elements of certification, be it ISO certification, process certification, and so on.

“So that enables us to ensure that all these companies operate in global standards, and that is why you can see that they are able to operate in countries like India, the U.S., and so on. Finally, all of us as Nigerians, as investors, must have faith in the law.

“We have been very lucky. Today we have a president who also supports local content. That’s why there’s a push with the enabling executive orders. Beyond that, we also have to enable business efforts by the government to ensure that all regulators, not just NCDMB, ensure that they make life easy in terms of business enablement.

“So all these point to the fact that build capacity before you talk about exporting capacity, and that is why we’re having this discussion,” he said.