Increased Private Sector Engagement in AfCFTA Policy Development
The Central Bank of Nigeria (CBN) and the Federal Ministry of Industry, Trade and Investment are advocating for enhanced participation from the private sector in shaping economic policies. They emphasize the need for increased business input to effectively reduce cross-border trade barriers and accelerate the implementation of the African Continental Free Trade Area (AfCFTA).
This appeal was made during a business symposium organized by Citibank in Abuja, where policymakers, regulators, financial institutions, and business leaders from Nigeria, Ghana, and Ivory Coast gathered to discuss strategies to bolster trade along West Africa’s critical economic corridor.
Financial Intermediation as a Pillar of AfCFTA Success
Lamido Yuguda, CBN Vice President for Financial System Stability, highlighted the importance of efficient financial intermediation in facilitating the expansion of intra-African trade under the AfCFTA. He noted that improvements in cross-border payment systems, foreign exchange markets, and access to trade finance are crucial for lowering transaction costs and ensuring smoother trade flows across the continent.
Yuguda further underscored that central banks must act as enablers by developing robust payment and trade systems that provide necessary financial access for cross-border businesses. Addressing attendees, he stated, “The Central Bank of Nigeria is committed to enhancing financial stability while promoting regional integration.”
Nigeria’s Industrial Potential Within AfCFTA Framework
John Enoh, Minister of State for Industry, articulated Nigeria’s ambition to emerge as a significant exporter of manufactured goods across Africa, driven by policies that foster industrial growth and regional value chains. He remarked that the AfCFTA offers a valuable opportunity for bolstering Nigeria’s industrial base and enhancing market access for local businesses.
Enoh stressed the necessity for Africa to transition from raw material exports to value-added products, identifying industrial policy as a critical element in maximizing the potential benefits of regional trade. He specifically pointed to the strategic importance of the Lagos-Abidjan trade corridor, which has promising prospects for industries such as cocoa processing, enabling deeper regional value chains through manufacturing.
Call for Evidence-Based Proposals to Address Trade Barriers
The CBN and the Department of Industry, Trade and Investment jointly encouraged businesses to present data-driven, evidence-based proposals to policymakers aimed at tackling cross-border trade challenges and enhancing the business environment under the AfCFTA. This initiative is designed to foster collaboration and innovation in addressing trade bottlenecks.
Nigeria’s Strategic Role in Enhancing Regional Trade
During the forum, Nneka Enwerezi, Managing Director and CEO of Citibank Nigeria Limited, emphasized Nigeria’s vital role in the success of the AfCFTA and its potential to reap significant benefits from the expansion of regional trade. He stated that the agreement is designed to facilitate efficient cross-border movement of goods, capital, and payments across the continent.
Enwerezi reaffirmed Citibank’s commitment to providing financial solutions that support businesses in their efforts to expand beyond domestic markets. He noted that the AfCFTA represents substantial opportunities for Nigerian enterprises and that Citi is dedicated to delivering practical financial tools that empower clients to enhance their competitiveness in new markets.
