Stakeholders have expressed concern that Nigeria, which makes up roughly 60% of the nation’s GDP, is not taking advantage of the trade-in service opportunities provided by the African Continental Free Trade Agreement (AfCFTA).
They made these comments at a roundtable discussion on trade-in services and the AfCFTA that was hosted in Lagos by the Centre for International Private Enterprises (CIPE).
Prof. Jonathan Aremu, a consultant for the Economic Community of West African States (ECOWAS) Common Investment Market, bemoaned the fact that Nigerians are not accustomed to trading services, which account for about 60% of the nation’s GDP, and are only familiar with the sale of products.
“We are knowledgeable with import duties, international trading in commodities, and the several procedures involved in exporting items and paperwork. Despite oil, trade in services is growing into a significant industry that accounts for about 60% of GDP. When we discuss the AfCFTA, we have a significant comparative advantage in that industry, which most people are unaware of. Since many people are unaware of it, it’s a sector we need to support,” Aremu continued.
He claims that although Nigeria has pledged to the World Trade Organisation (WTO) under the trade and services sector, it has not yet increased its commitment to the AfCFTA under the service sector.
The Digital Economy Policy Commission’s Thematic Lead for e-Government Policy and Regulations, Christopher Abhulimen, stated during his speech on digital commerce in services that digital trade between African nations is extremely important for member states’ economic development.
He added there are significant prospects to improve efficiency, connectivity, and overall trade and service facilitation by incorporating digital solutions into cross-border trade in the AfCFTA region.
In addition to serving as CEO of e-Scape Technologies Limited, Abhulimen pointed out that digital technologies are revolutionary in that they simplify and optimize company services while also fostering an atmosphere that is favorable to commerce within the AfCFTA region.
In addition, he claimed that digital trade would put AfCFTA members at the forefront of the digital economy, simplify transactions and lower bureaucratic barriers, enable greater access to markets outside of national borders, and promote an atmosphere that would encourage digital innovation in the service sector.
Abhulimen also promoted funding for projects aimed at improving transit networks, internet connection, logistics infrastructure, and other areas where shortages currently exist.
