By Franklin Alli
“Nigeria is not taking advantage of the huge export market opportunities existing in the rest of Africa. Nigeria only exports few lines of products to its partners in the Africa markets. The few countries are South Africa 37%; Togo (19.6%), Cote d’Ivoire, Senegal, Cameroon, Ghana, Egypt, Benin and Niger, whose imports from Nigeria are at least above 1%.”
A study conducted by Centre for Trade & Development Initiatives, University of Ibadan, Nigeria, for Manufacturers Association of Nigeria., tagged ‘Factsheet of MAN Study on AfCFTA,’ has revealed.
The study critically analyzed the likely impact of the AfCFTA on Nigeria manufacturing sector and established that imports into Nigeria will substantially increase as a result of AfCFTA and this will certainly affect domestic production, employment and investment negatively.
The report also detailed export opportunities for Nigeria’s manufactured products (by tariff lines) under existing market access conditions in 13 African countries: South Africa, Togo, Côte d’Ivoire, Senegal, Cameroun, Ghana, Egypt, Benin, Angola, Niger, Morocco, Mozambique, and Guinea. These countries account for over 80 percent of Nigeria’s export in African markets.
“Under African Continental Free Trade Area (AfCFTA) Agreement, Nigeria is likely to face severe products competition in countries like Angola, Senegal, Morocco, Mozambique, Egypt and Guinea, especially in products like toilet or facial tissue, parts suitable for use solely or principally with spark-ignition internal combustion piston, sanitary towels, plates sheets, film, foil and surface-active preparation among others.
Commodities For Export
It is likely to face less competition in Niger, Benin and Ghana across products like electric energy, Sweet, fresh or dried potatoes, Bars or rods of iron or non-alloy steel, cold-formed or cold-finished & further worked, Casks, drums, cans, boxes & similar containers,
Petroleum oils & oils obtained from bituminous minerals, crude and Water tube boilers with a steam production exceeding 45tons per hour.
Therefore, the AfCFTA agreement is expected to provide Nigeria ample opportunity to look towards these products and countries with less competition, especially from other third party countries.