How Sustainable Production Can Enhance Nigeria’s Competitiveness in AfCFTA
Nigeria’s participation in the African Continental Free Trade Area (AfCFTA) has the potential to boost its economy, but experts warn that without sustainable production, the country risks becoming a dumping ground for goods from other African nations.
This concern was raised by Segun Musa, Vice President, Air and Logistics, of the National Association of Government Approved Freight Forwarders (NAGAFF).
In a recent interview, Musa emphasized that while AfCFTA offers a significant opportunity to drive economic growth, Nigeria’s current infrastructure, production capacity, and trade-readiness are inadequate. “We have opened AfCFTA for trade liberalization, but unfortunately, Nigeria has little to showcase. Without sustainable production, we are likely to become a dumping ground because we lack competitive goods to exchange,” Musa said.
Challenges Limiting Nigeria’s Competitiveness
Musa identified critical gaps that undermine Nigeria’s ability to leverage AfCFTA, including unreliable energy supply, inadequate technology, poor infrastructure, and security challenges. These deficiencies, he argued, limit the country’s capacity to produce and export competitive goods.
He further criticized the lack of practical measures to ensure Nigeria’s readiness for AfCFTA. “The implementation of AfCFTA in Nigeria has been largely theoretical. Government activities remain focused on talk shows and presentations, without actionable strategies to deliver results,” Musa lamented.
The Role of Sustainable Production
To enhance Nigeria’s competitiveness in the continental market, Musa underscored the need for sustainable production practices. He called on the government to provide financial support to entrepreneurs, foster local production, and ensure products meet certification standards for both domestic and international markets.
“Identifying and supporting local producers is crucial,” Musa said. “Regulatory bodies like the Standards Organisation of Nigeria (SON) must actively promote standardization and strengthen manufacturing capacity.”
The Path Forward
Musa urged the government to prioritize structural reforms, capacity building, and local content development to position Nigeria as a key player in AfCFTA. He also criticized the committees overseeing AfCFTA implementation for failing to engage stakeholders effectively and called for a shift toward practical, results-driven dialogue.
“AfCFTA is a continuous market, and it is not too late for Nigeria to harness its benefits,” he stated. “However, this depends on the government’s commitment to creating tangible value for trade.”
Unlocking AfCFTA’s Potential
The AfCFTA agreement, which came into effect in 2021, aims to create a unified market for goods and services across Africa, driving intra-continental trade and economic integration. For Nigeria, achieving competitiveness in this framework will require sustainable production as the foundation of its trade strategy.
By addressing infrastructural deficits and implementing actionable reforms, Nigeria can strengthen its production capacity and secure a competitive edge in the AfCFTA market. Sustainable production is not just a necessity but the key to unlocking Nigeria’s full potential in the largest free trade area in the world.
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