Nigeria has finally agreed to sign an Africa free trade agreement at the coming African Union summit, a statement posted on the Nigeria presidency’s Twitter feed on Tuesday confirmed, reported Africa News.
The Nigerian government will sign the Africa Continental Free Trade Agreement (AfCFTA) at the African Union summit that starts in Niger on July 7. The agreement came into force on May 30.
“Let me state unequivocally that trade is important for us as a nation and to all nations. Economic progress is what makes the world go around. Our position is very simple, we support free trade as long as it is fair and conducted on an equitable basis,” President Muhammadu Buhari’s statement posted on Twitter read.
The AfCFTA came into force in May after being ratified by the parliaments of 24 countries. It aims to bring all 54 members of the African Union (AU) together in a single market by eliminating tariffs between member states and creating a market of 1.2 billion people with a combined GDP of over $2.2 trillion.
Nigeria, the largest economy on the continent, has been one of only three African countries to hold back on signing the free trade deal, as it was worried that signing the deal could expose its manufacturers to greater competition and might even force some of them out of business and drive up unemployment. Last week, the panel set up to assess the impact of joining the bloc recommended President Buhari to “consider joining.”
The panel’s chair, Desmond Guobadia, said the free trade deal will provide immense opportunities for Nigeria’s manufacturing and service companies to expand to Africa.
After reviewing the impact assessment of the trade agreement, Buhari finally agreed to come on board. Eritrea and Benin are now the only two African countries to have chosen not to join the zone.
