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What to Know About the African Continental Free Trade Area

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African Continental Free Trade

About AfCFTA BY HASSANAH AHMED

The African Continental Free Trade Area (AfCFTA) is a free trade area, outlined in the African Continental Free Trade Agreement among 54 of the 55 African Union nations (except Eritrea). AfCFTA is the largest in the world in terms of participating countries since the formation of the World Trade Organization.
It would create the world’s largest single market of about 1.2billion consumers and workers, thereby increasing opportunities for African manufacturers and businesses, especially those constrained by the size of their domestic markets.
It aims to reduce and eventually eliminate customs duties and non-tariff barriers on goods and allow free provision of services.
AfCFTA And Trade Benefits To Nigeria:
• Increased Job Opportunities
Nigeria which have an abundant supply of professionals in various services industries such as construction, engineering, technology, and financial services would see increased movement of such professionals to countries with a demand for their services.
• Size of the Nigerian Market:
Nigeria has the largest economy and population in Africa with more than $500 billion in GDP and a population of 200 million. This market size allows manufacturers to increase capacity and expand into other African countries. This enables investors benefit not only from the Nigerian market but from other countries on the continent as well.
• Dispute Settlement Mechanism:
It will provide a Dispute Settlement Mechanism for stopping the hostile and treatment directed against Nigerian business persons in other African countries.
Implementing AfCFTA would:
• Lift 30 million Africans out of extreme poverty and boost the incomes of nearly 68 million others who live on less than $5.50 a day.
• Boost Africa’s income by $450 billion by 2035 (a gain of 7 percent) while adding $76 billion to the income of the rest of the world. It would also Increase Africa’s exports by $560 billion, mostly in manufacturing.
• Spur larger wage gains for women (10.5 percent) than for men (9.9 percent). Boost wages for both skilled and unskilled workers.
• The African Continental Free Trade Area is expected to commence in January 2021.
• Visit their website for more details: https://www.africancfta.org/

Read Also: China and Africa’s Solidarity Against COVID-19(Opens in a new browser tab)

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Customs Corner

Federal Government Launches National Single Window Steering Committee to Enhance Trade Efficiency

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Author: Folusho Adeogun.

In a bid to enhance trade facilitation and efficiency within the nation’s import and export value chain, the Federal Government has inaugurated the National Single Window Steering Committee, with the Nigeria Customs Service (NCS) serving as a key member.

The launch took place at the Presidential Villa Abuja on Tuesday, with President Bola Tinubu presiding over the inauguration.

The Committee is composed of representatives from key federal ministries and agencies, including the Ministry of Finance, the Marine and Blue Economy, Transportation, Trade and Investment, as well as the Federal Inland Revenue Service. Other agencies involved are the Nigeria Sovereign Investment Authority (NSIA), the Central Bank of Nigeria, the National Agency for Food and Drug Administration and Control (NAFDAC), the Standards Organization of Nigeria, and the Nigerian Maritime Administration and Safety Agency (NIMASA).

The Nigerian Customs Service is playing a crucial role in the effort, given its direct involvement in trade facilitation and border security.

The newly established committee will oversee the implementation of the National Single Window project, a real-time digital trade compliance system aimed at modernising and streamlining trade processes.

The project is expected to facilitate paperless trade and provide an annual economic benefit of around $2.7 billion, contributing to national revenue and improving port efficiency.

President Tinubu emphasised the importance of the initiative. He said, “Nigeria cannot afford to lose an estimated $4 billion annually due to bureaucratic delays, red tape, and corruption at the nation’s ports. By embracing the single window system, Nigeria hopes to join countries like Singapore, Korea, Kenya, and Saudi Arabia that have already experienced significant improvements in trade efficiency,” he stated.

The Nigeria Customs Service supports the initiative as it aligns with the service’s goal of enhancing trade facilitation and national security.

NCS’s involvement will ensure the successful implementation of the project, helping to expedite cargo movement and optimise inter-African trade.

The initiative is seen as a bold statement of the government’s commitment to progress, prosperity, and the well-being of all Nigerians. It represents a significant step towards regional integration and collaboration, ultimately contributing to a better future for the country.

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Customs Corner

PTML Customs Command Generates N66.9b, Targets Two-Hour Clearance Time for Vehicles

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Author: Gift Wada.

The Port Terminal Multiservices Limited (PTML) Command of the Nigeria Customs Service has collected N66,920,181,586.30 as total revenue for the first quarter of 2024, which is N22,198,965,809.55 higher than N44,721,215,776.75 collected between January and March 2023, representing 49.6 percent increase.

The Customs Area Controller (CAC) of the command, Comptroller Saidu Yusuf, in a press statement signed by the Command’s Spokesperson, Chief Superintendent of Customs Muhammad Yakubu, on 13 April 2024, described the increase in revenue collection as a laudable feat.

Comptroller Yusuf, while commending the Comptroller General of Customs, Bashir Adewale Adeniyi, MFR, for initiating strategies to achieve faster cargo clearance, assured that PTML Command under his watch aims to surpass its record of three-hour cargo clearance for compliant traders.

“The launching of time release study (TRS), which is ongoing, and other deliberate efforts by the Comptroller General have contributed to expanding terminal space and promoting ease of doing business in PTML.

“The PTML command has the potential to achieve two-hour cargo clearance and surpass its existing three hours records if port users compliance level is improved,” he said.

Comptroller Yusuf, who described PTML as one of the safest and most secure environments for Roll On Roll Off (RoRo) and general cargoes, also advised importers and their agents to take advantage of the incentives available for compliant traders such as fast track, advance ruling and possible migration to the Authorised Economic Operator (AEO) status.

He reminded port users in PTML of the robust and time-conscious dispute resolution mechanism, which has contributed immensely to the revenue collection, trade facilitation, and anti-smuggling functions of the command.

While commending the various government and private sector stakeholders for their cooperation and support towards the realisation of the government’s goal for revenue collection and prevention of unlawful activities, Comptroller
Yusuf expressed optimism that the command will surpass its annual target for the year.

He described the importation of vehicles meant for Nigerian roads into neighbouring countries with the intent to smuggle them through unapproved roads into Nigeria as unpatriotic and an act of economic sabotage as the command has the capacity for seamless and efficient processing of such automobile cargoes.

For the second quarter and first half of the year, the CAC enjoined command officers to maximally deploy available technology and rededicate themselves to the job to achieve more.

He reminded port users that there is increased anti-smuggling vigilance to uncover concealment such as under declaration and smuggling of prohibited items. The CAC added that any discovered infraction will fully evoke the Nigeria Customs Service Act (NCSA) 2023, where there are spelt-out penalties.

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Customs Corner

Comptroller Jaiyeoba Commends Apapa Scanning Officers for Non-Compromise

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Author: Ibe Wada.

The Customs Area Controller (CAC) of Apapa Area Command, Comptroller Babajide Jaiyeoba, has commended Officers of the Non-Intrusive Inspection Technology Unit (NIITU) for their invaluable contributions to the overall success of the Command.

Comptroller Jaiyeoba, who paid an unscheduled visit to the scanner site, reminded the officers of the importance of teamwork in sustaining the gains of compliance and revenue collection recently recorded by the command.

In a press statement issued on Tuesday, 9 April 2024, by the Public Relations Officer, Chief Superintendent of Customs, Abubakar Usman, the CAC thanked Deputy Comptroller of Customs Salamatu Atuluku, the Scanner Manager of the scanning site and encouraged the unit not to be deterred by complaints coming from persons who were made to pay accurate duties to the government after issuance of demand notices.

According to him, no business person made to part with money will be happy with Officers who refuse to compromise the ethics of their jobs.

Addressing the officers, he said, “The main reason for me coming here is to appreciate you. I may not see you, but I have seen your work, and I won’t keep quiet about what I have seen. You are doing very well.”

He urged the Officers to remain steadfast in their commitment to integrity, emphasising that uncompromising adherence to their duties would ensure their credibility before the public and their superiors.

“For those of you doing intervention in the form of Demand Notice(DN), there is nobody who part with money that will be happy with you. They will want to play intelligent by hiding somewhere. When you fetch them from their hiding place, they become your enemy. Whatever they write about anybody here will still come down to me, and if anybody works well, the onus on me is to defend such a person”. He added.

The CAC acknowledged the challenges faced by Officers issuing demand notices, highlighting the inevitability of dissatisfaction from individuals required to pay accurate duties to the government.

He reminded the unit not to be swayed by such complaints but to focus on upholding the integrity of their work.

Comptroller Jaiyeoba encouraged the officers to remain resilient, noting that their commitment to excellence would lead to further responsibilities and recognition.

“Just have it at the back of your mind that you owe yourself the duty of doing your work diligently whether anyone comes around as a friend or enemy. It is not enough for you to rest. The reward for hard work is more work.” He concluded.

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