Nigeria’s federal government told the media on Wednesday stating it had confirmed the African Continental Free Trade Area (AfCFTA) — a commendable action towards the long-negotiated inception of the world’s largest free trade area.
With 54 countries agreeing with signatures’ appending, committed countries get up to 90 percent tariff cuts within five years. The AU estimates a trade boost of 60 percent amongst the continent’s population by 2022.
The agreement, which bothers removing non-tariff trade barriers, was launched at a Niger summit in July, but the coronavirus pandemic delayed its implementation.
Nigeria, the Giant of Africa, was unsure of confirming the deal because of its dependence on oil, a commodity traded globally rather than within the continent.
Nigeria also has adopted the perfectionism system of trade as experienced in August 2019 by the closure of its borders and the seeming price taxation on imported commodities.
Upon deadline, Eritrea is yet to confirm its commitment to the deal, which may cause an impending delay on the kick-off of the agreement starting January 21, 2021.
The majority of the parties involved believe this agreement is a step towards the positive economic balance between states and will foster peace and unity. However, many processes will be needed to be implemented before this ship of an agreement will be able to sail.