Percy Onyeka
Vice President Kashim Shettima has expressed optimism that the African Continental Free Trade Area (AfCFTA) would help galvanise Gross Domestic Product (GDP) growth on the continent.
The spokesperson of the Vice President, Mr Stanley Nkwocha, said in a statement on Thursday that Shettima spoke during a breakfast with African Heads of State to launch the Action Plan for AfCFTA.
The breakfast was held on the sidelines of the ongoing World Economic Forum (WEF), held in Davos, Switzerland.
Shettima said that based on the World Bank projections, AfCFTA would increase Africa’s GDP by 450 billion dollars in 2035 and exports by more than 81 per cent.
He said the need to increase intra-African trade, currently at 15 per cent and its potential to raise the continent’s GDP are some of the compelling reasons why the AfCFTA agreement must not be allowed to fail.
“African trade is to be boosted by 52.3% by 2025. We should increase these targets and look at trillions of dollars.
“African countries need to move quickly to iron out whatever agreements and impediments remain to ensure free and smooth trade.
“Information sharing with private sector players must be optimised and prioritized. Trade is a private sector imperative, which governments only facilitate.”
Shettima observed that negotiations have turned out to be too slow, with clashes between national and continental priorities.
This, according to him, has led to too few consummated deals among countries since January 2021 to date.
“Looking ahead, there is a need for speed and cohesion among African countries. The idea of AfCFTA must not fail, and there is no room for mediocrity in today’s world.”
Citing examples of trade unions in Europe, the Americas, and Asia, Shettima said African trade could not continue to be externalised.
“Even though we have increased intra-Africa trade from a mere seven per cent a decade ago to about 15 per cent today.
“While intra-European trade is around 70 per cent, there is a need for African leaders to do a lot better by organically empowering countries on the continent to solve their problems.”
He urged Africa’s private sector players to be proactive in stepping up to the plate to occupy their pride of place in trade on the continent.
Similarly, Shettima, at a forum to welcome investors to a parley with Nigerian officials, told foreign investors that Nigeria was on the right path to becoming their delight.
He said President Bola Tinubu’s administration was on a drive to bring in the entire ecosystem of investors.
“From private equity players to venture capitalists, impact investors, and competent contractors from all over the world to partner with us in this quest.
“Nigeria occupies an enviable position as the continent’s largest economy and with the largest population.
“Nigeria is currently repositioning her economy away from crude oil dominance, with deeper footprints in technology, arts, culture, creativity, and industrialization.
“Recent developments in our energy sector portend that Nigeria is leading the region in energy security and energy transition.”
He said that international and domestic energy companies were already engaging the global community and subscribing to the innovations of the future.
Shettima maintained that Nigeria remained open to engaging with willing nations on mutually beneficial and sustainable terms.
“This underscores why the country is a reference point for best global practices.
“We have our export, Dr Mrs Ngozi Okonjo-Iweala, heading up the World Trade Organisation, meaning that Nigeria must show itself to be a shining example of the best global trade practices.
“Recently, Nigeria removed the infamous 43 trade items from foreign exchange ban, opening up the space entirely, in what is a very bold move, signifying full trade liberalisation.”
On efforts by the Tinubu administration to ensure a conducive environment for investment, Shettima said Nigeria also totally liberalised the downstream petroleum sector.
He added that Tinubu removed the burdensome subsidies and instituted a market-driven foreign exchange market, which outlawed multiple exchange rates in the economy.
Shettima said the country intends to participate fully in the Global Value Chains (GVC) at many levels, aiming for good value capture as it becomes even more relevant to global supply chains.
He listed priorities for the country to include “repositioning our energy sector, investing in major infrastructure like our rail system, roads, new seaports, and digital technology for our vibrant youthful population to engage the world.
“Nigeria also targets a 1 trillion dollar economy within eight years, and this requires that we grow our economy by leaps and bounds.
“A new era of accountability and productivity is being instituted under the guidance of President Tinubu.
“Nigeria is an investor’s delight. There is so much to do. There are so many sectors to engage in.
“We intend to make the country into a huge construction site in a matter of months. We have rejigged our revenue administration and will soon match up with some of the most efficient countries in the world.”
Shettima also spoke about the emergence of new sectors such as the blue economy, digital economy, steel sector, gas sector, and alternative energy, among others.
He said under President Tinubu, a lot was being done to reposition Nigeria’s image, tackle the remaining pockets of insecurity, and project Nigeria to the world.
“Nigeria’s diversity is her strength. We have over 300 different languages. Each culture has something to learn from others. And something to teach.”
Agency Report
