Afreximbank President: 69% of Nigerian businesses believe Buhari should sign AfCFTA

Benedict Oramah, the president African Export-Import Bank, says 69 percent of Nigerian businesses believe the African Continental Free Trade Agreement (AfCFTA) is beneficial for the country, and by implication, should be signed by President Muhammadu Buhari.

He said the failure of Nigeria to sign the trade deal may cost her huge foreign direct investment funds.

Oramah stated this on Tuesday in Lagos at the 2019 Bullion Lecture organized by Centre for Financial Journalism, regarded as the foremost media training and research centre in Nigeria.

“Nigeria stands a great chance of enlarging FDI inflows through the AfCFTA. As the largest economy and the most populous in Africa, it presents an attractive domestic market base for foreign investors interested in manufacturing for exports to the rest of Africa,” he said.

“Today, FDI inflows to Nigeria amount to about US$3billion, 90 percent of which goes to the oil sector. This can change positively with the AfCFTA.

Oramah said while it is understandable that Nigeria has not yet made a decision to sign the AfCFTA, it is instructive to note that “69% of Nigerian businesses believe AfCFTA would be advantageous to the country”.

“The top three advantages identified are better business environment, promotion of local business and business growth and expansion.

“Overall, 78% of firms believe that AfCFTA will make a positive impact on local businesses”.

Even though he said 56 percent of the polled respondents believe the country does not have the infrastructure necessary to reap those benefits and gains, “there is an understanding among business leaders that the country should not wait until the infrastructure gap is fully closed before participating in the AfCFTA.”

This is predicated on the expected impact of AfCFTA on businesses in Africa.

According to the survey, “65% of businesses expect AfCFTA to help them overcome their top challenges which include improvement in the ease of doing business across borders that they expect to accompany the trade agreement; improvement in infrastructure; and enlargement of markets for Nigerian producers”.

“Among exporting companies, 84% expect AfCFTA to increase their volume of exports; the enthusiasm is shared by 91% of small companies and 100% of agriculture and trade businesses,” he added.

The event which attracted eminent Nigerians from all walks of life had as its theme: “Leveraging the Africa Continental Free Trade Agreement to Boost Nigeria’s Economic Development”.