Why Nigeria Backed Down From Signing Pan-African Continental Free Trade Area

Channels Television  
Updated March 19, 2018

Muhammadu Buhari, Owed Debt, States

 

Nigeria’s Chief Trade Negotiator, Ambassador Chiedu Osakwe says the country’s decision to back down from this week’s signing of the new pan-African continental free trade area in Rwanda, was “in the national interest of a great and diverse country”.

In an email sent in response to Channels Television’s enquiry on Monday, Osakwe said the government wants to “deepen, intensify and extend the scope of consultations on a number of areas.”

The areas listed include sectoral and systemic issues, as well as the ”aggregated and granular effects” of the new free trade deal for Nigeria’s “fiscal, structural and monetary policies”.

He, however, added that Nigeria will not be absent in Kigali as the foreign affairs minister, Geoffrey Onyeama will be representing the country and supported by a Nigerian team.

The Federal Executive Council had on Wednesday last week, approved for the President to sign the framework agreement for establishing the African Continental Free Trade Area.

But a statement signed on Sunday by the spokesperson of the Ministry of Foreign Affairs, Tope Adeleye, noted that the trip had been cancelled.

According to Adeleye, certain key stakeholders in the country indicated that they had not been consulted, and therefore had some concerns on the provisions of the treaty.

Consequently, the development was to allow more time for broader consultations and input from the stakeholders.
All leaders of Africa’s 55 countries are expected at the event in Kigali.

The AfCFTA will make the continent the largest free trade area created since the formation of the World Trade Organisation.

The launch will take place at an Extraordinary Meeting of the Heads of State of the African Union convened by President Paul Kagame of Rwanda, the new Chairperson of the AU who said of the AfCFTA: “This is a historic pact which has been nearly 40 years in the making, and it represents a major advance for African integration and unity.”

The Chairperson of the African Union Commission, H.E. Moussa Faki, says the African Continental Free Trade Area will also strengthen Africa’s position in global trade.

“AfCFTA will make Africa one of the largest economies in the world and enhance its capacity to interact on equal terms with other international economic blocs.”

On the 20th of March, a day before the signing, government delegations will join Africa’s top business leaders and other stakeholders to exchange views on the continent’s economic transformation through trade at a special day of celebration and dialogue called the AfCFTA Business Summit.