President Muhammadu Buhari has approved the establishment of a National Action Committee (NAC) for implementation of African Continental Free Trade Area (AfCFTA) Agreement, which he signed on behalf of Nigeria at the 12th Extraordinary Session of the African Union Heads of State on July 7, 2019, in Niamey, Republic of Niger.
The National Action Committee will be comprised of representatives of Ministries and Agencies with competent and relevant jurisdiction, and selected stakeholder groups from the private sector and the civil society to coordinate the implementation of all the AfCFTA readiness interventions.
The National Action Committee (NAC) will upon inauguration, undertake a process of engagement with stakeholders to sensitize them on the opportunities and challenges of the AfCFTA, with preparedness plans for the Nigerian economy.
Upon ratification, Nigeria will domesticate the Agreement by incorporating it into existing laws or enacting new laws, as appropriate. Engagement shall shortly start with the Ninth National Assembly.
President Buhari had approved recommendations of the Committee on Impact and Readiness Assessment of the African Continental Free Trade Area (AfCFTA) Agreement. The Committee, which was inaugurated by the President in October 2018, submitted its report on 27 June 2019.
The Report of the Presidential Committee was comprehensive, analytic with the full engagement of stakeholders in the Nigerian economy. The work of the AfCFTA Presidential Committee was preceded by a nation-wide sensitization process directed byMr. President.
The report and consultative process raised the bar in engagement by government with stakeholders and set a standard for building support for strategic areas of public policy with clarity on concrete parameters for implementation action.
The AfCFTA Agreement, which creates a single market for goods and services and movement of persons to increase intra-African trade and deepen African economic integration, has Phase I and Phase II negotiations.
The Phase I negotiations culminated in the Agreement establishing the AfCFTA, the Protocol on Trade in Goods; Protocol on Trade in Services; and, the Protocol on the Rules and Procedures on the Settlement of Disputes. These were adopted by the African Union Heads of State in Kigali on 21st March 2018. The Phase II negotiations are expected to commence in January 2020 and will cover competition, investment and intellectual property rights.
The recommendations approved by President Buhari include: signature and ratification of the AfCFTA Agreement; engaging in the ongoing negotiations of the annexures of the Agreement to incorporate safeguards for the economy, such as: a longer period to achieve AfCFTA’s trade liberalization ambition; common exclusive and sensitive lists for ECOWAS; import quotas for exclusive and sensitive products; security and customs cooperation and other measures to tackle smuggling, non-tariff barriers to trade and predatory trade practices.