African Continental Free Trade Area and the Nigerian Economy

An Analysis in Challenges and Opportunities

Abstract

African Continental Free Trade Area was lauded by the United Nations Economic Commission for Africa that the agreement will boost intra-African trade by 52 percent by 2022. This notwithstanding, Nigeria dragged foot with signing the Agreement expressing worries over the fate of the local manufacturers and entrepreneurs, but later signed it anyway. Based on the foregoing, this study investigated the implications of the African Continental Free Trade Area (AfCFTA) on Nigeria’s economy. The study was qualitative in nature as data was gotten from secondary sources of textbooks, the Internet, library, magazine, newspaper, while the theory of functionalism which is important component part of the broad theory of integration was adopted as the framework of analysis. The study revealed that the Nigeria’s low industrial base and the practice of mono-economic system represents a serious challenge to its Nigeria’s capacity to benefit adequately from the AfCFTA. The study recommends among other things that: there is need for Nigeria to incorporate the collaboration and initiatives of both the private and public sectors to invest in cross-border infrastructure of the country which will help in closing up Nigeria’s physical infrastructure gap which already requires a huge capital investment as well as the revenue losses in smuggling, dumping and illicit trade flows.