The Initiative for African Trade and Prosperity has said that the African Continental Free Trade Agreement can help Nigeria reduce the unemployment rate and significantly boost the economy within the next decade.
The IATP made this known in a recently released report titled “Africa’s Free Trading Future,” which examines the importance of the African Continental Free Trade Area (AfCFTA) and its benefits to Nigerians and Africans at large.
According to the IATP report, the AfCFTA has the potential of increasing intra-African trade by 52 percent by 2035, which would benefit Nigeria because of its market size.
With Nigeria’s unemployment rate at about 40 percent, the report added that the AfCFTA could help reduce youth unemployment rate significantly through industrial growth and expanded trade.
While speaking on the purpose of the report, one of the authors, Alex Jelloain, stated that if the AfCFTA is strategically implemented, it could create a sustainable change in Africa’s economy by ensuring increased wages, a strong manufacturing base, and agricultural efficiency, amongst others.
In his remarks, the Executive Director of the Ominira Initiative, Lanre-Peter Elufisan, further explained that this is an opportunity for the Nigerian government to move beyond crude oil exports and expand into manufacturing and agriculture.
He added that AfCFTA could lift 50 million Africans out of poverty, with Nigeria expected to experience one of the highest reductions.
The report also highlighted other policy recommendations ranging from infrastructural investments in roads, energy, and communication; harmonisation of national policies with the AfCFTA objectives; and providing financial and technical support to small and medium enterprises to boost economic development.
