Nigeria has achieved a milestone in African trade by facilitating its first shipment to Kenya under the African Continental Free Trade Area Agreement (AfCFTA). The shipment, handled by Lucky Fibres, a subsidiary of the Tolaram Group, was processed through Nigeria’s Apapa Area Command in Lagos and is destined for the port of Mombasa, Kenya. This groundbreaking move is expected to strengthen trade relationships across Africa and pave the way for an increase in economic integration on the continent.
During a visit to the Apapa Command to monitor the shipment’s documentation and verification, Olusegun Olutayo, Senior Trade Expert and Lead of Trade Enablement at the Nigeria AfCFTA Coordination Office, emphasized that this first transaction symbolizes the collaborative spirit of the AfCFTA initiative. He shared that the effort was coordinated with key stakeholders in various African nations, underscoring the collective support needed to foster intra-African trade. Olutayo explained, “It is not that we are doing it alone; I have already sent a message to the Secretariat in Ghana that there will be a shipment under AfCFTA to Kenya. I have also communicated with the AfCFTA implementation committee in Kenya. So this is the spirit we are building to ensure that we increase intra-African trade.”
The AfCFTA was established to create a single market across Africa for goods and services, with the aim of improving economic integration, diversifying exports, and reducing trade barriers. As the world’s largest free trade area, AfCFTA connects 54 countries and encompasses a market of over 1.2 billion people, with a combined GDP exceeding $3 trillion. Through AfCFTA, countries like Nigeria and Kenya can trade with significantly lower tariffs, improved access to markets, and streamlined customs processes.
The Nigeria Customs Service (NCS) has been instrumental in supporting the seamless implementation of this trade agreement, acting as the Designated Competent Authority (DCA) for AfCFTA within Nigeria. Olutayo commended the NCS for its active engagement in making this shipment a reality. “The Nigeria Customs Service has been fantastic; they are ready to facilitate trade. Once they hear that there is an issue, particularly around AfCFTA, you will see everybody ready to support and facilitate it, which is the essence of true trade facilitation,” he said. The NCS’s involvement has been crucial for navigating regulatory requirements, managing compliance, and ensuring that shipments conform to AfCFTA protocols.
In addition to regulatory facilitation, the NCS’s commitment to AfCFTA is part of a broader effort to position Nigeria as a central player in African trade. With this first shipment to Kenya, Nigeria is setting a precedent for other African countries to follow, building confidence in the agreement’s operational framework. By participating in AfCFTA, Nigeria aims to diversify its exports, reduce dependency on traditional trading partners outside of Africa, and increase its competitive edge within the continent. This shift is anticipated to foster growth in various Nigerian industries, including manufacturing, agriculture, and services, by opening up new market opportunities.
However, this historic shipment is only the beginning. The success of the AfCFTA in transforming Africa’s trade landscape will rely heavily on sustained efforts to address logistical and infrastructural challenges, which have traditionally limited trade efficiency in Africa. Moreover, improving transportation networks, reducing port delays, and increasing efficiency at customs points across African borders will be crucial to realizing the full potential of the AfCFTA. In Nigeria’s case, the Apapa Port, where this first shipment originated, has long been criticized for its congestion and delays, a challenge that authorities are working to alleviate to ensure smoother trade flow.
The AfCFTA’s promise is that it could significantly reduce poverty, boost income levels, and improve the welfare of millions of people across Africa. For Nigeria, this agreement represents a chance to improve its economic resilience by integrating more deeply with African neighbors and reducing dependency on global markets beyond the continent. The increased trade activity is expected to stimulate job creation and foster innovation across multiple sectors, contributing to sustainable economic development in Nigeria and other participating countries.
Moving forward, Nigeria and Kenya’s successful transaction under AfCFTA sets a promising precedent for future shipments between African nations, and other countries are likely to follow suit. This development could usher in a new era of economic cooperation within Africa, allowing countries to leverage their unique resources, talents, and markets to create a thriving continental economy. By continuing to address regulatory and logistical hurdles, as well as investing in infrastructure, AfCFTA has the potential to be a transformative force that could change the economic trajectory of Africa for generations to come.
This first shipment between Nigeria and Kenya under AfCFTA symbolizes the beginning of Africa’s path toward deeper economic integration and shared prosperity.
