Economy

President Tinubu approves ₦250 Billion fund for AfCFTA readiness

Published

4 days ago

December 7, 2024

President Bola Tinubu has demonstrated his commitment to the African Continental Free Trade Area (AfCFTA) by approving a ₦250 billion readiness fund.

This announcement was made on Friday in Abuja by the Nigerian AfCFTA Coordination Office, during an event organized by the United Nations Development Programme (UNDP) Nigeria in partnership with the Women Chamber of Commerce, Industry, Mines, and Agriculture (WCCIMA).

Olusegun Olutayo, Senior Trade Expert at the Nigeria AfCFTA Coordination Office, explained that the office is collaborating with the Central Bank of Nigeria (CBN) and the Bank of Industry (BoI) to determine how the Readiness Fund can be accessed.

Olutayo emphasized that the AfCFTA Readiness Fund is a key investment in Nigeria’s engagement with the AfCFTA.

It is designed to enhance the country’s business environment, diversify exports, align the AfCFTA agreement with Nigeria’s national economic growth plans, and drive economic diversification and industrial expansion.

“In principle, President Bola Tinubu has approved the AfCFTA Readiness Fund to the tune of ₦250 billion. The Fund is not available now but we are working on the modalities.

“Mr. President further said we should work with the CBN and Bank of Industry to work out the modalities for accessing the funds. But we are working to ensure that we put it in place and people will now begin to access it.

“Those that are to benefit are Nigerians; whether you are MSMEs, women, youths, farmers or a big manufacturer,” Olutayo said.

The AfCFTA presents unprecedented opportunities for African economies, with a projected target market of 1.7 billion people and a combined GDP of $6.7 trillion by 2030.

As the world’s largest free trade area, the AfCFTA unites the 55 countries of the African Union (AU) and eight Regional Economic Communities (RECs) to form a single continental market. Its goal is to reduce trade barriers, such as varying regulations across African nations.

Olutayo highlighted the widespread agreement that the Nigerian Customs Service should be the primary authority on AfCFTA matters, pointing out that Customs has undergone “significant transformation” under Bashir Adeniyi’s leadership. Olutayo also revealed that President Tinubu would soon gazette the country’s AfCFTA Protocol.

The event centered on boosting the capacity of 100 women-led Micro, Small, and Medium Enterprises (MSMEs) to seize the trade opportunities available through the AfCFTA.

Under the theme, “Empowering Women-led MSMEs for Continental Trade Opportunities,” the forum brought together policymakers, entrepreneurs, ecosystem partners, and potential investors to explore how Nigerian women can succeed in regional and continental trade.

Weyinmi Eribo, Director-General of WCCIMA, remarked that by addressing key challenges, the initiative empowered women-led MSMEs to navigate the complexities of cross-border trade, strengthen value chains, and improve productivity in high-demand sectors.

“This collaboration with UNDP marks a pivotal moment in unlocking the full potential of women-led MSMEs in Nigeria. We are proud to be part of an initiative that not only builds capacity but also opens new avenues for women entrepreneurs to thrive in continental trade, driving economic growth and creating lasting change,” Eribo said.

Also, Senior Economist at UNDP, Tony Muhumuza, stated that the success of the HerAfCFTA Forum highlights the ongoing efforts of UNDP to empower women-led MSMEs across Nigeria.

“At UNDP, we are making steady strides towards empowering women-led MSMEs to unlock their full potential in cross-border trade. By equipping them with the tools, knowledge, and networks they need to navigate the complexities of AfCFTA, we are laying the foundation for greater participation in regional markets. We are optimistic that this initiative will reach even more women, helping them expand their businesses and contribute to sustainable economic growth across Nigeria and beyond,” Muhumuza said.

He mentioned that, as part of the broader HerAfCFTA initiative, UNDP and WCCIMA would continue to provide women entrepreneurs with the necessary tools to thrive in international markets, thereby advancing both their businesses and Nigeria’s role in the continent’s economic integration.