The Minister of Industry, Trade and Investment, Otunba Adebayo, has said that Nigeria can only get the full benefits of the Africa Continental Free Trade Area (AfCFTA) if it was adequately prepared.
He said this on Tuesday in Abuja following the submission of the report on the Nigerian economy and African Continental market from Nigeria’s Employers Consultative Association (NECA).
Adebayo called for awareness campaigns to sensitise Micro Small and Medium Enterprises (MSMEs) on how best to take advantage of the AfCFTA.
He said, “Survey results disclosed that the majority of MSMEs are unaware of the existence of the trade agreement, especially smaller businesses. This is an important finding for the nation, as this lack of knowledge will prevent their successful utilization of the agreement.
“The key takeaway is that more needs to be done to adequately disseminate information to our MSMEs to ensure that they are effectively prepared in the post-integration era.
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“However, as a country, we can only fully benefit from this opportunity if we are adequately prepared for the impending changes that will affect our business environment.
“It is necessary that we understand the full-scale impact that AfCFTA will have on all people and businesses, especially in terms of job creation and economic activities.
“We need to effectively utilise the opportunities that will be created by this trade agreement to develop our local production capacity and achieve our industrial aspirations.
“MSMEs form the backbone of the private sector and contribute more than 90% of our GDP. With more than 40 million MSMEs in existence, employing close to 75% of the Nigerian workforce, the impact of AfCFTA on the Nigerian economy will be significant.”
He explained that the aim was for a field of opportunities for growth for MSMEs.
He said, “Our vision is to eliminate these barriers to growth and improve their chances at succeeding in a post-AfCFTA economy.
“Accordingly, we have established the MSME policy to drive the growth and competitiveness of Nigerian MSMEs.
“We also concluded a landmark USD 1 billion syndicated term loan through the Bank of Industry (BOI) to provide affordable loans to MSMEs.
“Also, we have developed the MSME Portal to provide MSMEs with wider access to the market and the opportunity to be matched with customers.
“The outcomes documented in this report will play a key role in determining the strategies that Nigerian businesses will need to take in order to thrive post-AfCFTA. The Federal Government will continue to do our part in supporting MSMEs on this journey.”
