Impact of the Intra-African Trade Mechanisms and African Continental Free Trade Area (AfCFTA) On Sustainable Development in Nigeria

Abiola Yekeen, Muktar Adamu

Abstract


The study explores how AfCFTA can reshape Nigeria's trade landscape, fostering economic growth, reducing dependency on non-African markets, and enhancing regional value chains. The implementation of the African Continental Free Trade Area (AfCFTA) and related intra-African trade mechanisms presents significant opportunities and challenges for the Nigerian market. This study examines the potential impacts of these trade agreements on Nigeria's economy, focusing on key sectors such as agriculture, manufacturing, and services. By reducing tariffs and non-tariff barriers, AfCFTA is expected to enhance Nigeria’s access to larger regional markets, thereby stimulating economic growth and diversification of exports. This research highlights the benefits of increased competitiveness for Nigerian businesses and the potential for job creation in sectors aligned with regional demand. However, it also addresses the risks associated with trade liberalization, particularly for industries vulnerable to foreign competition. The findings underscore the necessity for robust infrastructure investment and strategic policy frameworks to mitigate adverse effects, ensuring that the gains from AfCFTA are equitably distributed among various segments of the population. Conclusively, the impact of intra-African trade mechanisms and AfCFTA on the Nigerian market is multifaceted, encompassing opportunities for growth and challenges that require strategic responses. As Nigeria navigates this new trade landscape, the effective implementation of policies aimed at bolstering local industries and enhancing regional cooperation will be vital to harnessing the full potential of AfCFTA. Ultimately, this analysis contributes to a nuanced understanding of the interplay between intra-African trade initiatives and national economic development and holistically contributes to the broader discourse on African economic integration, providing insights that are crucial for policymakers, businesses, and stakeholders aiming to harness the full potential of AfCFTA in Nigeria in shaping a resilient Nigerian economy within the context of continental trade.


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