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The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has urged the Federal Government to address longstanding structural challenges hindering Nigeria’s trade competitiveness including seaports and power supply, before committing substantial resources to the newly approved $1 billion African Continental Free Trade Area (AfCFTA) Credit Facility.
While commending the Federal Government for approving the proposed fund aimed at supporting Nigerian exporters and businesses to access opportunities across the African market, the Association warned that access to finance alone would not guarantee Nigeria’s success under the continental trade agreement.
In a statement signed by its National President, Otunba Frank Ogunojemite, APFFLON said Nigeria must first resolve critical issues affecting manufacturers, exporters, freight forwarders, logistics operators and small and medium-sized enterprises (SMEs) if it hopes to maximize the benefits of AfCFTA.
According to the Association, several obstacles that undermined previous African trade agreements remain unresolved, including poor infrastructure, high production costs, unreliable power supply, multiple taxation, foreign exchange constraints, excessive port charges, cumbersome export procedures and regulatory bottlenecks.
APFFLON expressed concern that many local manufacturers and SMEs are already struggling under the current economic environment and may be unable to take advantage of AfCFTA opportunities, regardless of the availability of credit support.
“While access to finance is important, funding alone cannot solve the fundamental challenges affecting Nigerian businesses. Before providing large-scale AfCFTA credit support, government must first create an enabling environment that allows local industries to compete effectively with their counterparts across Africa,” the statement said.
The Association called on the Federal Government to urgently prioritize the reduction of port charges, elimination of unnecessary trade bottlenecks and the full implementation of the National Single Window initiative and other trade facilitation reforms.
It also advocated improved road, rail, port and border infrastructure, simplified export documentation and cargo clearance procedures, tax incentives for local manufacturers, improved access to foreign exchange and stronger collaboration among agencies responsible for trade regulation and export promotion.
APFFLON further urged policymakers to develop strategies that encourage value-added exports and industrial expansion rather than dependence on raw commodity exports.
The Association warned that unless these challenges are adequately addressed, Nigeria risks becoming a destination market for goods produced by other African countries instead of emerging as a dominant exporting nation under the AfCFTA framework.
According to APFFLON, sustainable economic growth, industrial development, job creation and export expansion can only be achieved through comprehensive reforms that strengthen the country’s production capacity, logistics systems and overall trade competitiveness.
The Association reaffirmed its commitment to working with the Federal Government and relevant stakeholders to promote efficient trade facilitation, logistics development and policies that will position Nigeria to compete effectively within Africa and the global marketplace.
