Stakeholders have said that Nigeria is not harnessing the opportunities trade-in service offers under the African Continental Free Trade Agreement (AfCFTA) as it accounts for about 60 per cent of the gross domestic product (GDP) of the country.
They said this during a roundtable on the AfCFTA and trade-in-services organised by the Centre for International Private Enterprises (CIPE) in Lagos.
The consultant, Economic Community of West African States (ECOWAS), Common Investment Market, Prof. Jonathan Aremu, lamented that Nigerians are only familiar with the trade of goods, but not used to services, which contributes about 60 per cent to the country’s GDP.
“We are familiar with import duty, cross-border trade of goods and various processes in terms of exporting goods and documentation. Trade in services is becoming a dominant sector that is contributing very close to 60 per cent of GDP despite oil. That is the sector people know nothing about and where we have a huge comparative advantage when we talk of AfCFTA. It is a sector we need to encourage as a lot of people are not aware,” Aremu added.
According to him, Nigeria has committed to the World Trade Organisation (WTO) under trade and services, but has yet to increase its commitment to AfCFTA in terms of trading in services.
Speaking on digital trade in service, the Thematic Lead, e-Government Policy and Regulations of the Digital Economy Policy Commission, Christopher Abhulimen, said digital trade among African countries holds immense significance for economic growth for member states.
He said integrating digital solutions in the AfCFTA region’s cross-border trade presents substantial opportunities for enhancing efficiency, connectivity and overall trade and service facilitation.
Abhulimen who is also the Chief Executive Officer, e-Scape Technologies Limited, noted that digital technologies play a transformative role in streamlining and optimising business services and creating a conducive environment for trade within the AfCFTA region.
He said digital trade would also help in streamlining transactions and reducing bureaucratic hurdles, facilitate broader access to markets beyond national borders, position AfCFTA members at the forefront of the digital economy and foster an environment conducive to digital innovation in the service industry.
Abhulimen further advocated investment in infrastructure development projects to bridge existing gaps, improved transportation networks, digital connectivity and logistics infrastructure.
