Ample participation of Nigerian businesses in the ongoing African Continental Free Trade Area (AfCFTA) will require increased production capacity, improved logistics, innovation and increased cost of production, most of which require sufficient funds to pull-off. Business owners have usually complained of unavailable credit facilities to actualise the provisions of the trade agreement, however key players in Africa’s finance and trade space have noted some available intervention facilities that can be utilised.
Speaking during an International Trade Webinar held recently, Benedict Oramah, President, African Export-import Bank (Afreximbank) revealed that $8 Billion was disbursed to 500 regulated banks in Africa, Nigeria inclusive to support and grow intra African trade. He also mentioned that $500 Million was expended to members of the Manufacturers Association of Nigeria (MAN) to help them upgrade their production facilities and also help them compete comfortably in the trade agreement.
Oramah also announced that the Afreximbank and AFCFTA secretariat are at an advanced stage of creating $8 Billion AFCFTA adjustment fund aimed at alleviating future possible losses of participating countries. Godwin Emefiele, Governor, Central Bank of Nigeria (CBN), also said during the event that a N500 Billion non-oil export stimulation intervention has been setup, which is managed by the Nigerian Export-import bank.