The African Continental Free Trade Area (AfCFTA) deal, according to President Muhammadu Buhari, will expand intra-African trade and create a market that is connected across the continent and has 1.3 billion customers.
At the 2022 Lagos International Trade Fair's opening ceremony on Friday in Tafawa Balewa Square, Lagos, which was hosted by the Lagos Chamber of Commerce and Industry LCCI, Buhari made the declaration.
He emphasised that the legislation was a tremendous opportunity for Nigeria, noting that the nation's international trade is already flourishing, with a trade surplus of more than N3.2 trillion between January and June of 2022. He pointed out that AfCFTA provides the chance to significantly improve!
To do better, President Buhari who was represented by the Minister of Trade and Investment, Otunba Niyi Adebayo, directed that the public and private sectors must work together.
“The private sector can help boost the demand for Nigerian products by aggressively pursuing value addition and increasing the quality of exported goods originating from our country. This trade fair is a great opportunity to showcase Nigeria’s capacity to produce to international standards and also to export.
“The public sector will continue to drive investment into infrastructure development, encourage access to low-cost financing and provide fiscal incentives to companies wishing to manufacture products for sale. These incentives include three to five-year tax holidays for enterprises in what we deem pioneer industries; tax-free operations and capital allowances for agriculture, manufacturing and engineering within our free trade zones” Buhari said.
Adebayo disclosed that the Federal Government has taken much-needed steps to improve the trading environment, some of which include: “Creation of Special Economic Zones: We have 17 operational Special Economic Zones (SEZs) with 4 more currently under construction. 14 of these are general economic zones which support export processing, large-scale manufacturing, warehousing, logistic services, tourism, food processing and packaging and technology development; the remaining 3 are dedicated” to oil & gas-related activities.
FG he related, has also provided funding support through the Central Bank of Nigeria (CBN) and the Bank of Industry (BOI). Specifically, the CBN has initiated programs to encourage domestic production and exports, some of which include the Anchor Borrowers’ Programme, the FGN Special Intervention Fund for MSMEs and the N150bn Targeted Credit Facility. The Federal Government has also successfully disbursed a total of N785 billion through BOI from 2019 to 2022.
“We have also granted Fiscal Incentives to businesses, across multiple sectors, through the Federal Ministry of Finance, Budget and National Planning. As you may be aware, our Pay-As-You-Earn (PAYE) and Company Income Tax (CIT) taxes are among the lowest in the world. In fact, small businesses with an annual turnover of less than 25 million naira, are exempted from paying Company Income Tax. A lower company income tax rate of 20% is also provided for companies whose yearly turnover is between 25 million to 100 million Naira.
“The Federal Ministry of Industry Trade and Investment is reviewing and updating our National Trade Policy in order to firmly establish Nigeria as a worldwide trading hub and a regional leader. This policy will aim to maximize our economic output, expand infrastructural development, and promote business growth, industrialization and entrepreneurship.
“While we take these strides, it is important that all national policymakers, business leaders and trade development partners know that the synergy and cooperation between all parties are cardinal to enhancing trade in Nigeria. Through effective partnerships, governance and help from our friends in the private sector, the sky is the limit.
“We can grasp the future direction of our country and pivot it to unending treasures that will benefit all. We can create a hub that is open to all and position the country as a gateway into Sub-Saharan Africa and beyond; A silk road whose impact shall solidify our position as the giant of Africa” the Minister said.
Buhari said he looked forward to the proactive conversations on how the country can open up the floodgates of opportunities in relation to her outlook.
In his vote of thanks, Chairman, Trade Promotion Board, Lagos Chamber of Commerce and Industry, Engr. Leye Kupoluyi indicated in its quest to sustain this legacy project, organizers of the fair have found loyal patrons, sponsors, partners, and exhibitors to depend on over the years.
“Every year our list of sponsors is stretched to include the biggest brands in Nigeria today. We deeply cherish this friendship, cooperation, and understanding.
“We particularly thank the United Bank for Africa Plc, AFREXIM Bank, Dangote Group, Choice International Group, MTN Nigeria, De United Foods Limited (DUFIL), Bank of Industry, Mikano International Limited, FEDAN Investments Limited, Lifemate Furniture, the Bank of Industry, Federal Inland Revenue Service (FIRS), Rite Foods, 11 Plc, NEXIM Bank, our media partners, and very honourably the Lagos State Government,” Kupoluyi said.
He also thanked President Buhari, the Governor of Lagos State, Babajide Olusola Sanwo-Olu, Otunba Adebayo, royal fathers of the day, the National President of NACCIMA and mass media.