Stakeholders demand review of tariff, logistics barriers for AfCFTA

Stakeholders have called for a review of tariff and non-tariff barriers to enable Nigeria to compete effectively with other African countries offering tax incentives to exporters.

They emphasised that such reforms are essential for Nigeria to fully benefit from the $3.4 trillion trade potential under the African Continental Free Trade Area (AfCFTA).

Also, they highlighted the urgent need for reforms in Nigeria’s maritime sector, underscoring the importance of better coordination, transparency, logistics, fiscal incentives, robust infrastructure and information management to enhance the country’s competitiveness in intra-African trade.

These views were expressed yesterday at the second edition of the Maritime Reporters Association of Nigeria (MARAN) Yearly Maritime Lecture, held in Lagos.

Maritime consultant and Chief Executive Officer of Wealthy Honey Investment Nigeria Limited, Dr. Farinto Kayode Collins criticised the multiple levies and fees imposed by regulatory agencies on export items describing them as detrimental to trade.

He said each Federal Government regulatory agency imposes its fines, levies, or fees, which collectively stifle trade.

“For example, regulated items handled by agencies like SON or NAFDAC incur multiple charges, including import permits, MANCAP fees, inspection costs, and labelling fees,” he said, adding that these practices are unsustainable,” he said.

He also lamented discriminatory freight charges imposed by shipping agents, which he claimed are higher for Nigerian businesses compared to foreign counterparts.

He warned that such practices could hurt local businesses and risk fostering resentment that might escalate into xenophobic tensions.

On logistics and infrastructure, Collins pointed out Nigeria’s over-reliance on road transport as a major obstacle to efficient intra-African trade.

He called for the adoption of a multimodal transport system to alleviate congestion and improve the movement of goods, adding that without efficient logistics the objectives of AfCFTA will remain unattainable.

The Chief Executive Officer of Le Look Bags, Mrs Chinwe Ezenwa, stressed that inadequate logistics and infrastructure could hinder Nigeria’s ability to fully capitalise on AfCFTA.

She highlighted the operational Lekki Deep Seaport and ongoing projects in Bakassi and Badagry as promising developments but urged stakeholders to position these facilities as transshipment hubs.

Ezenwa said Nigerian ports must compete with ports like Tema and Lomé in terms of infrastructure, operational efficiency, and ease of doing business for AfCFTA.

Ezenwa also emphasised the importance of advanced port infrastructure to support intermodal transportation, enabling seamless cargo transitions between ships, trucks, trains, and aeroplanes.

She called for robust port access roads, improved railway connections, and the deployment of barges and other innovations to address transportation challenges.

Earlier, the President of MARAN, Godfrey Bivbere, described the maritime sector as the backbone of international trade and a critical enabler of intra-African commerce.

However, he highlighted persistent challenges, including inadequate infrastructure, regulatory bottlenecks, and operational inefficiencies, as barriers to seamless trade.

He said to maximise the benefits of AfCFTA, Nigeria must address critical issues such as improved trade infrastructure, enhanced roads, transit trailer parks, and functional scanning facilities at ports.