In a bid to reshape its economic future, Oyo State set up a sub-national implementation strategy for the African Continental Free Trade Area (AfCFTA).
 
The move, described as bold, visionary and catalytic, was jointly celebrated by AfCFTA’s Secretary-General, Wamkele Mene, and Gov. Seyi Makinde at a high-level event in Ibadan, Oyo State.
 
Speaking at the launch, Mene praised Oyo state for setting an unprecedented example of sub-national participation in the AfCFTA framework, commending Makinde’s foresight in aligning the state’s economic development agenda with the opportunities presented by the AfCFTA. He noted that sub-national entities have a critical role to play, stating that the roles are complementary to national governments in driving the agreement’s successful implementation.
 
Mene emphasised that the next phase would focus on execution, citing trade finance as one of the immediate priorities. He explained that access to finance would be crucial to transforming the strategy from a policy document into an actionable framework, especially for MSMEs, informal traders and farmers, given the strategy’s focus on agriculture and agro-processing.

 He also identified industrialisation and the development of special economic zones as key growth areas that could be integrated into AfCFTA’s productive networks, leveraging Oyo’s capacity to engage competitively within the continental market.
 
Makinde said that although Nigeria was initially slow in ratifying the AfCFTA agreement, the country eventually signed in December 2020, depositing the instrument of ratification with the African Union in Addis Ababa.
 
He pointed out that until now, no state government in Nigeria or elsewhere had created a domestic strategy for implementation. He clarified that while foreign trade policy and treaty ratification fall under federal jurisdiction, states wield considerable power in economic development, including infrastructure, agriculture, SME support, industrial regulation and even port activities.
 
He said the state is proactively preparing its institutional frameworks, improving infrastructure, creating investment incentives and ensuring overall readiness so that when national AfCFTA provisions are fully activated, it would not be left behind.
 
Outlining the benefits, he stated that in the immediate term, the strategy will improve the export readiness of small and medium-sized enterprises through training, support for certification and packaging and compliance with international standards.
 
It would also send a strong signal to investors that the state is open for business, he noted. In the medium term, efforts will concentrate on priority sectors, including agriculture, manufacturing and the creative industries.
 
He explained that while Lagos ports are often cited as a strategic advantage, Oyo’s proximity to the Republic of Benin offers leverage for legal cross-border trade.

In the long term, he said, the strategy would attract foreign direct investment and give local businesses access to AfCFTA’s 1.4 billion African market.
 
This, he noted, would drive economic diversification, reduce reliance on oil revenues and stimulate value-added production across sectors. He added that as incomes increase for farmers, artisans and manufacturers, the state’s internally generated revenue (IGR) will grow.