The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has urged the Federal Government to address the critical challenges confronting local manufacturers, exporters, freight forwarders, logistics operators and small-scale businesses before committing $1 billion to the African Continental Free Trade Area (AfCFTA) Credit Facility.

In a statement issued by the National President of APFFLON, Frank Ogunojemite, the association noted that while AfCFTA presents enormous opportunities for economic growth and regional integration, Nigeria’s ability to maximise the benefits depends largely on the competitiveness of its domestic industries and the efficiency of its trade facilitation systems.

According to APFFLON, several factors that hindered the success of previous African trade initiatives and treaties remain unresolved.

The bottlenecks, the association said, include poor infrastructure, high production costs, inadequate power supply, multiple taxation, foreign exchange (FX) constraints, excessive port charges, cumbersome export procedures and regulatory bottlenecks that continue to frustrate businesses engaged in international trade.

The association expressed concerns that many local manufacturers and small and medium enterprises (SMEs) are already struggling to survive under the current business environment and may not be able to take full advantage of AfCFTA opportunities despite the availability of credit facilities.

“While access to finance is important, funding alone cannot solve the fundamental challenges affecting Nigerian businesses. Before providing large-scale AfCFTA credit support, the government must first create an enabling environment that allows local industries to compete effectively with their counterparts across Africa,” the statement noted.

APFFLON, however, called on the Federal Government to prioritise the reduction of port charges and the elimination of unnecessary trade bottlenecks and ensure full implementation of the National Single Window (NSW) and other trade facilitation reforms.

The association also called for improvement of road, rail, port and border infrastructure, simplification of export documentation and cargo clearance processes and support for local manufacturers through tax incentives and reduced production costs.

Other recommendations include improved access to foreign exchange for exporters and manufacturers, strengthening collaboration among government agencies responsible for trade regulation and export promotion, as well as the development of policies that encourage value-added exports and industrial growth.

The association emphasised that unless the challenges are adequately addressed, Nigeria risks becoming a consumption market for goods produced by other African countries rather than emerging as a leading exporter under the AfCFTA framework.

APFFLON maintained that sustainable economic growth, industrial development, job creation and export expansion can only be achieved through comprehensive reforms that strengthen Nigeria’s production and logistics capacity.