Africa Free Trade Agreement: Is It Really Profitable For Naija?
There has been arguments and counter-arguments on the Africa free trade agreements – whether Nigeria should sign or not.
Nigeria and South Africa had hesitated to sign the agreement but President Buhari has now agreed to sign.
But a professor of Economics at the University of Ibadan and the Chairman, Centre for Trade and Development Initiatives, Bodija, Ibadan, Ademola Oyejide, decided to conduct a study to determine if signing the agreement would favour Nigeria.
Professor Oyejide did an analytical comparison between Nigeria and South Africa – and concluded that Nigeria would be a bigger loser in the free trade agreement than South Africa.
Oyejide disclosed the result of his study during the Annual General Meeting of the Manufacturers Association of Nigeria, Lagos Branch on Thursday.
While presenting a paper as the guest speaker at the event tagged, “African Continental Free Trade Area Agreement: Impact on the Nigerian Manufacturing Sector, Oyejide drew a comparison between the results of the AfCFTA-induced changes in the real income, tariff, revenues and terms of trade in South Africa and Nigeria.
The professor said that while the changes in real income of South Africa would be 0.7%, Nigeria would be -0.4%.
For tariff on revenues, South Africa would have 5.9% while Nigeria would have -16.7%; in terms of trade, South Africa would record 1.2% while Nigeria would see a change of -0.2%, the professor noted.
He also analysed the result of AfCFTA-induced changes in real wages which will affect Nigeria negatively.
Liked this story? Don't forget to share it with your friends