The Federal Executive Council has ratified Nigeria’s membership of the African Continental Free Trade Area (AfCFTA) agreement ahead of the December 5, 2020 deadline.1 The AfCFTA, which comes into effect on the 1st of January 2021, aims to create a single market for goods and services in Africa that can potentially increase consumer and business spending to over $6.7 trillion by 2030.2 Nigeria with its substantial market, large labour force and the economy is likely to be a major beneficiary of the agreement. However, the Nigerian government in some instances has taken an anti-trade policy stance such as the closure of land borders with Benin, Niger, and Cameroon in order to curb the smuggling of food products, and the new import prohibition on Maize. As such, the government will have to improve its preparedness towards implementing the AfCFTA by identifying and achieving quick wins to enhance trade across borders. Another important policy objective is increasing the awareness of the AfCFTA among local businesses in order that they leverage on the increased market access.
December 14, 2020
Nigeria Economic Update (Issue 45)
Related
Nigeria Economic Update (Issue 3)
Provisional Monetary
statistics by the CBN show an increase in currency in circulation a portion
of overall money supply. Specifically, currency in circulation rose
(Month-on-Month) by 14.2 percent to N2.2 million in December 2016
the highest Month-on-Month increase recorded for the year 2016. The rise in currency-
outside-bank may be attributed to the growing demand for cash balances for
spending activities during the festive period. This development would largely compound
the liquidity problem associated with TSA implementation and ongoing CBN
monetary tightening as deposit money banks might be cash-strapped. Going
forward, efforts should be geared towards intensifying initiatives that promote
a cashless economy that encourages cashless transactions.