The Oyo State governor, ‘Seyi Makinde, has said that the state is ready to embrace the future that the African Continental Free Trade Area (AfCFTA) promises.
The governor noted that the state with its strategic location in Nigeria, its agricultural powerhouse and its emerging industrial sectors, has the potential to become a critical player in intra-African trade.
Governor Makinde stated this at the 2024 Prosperity Africa Conference themed “Driving Trade, Innovation, and Sustainability for Prosperity,” held in Addis Ababa, Ethiopia, between 25 and 26 September, 2024.
The governor, who was represented by his Chief of Staff, Hon. Segun Ogunwuyi, stated that Oyo State is aware that as a sub-national in Nigeria, it can leverage AfCFTA to drive growth, foster innovation, and create prosperity.
He added that the state has been working to position itself for African trade, saying that his government is aware that capitalising on AfCFTA requires active engagement, strategic planning, and collaboration with both national and regional partners.
He said: “I do not see AfCFTA as a trade agreement; I see it as a transformative agenda aimed at reshaping Africa’s economic landscape. For sub-national governments like Oyo State, this is a great opportunity.
“AfCFTA promises to remove barriers, expand trade, and ultimately foster industrial growth, competitiveness, and prosperity. But the question is: how can we, as sub-national governments, strategically position ourselves to take full advantage of this agreement?
“Oyo State, with its strategic location in Nigeria’s southwest, an agricultural powerhouse, and its emerging industrial sectors, has the potential to be a critical player in intra-African trade. We are already working to position ourselves for African trade.”
According to the governor, Nigeria and its sub-nationals, such as Oyo State, face significant barriers that limit their full participation, including bureaucratic customs procedures, infrastructure deficits in transport and logistics networks and non-tariff barriers.
He noted, however, that the state has been addressing these challenges by working on reducing bottlenecks and collaborating with federal authorities to streamline the customs procedures, reducing infrastructure deficit and interconnecting all zones of the state and pushing for stronger alignment between federal and regional regulatory frameworks so as to address the non-tariff barriers.
He added: “By having a one-stop shop within the Oyo State Investment and Public Private Partnership Agency (OYSIPA) to deal with approvals necessary for smooth movement of goods in and out of Oyo State, we have ensured smoother trade routes that align with the AfCFTA standards.
“Another critical barrier is our infrastructure deficits in transport and logistics networks. Without reliable transport routes, goods cannot move efficiently across borders, limiting our ability to participate in trade.
“However, we are committed to upgrading road networks, developing rail links, and investing in energy infrastructure to support the free flow of goods across West Africa.”
The governor declared that AfCFTA offers opportunities, which the state is willing to tap into, noting the state is setting up a dedicated desk for AfCFTA-related opportunities so that small and medium scale enterprises, which are the backbone of the state’s economy, can access the African markets.
He equally noted that the state has invested heavily on agribusiness development, having realised that it can turn its raw agricultural products into high-value exports that meets AfCFTA’s needs, which will increase the state’s revenue, create jobs and drive sustainable economic development.
“Presently, we have rehabilitated the once moribund Fasola Livestock Settlement, which we have renamed the Fasola Agribusiness Industrial Hub, where we have processing facilities for cassava, dairy and tomatoes. AfCFTA allows us to tap into regional markets that value our agricultural outputs.
“Finally, we are building frameworks for public-private partnerships to attract investments that will accelerate the development of necessary infrastructure, particularly in transportation and logistics.
Collaborating with both domestic and foreign investors fast tracks infrastructure development and creates the enabling environment for businesses to thrive under AfCFTA.”
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