Stimulating Economic Growth in Northern Nigeria: Capitalizing on the AfCFTA

The African Continental Free Trade Area (AfCFTA), a momentous trade agreement, holds great potential for stimulating the economy of Northern Nigeria across pivotal sectors such as agriculture, mining, and textiles. With a steadfast commitment to the AfCFTA, Northern Nigeria stands to benefit from access to a market encompassing 53 African countries and a potential consumer base of nearly 1.3 billion people. This presents an unprecedented opportunity for increased local production, the promotion of regional value chains, and active participation in intra-African trade.

One of the most significant prospects lies within the agricultural sector, given the region’s favourable climate and abundant arable land. Recent government policies promoting local production have already resulted in substantial growth in the production of rice, with Northern Nigeria playing a significant role in this. Consequently, the region is well-positioned to derive significant benefits from the AfCFTA and enhance its contribution to the regional value chain.

Moreover, Northern Nigeria’s fertile plains and favourable climate make it well-suited to bolster food security both domestically and across Africa. Despite having vast arable land, Africa currently expends approximately $35 billion on food imports. Embracing the AfCFTA can enable the region to intensify agriculture, export key commodity crops, and make a positive contribution to the regional value chain.

The region’s ecology also presents opportunities for growth in livestock farming, as domestic demand for livestock products exceeds supply. Considering that it is not a coastal region, inland fish production is another underexplored opportunity, with several inland water bodies and wetlands suitable for fish production.

In the mining sector, Northern Nigeria boasts rich natural resources such as gold, limestone, coal, gemstones, and copper. By prioritising value addition before exportation, foreign and domestic investment can be bolstered to create new opportunities and revenue streams.

The textile industry, once a dominant force in Northern Nigeria, has encountered challenges and declined in recent decades. Nevertheless, the AfCFTA presents an opportunity for its revitalization, particularly in terms of employment, particularly for women, both in production and retail. However, the principle of rules of origin of the AfCFTA poses a challenge for the textile industry in Northern Nigeria, hindering the export of imported textile products dominating the market.

To unlock the potential of the textile sector, the region must shift focus from importing to establishing domestic textile mills. This will enable Northern Nigeria to fully participate in the AfCFTA and position itself as a significant producer and exporter of textiles in the region and beyond.

As Northern Nigeria harnesses the benefits of the AfCFTA, addressing challenges such as inadequate infrastructure, unreliable power supply, and security concerns is crucial. This responsibility primarily lies with the federal government and the governors of the 19 northern states.

Improving infrastructure and ensuring accountability for public officials should be top priorities. The upcoming 2023 elections provide an opportunity for citizens to demand better performance in addressing infrastructure and security concerns. Moreover, communication through social media and conventional news outlets can be used to articulate expectations and hold officials accountable for their promises and actions.

Overall, the AfCFTA offers Northern Nigeria an unparalleled opportunity for economic growth, job creation, and establishing itself as a significant player in agriculture, mining, and textiles on the African continent. Overcoming challenges through strategic planning and concerted efforts will be vital in turning obstacles into stepping stones for progress and prosperity.

As we continue our journey to make the AfCFTA work for Northern Nigeria, it is imperative to seize this golden opportunity and work collectively to bring about positive change for the region and the continent as a whole. For more information, Gambo works at the National Industrial Court and can be reached at [email protected].