APFFLON commends FG on $1b AfCFTA credit facility

The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has commended the Federal Government of Nigeria for approving the proposed $1 billion African Continental Free Trade Area (AfCFTA) Credit Facility designed to support Nigerian exporters and businesses in accessing opportunities within the African market.

However, the Association has urged the Federal Government to address the critical challenges confronting local manufacturers, exporters, freight forwarders, logistics operators, and small-scale businesses before committing substantial resources to AfCFTA financing initiatives.

In a statement by the APFFLON President, Otunba Frank Ogunojemute, the association gave this commendation, noting “while AfCFTA presents enormous opportunities for economic growth and regional integration, Nigeria’s ability to maximize these 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. These include poor infrastructure, high production costs, inadequate power supply, multiple taxation, foreign exchange constraints, excessive port charges, cumbersome export procedures, and regulatory bottlenecks that continue to frustrate businesses engaged in international trade.

The Association expressed concern 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 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, government must first create an enabling environment that allows local industries to compete effectively with their counterparts across Africa,” the statement noted.

APFFLON therefore called on the Federal Government to prioritize:

Reduction of port charges and elimination of unnecessary trade bottlenecks.

Full implementation of the National Single Window and other trade facilitation reforms.

Improvement of road, rail, port, and border infrastructure.

Simplification of export documentation and cargo clearance processes.

Support for local manufacturers through tax incentives and reduced production costs.

Improved access to foreign exchange for exporters and manufacturers.

Strengthening collaboration among government agencies responsible for trade regulation and export promotion.

Development of policies that encourage value-added exports and industrial growth.

The Association emphasized that unless these 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.