The Initiative for African Trade and Prosperity (IATP) has highlighted the potential of the African Continental Free Trade Agreement (AfCFTA) to reduce Nigeria’s unemployment rate and significantly enhance its economy within the next decade.
In its newly released report, *“Africa’s Free Trading Future,”* the IATP examined the AfCFTA’s benefits for Nigerians and Africans at large, noting its potential to increase intra-African trade by 52% by 2035. Given Nigeria’s substantial market size, the agreement is expected to bring notable advantages.
With Nigeria’s unemployment rate at approximately 40%, the report emphasized that the AfCFTA could drive industrial growth and expanded trade, thereby significantly lowering youth unemployment.
Alex Jelloain, one of the report’s authors, explained that the strategic implementation of the AfCFTA could transform Africa’s economy through increased wages, a robust manufacturing sector, and agricultural efficiency.
Lanre-Peter Elufisan, Executive Director of the Ominira Initiative, stressed that the AfCFTA presents an opportunity for Nigeria to diversify its economy beyond crude oil exports by expanding into manufacturing and agriculture. He noted that the agreement could lift 50 million Africans out of poverty, with Nigeria projected to achieve one of the most significant poverty reductions.
The report also outlined key policy recommendations to maximize the AfCFTA’s benefits, including investments in infrastructure such as roads, energy, and communication; aligning national policies with AfCFTA objectives; and providing financial and technical support to small and medium-sized enterprises to drive economic growth.
