AfCFTA Fund Alone Won’t Boost Exports Without Reforms, Say Freight Forwarders

By Cynthia Alo

APFFLON, the Africa Association of Professional Freight Forwarders and Logistics of Nigeria, cautioned that Nigeria might miss out on the advantages of the African Continental Free Trade Area (AfCFTA) even after the federal government approved a $1 billion credit facility for exporters and businesses.

While the association acknowledges that financing is essential, it argues that money alone cannot address the issues that weaken Nigerian products' competitiveness across Africa.

Yesterday, APFFLON’s national president, Otunba Frank Ogunojemite, highlighted that inadequate infrastructure, elevated production costs, multiple taxes, foreign‑exchange constraints, steep port fees, and complex export procedures hinder Nigerian manufacturers and exporters from competing with peers elsewhere on the continent.

He warned that if these barriers persist, Nigeria could become a market for goods made in other African nations rather than a leading exporter under the trade pact.

Despite this, the group praised the federal government for approving the facility, calling it a constructive move to help firms seize AfCFTA opportunities. It stressed that Nigeria must first tackle structural trade and production problems before allocating substantial funds to financing schemes.

“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.”

He added that numerous manufacturers and SMEs already face difficult operating conditions and may not reap benefits from the credit scheme if the business climate stays hostile.

He said that many issues that stalled earlier