Nigeria has formally gazetted its Preferential Tariff Concessions (PSTCs) under the African Continental Free Trade Area (AfCFTA), becoming the 23rd country to do so.
- Nigeria formally gazettes its Preferential Tariff Concessions under AfCFTA, becoming the 23rd country to do so
- Nigeria’s action signals a commitment to implementing the agreement and opens doors for local companies to benefit from reduced tariffs
- AfCFTA aims to promote intra-African trade and sustainable development, countering external tariff pressures on African economies
The announcement was made via AfCFTA’s official X (formerly Twitter) page, which congratulated Nigeria for “bringing the AfCFTA trade agreement to life.”
By gazetting its trade commitments, Nigeria has officially made public its tariff concessions, ensuring that businesses, organizations, and citizens are informed of the new regulations now in force.
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This move marks a crucial step toward the full implementation of the AfCFTA Agreement.
“For traders, this provides clarity and certainty, confirming that Nigeria will grant preferential tariff treatment to eligible goods upon importation, in line with its commitments under the AfCFTA Agreement,” the AfCFTA Secretariat stated.
Nigeria’s journey to AfCTFA ratification
Although Nigeria signed the AfCFTA agreement in 2018, it was initially hesitant to ratify it due to concerns about potential negative impacts on local industries and entrepreneurship.
After extensive consultations with domestic stakeholders, including manufacturers, trade unions, and small business owners, Nigeria officially ratified the AfCFTA agreement by depositing its instrument of ratification with the African Union Commission in 2020.
The recent action by the Nigerian government to fully gazette its Preferential Tariff Concessions (PSTCs) signals a decisive commitment to implementing the agreement.
This development also opens the door for Nigerian companies to benefit from reduced tariffs when exporting to other African countries that have gazetted their own PSTCs, potentially boosting local industries, creating jobs, and improving access to African markets.
AfCFTA and Africa’s trade future
The African Continental Free Trade Area (AfCFTA) is a flagship initiative under the African Union’s Agenda 2063—a long-term vision aimed at fostering inclusive and sustainable development across the continent over a 50-year horizon.
AfCFTA has emerged as a critical and strategic policy, particularly in light of President Donald Trump’s recent imposition of reciprocal tariffs, which disproportionately affect many of Africa’s poorest economies.
Initially, only seven countries—Rwanda, Cameroon, Egypt, Ghana, Kenya, Mauritius, and Tanzania—were approved to commence trading under AfCFTA on a pilot basis in 2022. Since then, momentum has steadily grown.
As of now, 23 African countries have officially gazetted their Preferential Tariff Concessions (PSTCs), with Nigeria becoming the most recent addition.
By domesticating its trade commitments, Nigeria becomes the 23rd country to legally implement tariff concessions under the agreement, thereby creating a transparent and predictable environment for businesses.
This marks a significant step in operationalizing the AfCFTA framework, providing legal clarity and signaling a stronger commitment to intra-African trade integration.
According to a report by United Nations Conference on Trade and Development (UNCTAD), President Trump’s push for “reciprocal tariffs” on 57 trading partners includes 17 of Africa’s poorest nations—countries that are likely to be severely affected by the steep tariffs.
These nations contribute little to the U.S. trade deficit but now face disproportionately high trade barriers that could further weaken their fragile economies.
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In contrast, the implementation of the African Continental Free Trade Area (AfCFTA) offers a regional alternative.
By promoting intra-African trade, the AfCFTA allows member states to trade more freely with each other under mutually beneficial regulations. This could strengthen regional integration and reduce dependence on Western markets.
However, the full benefits of the agreement may be hindered by the low production capacity and limited industrialization in many African countries, which constrains their ability to fully participate in and benefit from the continental market.
