• ABOUT
  • CONTACT
  • ADVERTISE
  • PRIVACY POLICY
  • DONATE
  • SUBSCRIBE
  • WRITE FOR US
WELCOME TO MY WOVEN WORDS
  • Home
  • Favourite
    • Culture
    • History
    • Mythology
    • Folktale
    • Biography
    • Featured
      • Face of the Week
      • Brand of the Week
      • Interview
  • How To
    • Recipe
    • Relationship
    • Fashion
    • Health
    • Food
    • Motivational
    • Inspirational
    • Entrepreneurship
    • Business
    • Technology
  • Entertainment
    • Laugh Out Loud
    • Music
    • Article
    • Interview
    • Album Review
    • Omo Baba Ogunleye
    • Short Story
    • Poetry
  • Self Development
    • Motivational
    • Inspirational
    • Business
    • Entrepreneurship
    • Recipe
    • Interview
    • Biography
    • Relationship
    • Health
  • Literature
    • Competition Entry
    • Article
    • Poetry
    • Short Story
  • Columns
    • Poet Arin
    • Emmanuel Ikoromasoma
    • Omo Baba Ogunleye
    • Communicate Your Transformation
    • Superlight’s Guidelines
    • Janna Onyemaobi
    • De Jakins
No Result
View All Result
  • Home
  • Favourite
    • Culture
    • History
    • Mythology
    • Folktale
    • Biography
    • Featured
      • Face of the Week
      • Brand of the Week
      • Interview
  • How To
    • Recipe
    • Relationship
    • Fashion
    • Health
    • Food
    • Motivational
    • Inspirational
    • Entrepreneurship
    • Business
    • Technology
  • Entertainment
    • Laugh Out Loud
    • Music
    • Article
    • Interview
    • Album Review
    • Omo Baba Ogunleye
    • Short Story
    • Poetry
  • Self Development
    • Motivational
    • Inspirational
    • Business
    • Entrepreneurship
    • Recipe
    • Interview
    • Biography
    • Relationship
    • Health
  • Literature
    • Competition Entry
    • Article
    • Poetry
    • Short Story
  • Columns
    • Poet Arin
    • Emmanuel Ikoromasoma
    • Omo Baba Ogunleye
    • Communicate Your Transformation
    • Superlight’s Guidelines
    • Janna Onyemaobi
    • De Jakins
No Result
View All Result
WELCOME TO MY WOVEN WORDS
No Result
View All Result

MyWovenWords » NIGERIA SIGNS AFCTCA: IS FREE TRADE REALLY THE ANSWER?

NIGERIA SIGNS AFCTCA: IS FREE TRADE REALLY THE ANSWER?

by Johnson Okunade
August 4, 2019 - Updated on March 27, 2020
in Economics, Economy, Nigeria, Oladele Abigail
Reading Time: 2 mins read
A A
3
NIGERIA SIGNS AFCTCA: IS FREE TRADE REALLY THE ANSWER?
SHARE THIS POST:

NIGERIA SIGNS AFCTCA: IS FREE TRADE REALLY THE ANSWER?

WRITTEN BY OLADELE ABIGAIL

The Nigerian government recently signed the Africa’s free trade agreement (AFCTCA). The main aim of the trade agreement is to reformulate and redefine trade relations among African countries. That is, buying and selling among African countries will take place without the imposition of artificial barriers such as the absence of custom duties, quotas, embargos. This is to create a single market for goods and services which would be done through the free movement of these goods. According to them, it will untie 1.3 billion people, create a $3.4 trillion economic bloc and boost trade within the continent. It is also worthy to note that China has signed bilateral trade agreement with more than 40 countries in Africa

The chairman of the union, Egyptian President, Abdel Fattah al-Sisi commented that ‘the success of the AFCTCA will be the real test to achieve the economic growth that will turn our people’s dream of welfare and quality of life into a reality’. This births the question, is free trade really the answer?

There was however, a delay in signing the trade agreement by the Nigeria president, Muhammad Buhari. According to him, the government needed more time to consult with some key and major stakeholders of the economy which are not limited to the Manufacturers Association of Nigeria, the Nigeria Labour Congress, Nigeria Institute for advanced legal studies, Aviation association group, Nigeria association of small and medium enterprises. We believe that after due consultation and consideration with the various stakeholders, the Nigeria government made the right decision in signing the agreement. However, as there are positive implications to their decisions, we believe that the government is aware of the negative side and have therefore taken appropriate safeguards and measures.

TABLE OF CONTENTS show
OPINION

OPINION

The trade agreement is quite beneficial to the Nigerian economy as it tends to improve trade among African countries and will create the opportunity for Nigeria to export her products to other countries thereby creating access to a larger market and would help in job creation. The small and medium enterprises aren’t left out as this agreement could help them attain economies of scale. All this put together will help boost economic growth.

Taking a close look, this agreement might crowd out domestic industries especially infant companies who will have to compete with foreign firms. If infant companies don’t survive this undue competition, it will aggravate poverty, unemployment and crime. Also, the ‘big’ companies aren’t left out as they are faced with a huge competition from companies that produces substitute goods. Individuals now have a large basket of goods to choose from. With this, there is a possibility of a reduced sales and revenue. With reduced sales, organizations will lay people off. There is also the possibility of degradation of natural resources since companies are faced with a larger market and for the government, no more revenue from tariffs. The government also didn’t give us details on how the importation of dangerous commodities and goods that embargos have been placed on will be restricted from entering into the country.

Taking a look at economic theory, economist who contributed to the development of international trade argued that a country should go into trade with countries in which it has a comparative cost advantage over or an absolute advantage. One of the assumptions of this theory was that there is the free flow and mobility of factors of production, it was however concluded that the principle couldn’t work due to some of their unrealistic assumptions which included that there is no free transport between the countries of the world. So is free trade really the answer? It is important to note that the World Trade Organization (WTO) encourages free trade among countries. According to the organization, it will boost the economic growth of the countries involved.

Recalling the Egyptian President, Abdel Fattah al-Sisi, we really hope that through the free trade system, the Nigeria government will achieve the economic growth that will turn the people’s dream of welfare and quality of life into a reality and will prove to us that Free trade is the answer. In all, appropriate safeguards should be put in place to protect some sectors of the economy. Also, the government should use this opportunity to create a competitive economy and attain the platform of a leadership role in Africa.

By Oladele Abigail

Contact me

Instagram: _tijesuni
E-mail: [email protected]
Mobile number: 08163547036

About me
Oladele Abigail, an economics graduate of Bowen University who applies her passion for writing to her career path.

Please drop your opinion in the comment box below, It really matters.

THANKS A MILLION!

Thanks for visiting My Woven Words; we still write what is right!


SHARE THIS POST:

Related Posts

ELECTRONIC MEANS OF TRANSFERRING ELECTION RESULTS BILL IN THE NIGERIAN ELECTORAL ACT AMENDMENT
Nigeria

ELECTRONIC MEANS OF TRANSFERRING ELECTION RESULTS BILL IN THE NIGERIAN ELECTORAL ACT AMENDMENT

July 29, 2021 - Updated on January 14, 2023
Bitcoins - MY WOVEN WORDS
Economics

Digital Currency (Bitcoins) And The Future Of Naira

January 7, 2021 - Updated on February 3, 2023
BOLA AHMED ADEKUNLE TINUBU: THE FALL OF AN EMPEROR AT LEKKI TOLL GATE
Nigeria

BOLA AHMED ADEKUNLE TINUBU: THE FALL OF AN EMPEROR AT LEKKI TOLL GATE

October 23, 2020
THE ECONOMICS BEHIND BIG BROTHER NIGERIA
Economics

THE ECONOMICS BEHIND BIG BROTHER NIGERIA – BY OLADELE ABIGAIL

October 6, 2020
NAIJA @ 60 THE JOURNEY SO FAR WRITTEN BY DANIEL OBI
Nigeria

NAIJA @ 60: THE JOURNEY SO FAR – WRITTEN BY DANIEL OBI

October 6, 2020 - Updated on January 14, 2023
60 MALARIA IN NIGERIA WRITTEN BY OLUWATOBI OLADIPUPO
Guidelines

60: MALARIA IN NIGERIA – WRITTEN BY OLUWATOBI OLADIPUPO

October 6, 2020 - Updated on January 14, 2023
Load More

Comments 3

  1. Temitope Alo says:
    4 years ago

    This AfCTA is both a big opportunity for Nigeria to scale up or a big threat to reduce us to a dumping ground…

    If within few years from now, we are unable to mass produce competitive products that are also low cost for the more than 1 billion people in Africa, we’d be the biggest loser… The bigger our population, the bigger our loss…

    But if we can sharpen our production skills, we could as well be the biggest winner in this agreement.. Although, I think small and low populated countries like Ghana may be the winners in this, because they have a small dosmetic consumption and more than a billion people to produce for… If we get our policies right and work smart enough… It could work for us..

    Back to reality, we’re closer to losing than winning… 😏

    Loading...
    Reply
    • Williams James says:
      4 years ago

      I agree with you Temitope Alo

      We actually have an edge over other countries, that’s if our government will maximize this opportunity. I believe we should focus more on producing goods to be exported from the country, rather than import from other African countries.

      A big thanks to the writer

      Loading...
      Reply
  2. Temitope Alo says:
    4 years ago

    Great! 👍🏽👍🏽👍🏽👍🏽👍🏽

    Loading...
    Reply

COMMENT; JOIN THIS CONVERSATION! Cancel reply

Donate

Recent Posts

  • How to Prepare Amora a Typical Tarok Food (Amwam)
  • A Recipe for Masa (Rice Cake)
  • A Recipe For Plateau Food Gote (Gwote) or Acha
  • Langtang: Home of Fearless Tarok Militias and Generals
  • The Tarok People of Langtang, Plateau State, Nigeria
  • Biography of Late Brig-General John Nanzip Shagaya (rtd)
  • Biography of Sir Joseph Ntung Ari, DG of ITF
  • The Biography of General Domkat Yah Bali, The Late Ponzhi Tarok
  • Download Mwaghavul Mu Yaghal Audio Music By Ezra Jinang
  • Download Likitan Likitoci Audio Music by Ezra Jinang
  • Download Plateau Mulkin Sama Audio Music by Ezra Jinang
  • Download Rawan Plateau Audio Music by Ezra Jinang
  • Download One Plateau Audio Music by Ezra Jinang
  • Download Sweet Plateau Audio Music by Ezra Jinang
  • The Biography of Sunday Garba Biggs
  • The Biography of Barrister Caleb Manasseh Mutfwang

Donate

Advertise
advertise with us Woven

Subscribe to Woven TV

KINDLY SUBSCRIBE TO OUR MAILING LIST!

STAY WOVEN!!!

Get our latest updates and exclusive contents on a platter of gold!

We only write what is right

ABOUT US

My Woven Words is an online platform with the sole purpose of promoting and providing quality lifestyle content on a platter of gold. Founded in 2016, today, it is one of the most visited blogs in Nigeria as a great repository of awesome and propelling write-ups.

As of July 2021, My Woven Words Boast of more than 1,500 lifestyle blog posts/articles which makes it a world-class platform where everyone access loads of Historical/cultural content | Poems | Short stories | Contents on Health and Personal Hygiene | Old/Rare Music Download | Isese Music Download | African Folktales | Motivation | Food Recipes | Biographies | Interviews | Relationship Tips, and much more exquisite, best write-up ever. All the contents are verified, detailed, and well-written.

 

Email Us: [email protected]

Call Us: +2349078111978

COPYRIGHT

Copyright © 2021 by My Woven Words: No part of this published blog post and all of its contents may be reproduced, on another platform or webpage without a prior permission from My Woven Words except in the case of brief quotations cited to reference the source of the blogpost and all its content and certain other uses permitted by copyright law. For permission requests, contact the admin on [email protected], or Call him on +2349078111978

 

© 2016 - 2023 My Woven Words - We Only Write What Is Right | Developed by Morrebs ICT

No Result
View All Result
  • Home
  • Favourite
    • Culture
    • History
    • Mythology
    • Folktale
    • Biography
    • Featured
      • Face of the Week
      • Brand of the Week
      • Interview
  • How To
    • Recipe
    • Relationship
    • Fashion
    • Health
    • Food
    • Motivational
    • Inspirational
    • Entrepreneurship
    • Business
    • Technology
  • Entertainment
    • Laugh Out Loud
    • Music
    • Article
    • Interview
    • Album Review
    • Omo Baba Ogunleye
    • Short Story
    • Poetry
  • Self Development
    • Motivational
    • Inspirational
    • Business
    • Entrepreneurship
    • Recipe
    • Interview
    • Biography
    • Relationship
    • Health
  • Literature
    • Competition Entry
    • Article
    • Poetry
    • Short Story
  • Columns
    • Poet Arin
    • Emmanuel Ikoromasoma
    • Omo Baba Ogunleye
    • Communicate Your Transformation
    • Superlight’s Guidelines
    • Janna Onyemaobi
    • De Jakins

© 2016 - 2023 My Woven Words - We Only Write What Is Right | Developed by Morrebs ICT

Sorry, cannot copy or rightclick.

 

Loading Comments...
 

    %d bloggers like this: