Four months into Nigeria’s participation in the African Continental Free Trade Area (AfCFTA) under the Guided Trade Initiative, local exporters are grappling with the country’s foreign exchange crisis, which is severely limiting their ability to take advantage of the platform’s $3.4 trillion GDP potential. Although 10 Nigerian companies were chosen to export products to East, Central, and North Africa, the rising cost of freight due to forex shortages has emerged as a major hurdle.
Le Look Nigeria Limited, one of the participating exporters, has managed to export only 5,000 school bags to Kenya since the launch in July, far short of its target of 20,000. The company’s CEO, Chinwe Ezenwa, attributed the challenges to high freight costs, urging the government to provide better loan facilities to ease the financial burden on exporters.
Experts have also pointed to a deeper issue – the lack of an export culture and capacity within Nigeria. Dr. Obiora Madu, Director-General of the African Centre for Supply Chain, emphasized that while there are opportunities under AfCFTA, Nigerian exporters need more awareness, knowledge, and support to fully leverage them.
