FG Unveils $1 Billion AfCFTA Financing Facility for Nigerian Exporters

The Federal Government has launched a $1 billion African Continental Free Trade Area Adjustment Fund to provide financing for Nigerian exporters looking to expand into African markets.

Vanguard reported that the fund is designed to accelerate Nigeria’s export-led growth agenda and help businesses take advantage of the opportunities under the AfCFTA agreement, which creates a single continental market for goods and services.

The facility will provide loans and guarantees to export-oriented businesses. It is expected to be managed by the Nigerian Export-Import Bank in partnership with commercial banks and development finance institutions.

The fund is also intended to help Nigerian companies manage the adjustment costs of transitioning to the new continental trade regime. The government said the facility would focus on boosting industrial competitiveness and expanding non-oil exports.

The AfCFTA, which came into force in 2019, aims to create the world’s largest free trade area by number of participating countries. Nigeria ratified the agreement in 2020 and has since been working on domestic frameworks to benefit from the arrangement.

Sources: Vanguard, Punch, Businessday