Nigerian gov't says yet to understand continental free trade agreement

ABUJA, Mar. 22 (Xinhua) -- The Nigerian government said on Wednesday it has not signed the African Continental Free Trade Area (AfCFTA) agreement because it is still reviewing the proposal.

The AfCFTA agreement is aimed at creating a single continental market for goods and services with free movement of businesses and investments.

A committee set up to continue with the review of the content of the proposal for the continental free trade agreement will come up with its findings within two weeks, the government said.

Some 44 African countries on Wednesday signed the agreement establishing the AfCFTA in Kigali, the capital city of Rwanda.

The signing took place during the 10th Extraordinary Session of the Assembly of the African Union (AU) on the AfCFTA. According to the AU, 19 African heads of state and government attended the summit.

Nigerian President Muhammadu Buhari did not attend the summit in Kigali.

Presidential spokesman Femi Adesina said Buhari would not want to agree to anything that would hinder local entrepreneurs "as on the surface the agreement had the capacity to do so."

Adesina said the Nigerian leader was of the view that the agreement could encourage the dumping of finished goods in Nigeria and contrary to the country's interest.

Nigeria is the most populous country in Africa and the continent's largest economy.

"The country had yet to understand the full economic and security implications of the agreement and that is why more consultations with stakeholders are necessary," the presidential spokesman added.

African bloc AU said the AfCFTA will make Africa the largest free trade area created in terms of the number of participating countries since the formation of the World Trade Organization. The AfCFTA could create an African market of over 1.2 billion people with a GDP of 2.5 trillion U.S. dollars, the pan-African bloc said.

The AfCFTA will progressively eliminate tariffs on intra-African trade, making it easier for African businesses to trade within the continent and cater to and benefit from the growing African market, said the AU.

The decision to form the AfCFTA was adopted in January 2012 during the 18th Ordinary Session of the Assembly of Heads of State and Government of the AU while AfCFTA negotiations were launched by the AU in 2015.