Lagos, Nigeria – Lucky Fibres, a subsidiary of the Tolaram Group, has completed Nigeria’s first export shipment to Kenya under the African Continental Free Trade Area (AfCFTA). The Lagos-based manufacturer, known for producing hair products, carpets, and rugs, encountered a brief setback when poor documentation caused a 24-hour delay in the shipment’s release.
Abdullahi Maiwada, National Public Relations Officer at Nigeria Customs Service (NCS), told BusinessDay that the issue stemmed from incomplete and incorrectly described export documentation. “The products to be exported were not properly described, and quantities were not accounted for,” Maiwada explained, adding that the issue was quickly rectified once the documents were adjusted to meet required standards.
The shipment, which marks Nigeria’s first AfCFTA export to Kenya, follows the protocol’s broader goal to foster trade within Africa. Launched in 2021, the AfCFTA seeks to create a single market for goods and services across 54 of Africa’s 55 member states, creating one of the world’s largest free trade areas by participant number.
AfCFTA Opens New Markets for Nigerian Businesses
The AfCFTA agreement presents significant opportunities for Nigerian businesses, such as Lucky Fibres, to tap into a larger consumer base. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), emphasized the economic potential of the agreement, particularly with access to a market of 1.5 billion people. He noted that businesses can expand their competitiveness by leveraging innovation, improved logistics, and government support for a stable macroeconomic environment.
“For businesses with the capacity to scale, AfCFTA offers economies of scale, reduced costs, and the potential to compete globally,” Yusuf said. However, he stressed that businesses must invest in creativity and technology to maximize this opportunity, while governments must improve infrastructure, payment systems, and local currency trading mechanisms.
Cross-Border Trade Between Nigeria and Kenya Expected to Grow
Nigeria’s first export to Kenya under the AfCFTA is expected to strengthen trade relations between the two nations. Paul Alaje, Chief Economist at SPM Professionals, noted that the shipment would help improve economic ties between Nigeria in the west and Kenya in the east, creating new jobs and boosting productivity in both countries.
Alaje also emphasized the need for enhanced support for small and medium-sized enterprises (SMEs) in Nigeria to help them compete on the global stage. He called for government initiatives to provide grants and create a conducive environment for manufacturers to thrive.
“The government has a critical role to play in improving infrastructure, such as roads, rail, and ports, to make intra-Africa trade more efficient,” he said. “This is essential for businesses to capitalize on the benefits of AfCFTA.”
Looking Ahead
The AfCFTA is expected to significantly reshape trade dynamics across Africa, but the success of the agreement will depend on continued collaboration between governments, businesses, and institutions to remove barriers and enhance connectivity. As businesses like Lucky Fibres navigate this new trade environment, their success will hinge on their ability to adapt to regulatory requirements, innovate in production, and integrate into the broader African market.