Nigerian Government urges Africa to turn resource wealth into economic prosperity

The Nigerian Government has urged African nations to develop native manufacturing and raw-material processing, warning that the continent’s continued dependence on commodity exports limits its economic potential and participation in international commerce.

Vice President Kashim Shettima made the decision on Monday in Abuja, saying Africa should transfer past exporting uncooked supplies and importing completed merchandise to creating industries that generate greater economic worth.

Mr Shettima, represented by the Special Adviser to the President on Economic Affairs, Tope Fasua, spoke at a global convention on the African Continental Free Trade Area (AfCFTA) and the Geoeconomics of African States, organised by the International Centre for Regional Integration and Trade Research (ICRITR) of Nnamdi Azikiwe University, Awka.

“Resources confer potential. It is the capacity to process, transform, innovate, and negotiate that converts potential into prosperity,” Mr Shettima mentioned.

He famous that Africa continues to provide uncooked supplies to industries elsewhere, however imports completed merchandise at greater costs, shedding a lot of the economic worth generated from its assets exterior the continent.

The vp cited cocoa and crude oil as examples of commodities Africa exports with out sufficiently creating downstream industries to manufacture merchandise from them.

He mentioned the Federal Government is supporting the institution of three lithium-processing factories in Nasarawa, Kaduna and Abuja as a part of efforts to develop Nigeria’s capability within the vital minerals worth chain.

He additionally famous that Africa’s economic transformation would depend upon its capacity to transfer from major manufacturing to processing, manufacturing, know-how and knowledge-based companies.

Africa’s resource wealth and international commerce

The director-general of the World Trade Organisation, Ngozi Okonjo-Iweala, additionally enjoined African nations to bolster industrialisation and regional worth chains to enhance the continent’s share of worldwide commerce.

Represented by her Senior Adviser, Jean-Yves Remy, Mrs Okonjo-Iweala mentioned Africa is strategically positioned to profit from altering international provide chains on account of its pure assets, youthful inhabitants and connections to worldwide markets.

According to her, the continent holds practically 30 per cent of the world’s vital mineral reserves, together with cobalt, lithium, manganese, copper, nickel and graphite, however accounts for under about three per cent of worldwide exports.

She cited intra-African exports, which contributed about 17 per cent of the continent’s merchandise exports in 2024, as proof of ample room to develop regional commerce.

Mrs Okonjo-Iweala described the AfCFTA as a device to develop manufacturing and develop regional worth chains. She recognized infrastructure gaps, institutional weaknesses, and non-tariff obstacles as main obstacles to implementation.

She known as for improved roads, ports, electrical energy, delivery connections and commerce finance, alongside environment friendly customs procedures and predictable rules to facilitate cross-border commerce.

The WTO chief additionally urged African universities and WTO chairs to strengthen analysis, coaching and coverage engagement, saying mental capability is important to rising the continent’s economic affect.

Africa should convert market dimension into economic energy

Ngozi Egbuna, WTO chair and Nigeria’s director of ICRITR at Nnamdi Azikiwe University, mentioned Africa should transfer past talks about its inhabitants and pure assets to tackle how these benefits might translate into economic energy.

She famous that Africa’s inhabitants of about 1.6 billion folks, coupled with its huge resource base, has not weaned it off dependence on overseas markets, know-how, financing and worth chains.

She additionally warned that signing commerce agreements and establishing a continental market shouldn’t be an computerized reply to economic integration, including that the actual measure of success needs to be whether or not African companies can commerce efficiently throughout borders and generate jobs.

Former President Goodluck Jonathan additionally known as for stronger economic cooperation amongst African nations, saying the continent wants to transfer past making a single market to creating an built-in productive financial system.

Mr Jonathan, represented by John-Kennedy Opara, the manager secretary of the Nigerian Christian Pilgrim Commission, mentioned the AfCFTA affords a chance to overcome the fragmentation of African markets and strengthen cooperation amongst nations.

“Our task is not merely to create one African market. It is to create one African productive economy,” he mentioned.

He argued that Africa’s bargaining energy would rely much less on the assets beneath its soil than on its capacity to rework them into productive property.

Mr Jonathan known as for larger funding in agro-processing, prescription drugs, automotive industries, fertilisers, equipment and renewable vitality gear to strengthen regional worth chains.

He additionally urged African governments to put money into schooling, know-how and entrepreneurship whereas making certain that girls, younger folks and small companies profit from continental integration.

The AfCFTA, which entered into pressure in 2019, seeks to set up a single continental marketplace for items and companies and strengthen economic integration amongst African nations.

READ ALSO: ANALYSIS: What a weakened Trump could mean for Nigeria, other African countries

The settlement is anticipated to scale back commerce obstacles, encourage funding and allow companies to function throughout nationwide borders with fewer restrictions.

However, implementation has been constrained by infrastructure deficits, excessive transportation prices, restricted entry to finance, border delays and variations in requirements and customs procedures.

The vice-chancellor of Nnamdi Azikiwe University, Bond Anyaehie, mentioned the continent should construct aggressive enterprises able to manufacturing merchandise, offering companies and financing commerce inside Africa.

He acknowledged the success of the AfCFTA needs to be measured by Africa’s capacity to supply inputs, manufacture merchandise and finance commerce by way of native establishments.

He warned that commerce liberalisation with out satisfactory infrastructure and a continental market with out aggressive African companies can’t ship significant economic transformation.