Oyo To Become Intra-African Trade Hub

Oyo To Become Intra-African Trade Hub - Makinde

Reported by Ayooluwa Afolabi

Oyo State Governor ‘Seyi Makinde has said the state is set to become a hub for intra-African trade.

The governor, who stressed the state’s readiness to embrace the future African Continental Free Trade Area (AFCFTA), noted that with its strategic location in Nigeria, its agricultural powerhouse and its emerging industrial sectors, Oyo State had the potential to become a critical player in intra-African trade.

According to The Nation, he said this at the 2024 Prosperity Africa Conference with the theme:‘Driving Trade, Innovation, and Sustainability for Prosperity,’ held in Addis Ababa, Ethiopia, over the weekend.

The governor, represented by his Chief of Staff, Segun Ogunwuyi, said Oyo State was aware that as a sub-national in Nigeria, it could leverage AFCFTA to drive growth, foster innovation and create prosperity.

He said the state had been working to position itself for African trade, adding that his government was aware that capitalizing on AFCFTA required active engagement, strategic planning and collaboration with national and regional partners.

“I do not see AfCFTA as a trade agreement; I see it as a transformative agenda aimed at reshaping Africa’s economic landscape. For sub-national governments like Oyo State, this is a great opportunity, he added.”

“AfCFTA promises to remove barriers, expand trade and ultimately foster industrial growth, competitiveness and prosperity. But the question is: how can we, as sub-national governments, strategically position ourselves to take full advantage of this agreement?\"

“Oyo State, with its strategic location in Nigeria’s Southwest, an agricultural powerhouse, and its emerging industrial sectors, has the potential to be a critical player in intra-African trade. We are already working to position ourselves for African trade.”

Makinde said Nigeria and its sub-nationals such as Oyo State faced significant barriers that limited their full participation, including bureaucratic customs procedures, infrastructure deficits in transport and logistic networks and non-tariff barriers.

He noted, however, that the state ‘’has been addressing these challenges by working on reducing bottlenecks and collaborating with federal authorities to streamline the customs procedures, reducing infrastructure deficit, interconnecting zones of the state and pushing for stronger alignment between federal and regional regulatory frameworks so as to address the non-tariff barriers.

He added: “By having a one-stop shop within Oyo State Investment and Public Private Partnership Agency (OYSIPA) to deal with approvals necessary for smooth movement of goods in and out of Oyo State, we have ensured smoother trade routes that align with the AfCFTA standards.

“Another critical barrier is our infrastructure deficits in transport and logistic networks. Without reliable transport routes, goods cannot move efficiently across borders, limiting our ability to participate in trade.

“However, we are committed to upgrading road networks, developing rail links and investing in energy infrastructure to support the free flow of goods across West Africa.”

The governor said AfCFTA offered opportunities, which the state was willing to tap into, noting the state was setting up a dedicated desk for AfCFTA-related opportunities so that small and medium scale enterprises, which were the backbone of the state’s economy, could access the African markets.

He noted that the state had invested in agribusiness development, having realized that it could turn its raw agricultural products into high-value exports that met AfCFTA’s needs, which would increase the state’s revenue, create jobs and drive sustainable economic development.

“Presently, we have rehabilitated the once moribund Fasola Livestock Settlement, which we have renamed Fasola Agribusiness Industrial Hub, where we have processing facilities for cassava, dairy and tomatoes. AfCFTA allows us to tap into regional markets that value our agricultural outputs.

“Finally, we are building frameworks for public-private partnerships to attract investments that will accelerate the development of necessary infrastructure, particularly in transportation and logistics. Collaborating with both domestic and foreign investors fast tracks infrastructure development and creates an enabling environment for businesses to thrive under AfCFTA.”