Nigerian Exporters Struggle with Forex Crisis, Hindering AfCFTA Participation

Four months after Nigeria initiated its involvement in the African Continental Free Trade Area (AfCFTA) under the Guided Trade Initiative, exporters are facing significant challenges due to the country’s foreign exchange crisis. Despite the Federal Government’s July announcement that 10 Nigerian companies would be exporting goods across Africa, exporters like Le Look Nigeria Limited have reported difficulties, with freight costs skyrocketing due to the forex situation.

Chinwe Ezenwa, CEO of Le Look Nigeria Limited, revealed that she has only been able to export 5,000 bags to Kenya, far short of the 20,000 planned, citing high freight costs. She urged the government to provide more support for SMEs by offering better loan facilities to mitigate the effects of the forex crisis.

Experts, like Dr. Obiora Madu of the African Centre for Supply Chain, have also criticized Nigeria’s slow pace in trade, attributing it to a lack of export culture and preparedness rather than limited opportunities.