Dangote Group, Flour Mills of Nigeria (FMN), and Tolaram are among the nine companies that have successfully completed their initial exports under the African Continental Free Trade Area (AfCFTA).

Other companies that capitalized on the initial AfCFTA opportunity include Hwani Industry Nigeria Limited, Le Look Nigeria Limited, Secure ID Limited, Avila Naturalle, Craft Methods Limited, and Ruchim Limited.

Nigeria has officially started trading within Africa on Tuesday, July 16, after five years of signing the AfCFTA agreement in Niamey, Niger.

With the launch of the Guided Trade Initiative (GTI) and Nigeria's first shipment under the AfCFTA protocol, the country has moved from planning to actively promoting trade under the agreement.

The GTI aims to facilitate meaningful commercial trading among state parties that have fulfilled the minimum trade requirements under the agreement by matching businesses and products for export and import, as stated by the National Action Committee on African Continental Free Trade Area.

The commencement of the initial shipment under the AfCFTA agreement saw nine Nigerian enterprises collaborate to export locally-produced goods from Apapa Port to various countries in the east, central, and north African regions.

Among these companies, Le Look Nigeria Limited was the first to be awarded an AfCFTA Certificate of Origin, granting them the privilege to engage in trade under the AfCFTA framework. This company, established by female entrepreneur Chinwe Ezenwa, specializes in the production of bags.

As part of the inaugural AfCFTA shipment, Le Look Nigeria Limited successfully exported bags to Kenya.

“My journey in making Nigerian bags started 39 years ago and I have been fighting to promote made-in-African goods when people dislike anything made-in-Africa, especially Nigeria. Today, our efforts have taken a centre stage in the world and we are recognised by the Office of AfCFTA and partners in Kenya, Rwanda, and Ethiopia,” Ezenwa told BusinessDay in Lagos.

As per her remarks, Nigerian product manufacturers are currently expanding into regional markets. The GTI under the AfCFTA protocol necessitates Nigerians to maintain consistency, resilience, and innovation without relying solely on government support.

Market penetration in Kenya, Rwanda, Ethiopia, and Ghana is comparatively easier than in Europe and America.

“The markets in these countries are huge because they are countries that do not have many industries and Nigeria’s huge population gives it a comparative advantage to gain from the AfCFTA trade area. We only need to make our people more productive by creating efficient work hours,” Ezenwa said.

Secure ID Limited, a Nigerian company, was the second company to take advantage of the continental trade agreement by exporting smart cards to Cameroon. The company is headed by Kofo Akinkugbe, a Nigerian technology entrepreneur serving as the group managing director.

Dangote Group, owned by Africa's wealthiest individual, exported clinkers to Cameroon. The conglomerate is owned by a man with a $20 billion refinery in Lekki, Lagos, boasting a capacity of 650,000 barrels.

Avila Naturalle, owned by Temitope Mayegun, is another beneficiary that exported Nigerian black soap and shea butter to Kenya. The business initially started with 30,000 worth of coconut oil but has now expanded to offer over 400 products in skincare, foods & supplements, water & drinks, and fashion categories.

Likewise, FMN exported native starch to Algeria. The diversified conglomerate, based in Apapa, Lagos, is managed by Omoboyede Olusanya, with John G. Coumantaros serving as the chairman of its board.

The Tolaram Group sent packaging materials to Egypt. Tolaram, the manufacturer of Indomie Instant Noodles, is purchasing Diageo's 58.02 percent stake in Guinness Nigeria. Craft Methods Limited also delivered alcoholic bitters to Uganda. Additionally, Ruchim Limited exported SIM and bank cards made in Nigeria to Kenya, and Hwani Industry Nigeria Limited transported Nigerian-made water closet sanitary sets to Kenya. Hwani was established in 2021.

The national coordinator of the National AfCFTA Coordination Office, Olusegun Awolowo informed BusinessDay during the launch that the event signifies Nigeria's preparedness to engage in official trade beyond the Economic Community of West African States (ECOWAS) nations. He mentioned that the countries mentioned earlier are the ones that have committed to the GTI, and this initiative will illustrate the duration it will require for the products to reach their intended countries. He also emphasized that Nigeria will need a significant amount of time to implement and assess all the protocols outlined in the AfCFTA agreement.

“With the inauguration, numerous Nigerian enterprises will prepare to capitalize on the opportunity due to the high quality of our products. It was remarkable to witness the domestic production of sanitary closets and bags.

“To effectively compete and dominate Africa, we must enhance our productivity, entrepreneurship, and manufacturing capabilities,” Awolowo stated.

For instance, as Ezenwa previously mentioned, the AfCFTA office visited my factory and observed that the ‘Adire,’ ‘Akwete,’ and ‘Aso oke’ fabrics utilized in the production of Le Look bags are sourced domestically, while 20% of the raw materials, such as zippers, are imported.

She noted that a Chinese-owned company can participate in AfCFTA trade, but to do so, they must establish a physical presence in Africa and ensure that 80% of their raw materials are sourced locally.

In the meantime, representatives from the port industry emphasized the need for Nigeria to simplify its port procedures in order to enhance the appeal of its exports to international purchasers.

Leo Ogamba, who serves as the president of the Shippers Association of Lagos (SAL), stressed the importance of Nigeria aiming for a more transparent and effective port system to minimize delays, lower demurrage fees, and boost the competitiveness of the country's exports in the global marketplace.

He elaborated that demurrage fees are charges that shippers face for not unloading their cargo within a specified time frame. These delays and fees can have a substantial effect on the total cost of exporting goods, reducing their competitiveness on the global market.