Nigeria has officially gazetted its Provisional Schedule of Tariff Concessions (PSTCs) for the African Continental Free Trade Area (AfCFTA), becoming the 23rd State Party to take this significant step. This development represents a crucial advancement towards the comprehensive implementation of the AfCFTA Agreement. It is important to understand what the AfCFTA Provisional Schedule of Tariff Concessions (PSTC) mean, the implications of gazetting same and the significance for Nigeria.

What is the AfCFTA Provisional Schedule of Tariff Concessions?

The Provisional Schedule of Tariff Concessions is a major outcome of the Phase 1 negotiations under the AfCFTA Protocol on Trade in Goods. Tariff concessions refer to the agreed reductions or eliminations of duties on certain goods, making them more competitive in regional trade. They are specific reductions or exemptions in customs duties that are granted based on compliance with various trade agreements, government programs, or international obligations.

According to Article 1 of the AfCFTA Protocol on Trade in Goods: “Schedule of tariff concessions” means a list of negotiatedspecific tariff concessions and commitments by each State Party. It sets out, transparently, the terms, conditions and qualifications under which goods may be imported under the AfCFTA.  

The PSTC is a temporary list of tariff reductions that a country agrees to under a trade agreement. It specifies the products and corresponding tariff rates that will be progressively lowered or eliminated over time, ensuring preferential market access among member states. Each African Country has a long list of goods that are traded between countries, which is subcategorised using a Tariff Schedule, which also lists the associated tariffs.

The PSTC is provisional in nature, this means that it is temporary, it may undergo review, adjustments, or finalization subject to ongoing negotiations or domestic regulatory approvals.

Implication of gazetting the AfCFTA – PSTC

Official gazettes are primary sources of law published by federal, state, or local governments to disseminate new legislation, regulations, and decisions of governmental bodies. The official gazette serves as proof of the existence and authenticity of a law. This administrative process primarily aims to create public awareness about such Acts, Regulations, and Policies.

Therefore, Nigeria’s gazetting of its AfCFTA – PSTC is an official announcement to the public of the existence and authenticity of the PSTC, thereby ensuring that businesses, organisations, and citizens are informed of the new regulation.

What does it mean for Nigeria?

By gazetting its AfCFTA Provisional Schedule of Tariff Concessions, Nigeria has shown that it is ready to begin trading under the AfCFTA. This will lead to expanded market access for Nigeria beyond the ECOWAS region. Culminating in increased trade and investment resulting from lower costs for imported inputs.

The elimination of tariffs on 90% of traded goods will make Nigerian products more competitive across the continent. This will create fresh business opportunities, driven by heightened trade activities and targeted support for SMEs to grow and scale their operations.

According to the Honourable Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, on her X social media account, AfCFTA unlocks massive trade opportunities for Nigeria: access to more than 1.3 billion global market, diversifies exports beyond oil and a more than 52% boost in intra-African trade by 2025.