IMPLICATIONS OF THE AFRICAN CONTINENTAL FREE TRADE AREA (AfCFTA) ON THE NIGERIA’S MANUFACTURING SECTOR
Abstract
This study examines AfCFTA’s implications for Nigeria’s manufacturing sector, focusing on potential benefits, and challenges, using two hypotheses. The study adopted a cross-sectional design, covering 65 manufacturing firms with 6,555 staff, from which 400 respondents were sampled using multistage and proportionate sampling. Primary questionnaire data and secondary sources were used. Data were analysed using frequencies, percentages, means, standard deviations, and multiple linear regression. The findings show that AfCFTA offers important opportunities for Nigeria’s manufacturing sector, with a cumulative mean of 3.37. Key benefits include economic diversification (Mean=3.58), wider African market access (M = 3.54), investment and employment opportunities (Mean=3.43), export growth and improved competitiveness (Mean=3.16 each). Ho1: The regression model was significant (F = 183.187, p = .001), confirming that AfCFTA-related factors significantly predict potential benefits for Nigeria’s manufacturing sector. However, major constraints remain, with a cumulative mean of 3.30. Limited technology, finance and skilled labour (Mean=3.59) ranked highest, followed by trade barriers, high production costs, inadequate transport infrastructure, complex regulations and unreliable energy. Ho2: The model was significant (F = 394.240, p < .001), showing that infrastructure, regulatory barriers, and competitiveness significantly influence AfCFTA benefits. Conclusion: AfCFTA offers Nigeria’s manufacturing sector opportunities to expand markets and exports, but inadequate finance, infrastructure, skills and technology must be addressed to achieve lasting benefits. Recommendations: Government and trade agencies should improve export support through market intelligence, certification, financing and simpler procedures, while manufacturers target African demand and customs agencies digitise processes to reduce delays and costs.
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References
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