Daily Law Tips (Tip 757) by Onyekachi Umah, Esq., LL.M,
ACIArb(UK)
![image](/2021/03/sjk.jpg")
Introduction:
Imagine Africa as one single market, that promotes intra-Africana
trade, that will be the world largest free trade zone! The African
Continental Free Trade Area (AfCFTA) is Africa’s move to harmonies
its markets for economic integration, across all 55 member States
of the Africa. Since 1st January 2021, Africa has been a single
market. The entire process is running in phases and will require
member states (African countries) to amend their laws and policies
to encourage free movement of persons and goods, as well as affect
dispute resolution, investment, competition policies, and
intellectual property. Among its highlights will be the African
passport, the African currency, the Single African Air Transport
Market and other unified systems.
![image](/2021/01/payne-alex.jpg")
Nigeria signed and ratified the Agreement for the establishment
of the African Continental Free Trade Area (AfCFTA) very late, due
to fears that AFCFTA will not benefit Nigeria. The giant of Africa
was or is still scared that the AFCFTA may turn Nigeria into a
dumping ground and that Nigeria lacks needed trade infrastructure,
security and system to cope with the opportunities and challenges
of the AFCFTA. In a simple parlance, many Nigerians felt or feel
that the AFCFTA may cause an immeasurable rush of Africans into
Nigeria to compete with Nigerians over the resources in Nigeria.
Many feared that Nigeria, like the United Kingdom that left the
European Union, may have quick need to break out of the African
Union’s AFCFTA. Hence, I have received questions from several
Nigerians, who wonder if Nigeria can exit the AFCFTA and how/when
such can be done. So, this work focuses on the timing and procedure
for Nigeria or any member state to exit the AFCFTA.
AFCFTA and the Right to Exit:
Agreement for the establishment of the African Continental Free
Trade Area is a legal framework (combination of agreements,
protocols, annexes and their appendices) covering trade in goods,
trade in services, settlement of dispute, Competition policies,
Investment and Intellectual Property Rights. African countries
interested in the African Continental Free Trade Area (AfCFTA) sign
to the agreement and protocols to become member states. So far, 54
African countries out of 55, have signed and approved the
establishment of the African Continental Free Trade Area (AfCFTA).
The outstanding country is Eritrea and could not sign due to its
war with Ethiopia but is now ready to sign.
Like any other civil agreement, the agreement for the
establishment of the African Continental Free Trade Area allows for
member states to exit the agreement. However, there are deadlines
and procedures for such for such exit. A copy of the Agreement for
the establishment of the African Continental Free Trade Area solves
this; specifically, at its Article 27 on Withdrawal. The agreement
refers to an exit as a withdrawal.
The agreement provides that after five (5) years from the date a
state member signed the agreement, the state member may withdraw
from the agreement. And, the withdrawal is to be made by giving
notice to all other state members through the Depositary (ie, the
Chairperson of the African Union Commission). However, the
withdrawal will not be effective until after two (2) years from the
date that the withdrawing state member delivered its notice to the
depositary. As expected, withdrawal from the agreement does not
affect any pending rights and obligation of the withdrawing member
state before the withdrawal.
In the case of Nigeria, Nigeria signed the Agreement for the
establishment of the African Continental Free Trade Area on 7 July
2019, ratified it on 11 November 2020 and deposited it on 5
December 2020. By the constitution of Nigeria, foreign agreements
signed by government are not effective until there are ratified by
the legislature. So, since the AFCFTA was ratified by Nigeria on 11
November 2020, it is deemed to have come into force in Nigeria on
the date of ratification (11 November 2020). So, Nigeria cannot
exit the agreement until after 5 years from 11 November 2020 (ie,
from 11 November 2025). It is from 11 November 2025 that Nigeria
can send its Notice of Withdrawal but the withdrawal will not be
effective until after 2 years (ie, November 2027, assuming Nigeria
submits the notice in November 2025).
Conclusion:
No country can survive without trade and relationships with other
countries. Like the Igbo adages says, “Ayoku mamiri, Ogba Ufufu”
(when people urinate together in same bowl, it foams better);
countries do better together. This is the simple basis for a single
African market for all Africans. Nigeria must not miss the promises
of AFCFTA, with the projections that AFCFTA will cover a market of
1.2 billion people and a gross domestic product (GDP) of $22.5
trillion, across all 55 member States of the African Union.
Although, Nigeria lacks basic data, basic infrastructure,
reliable economic plan, technology-industrial hubs and security to
drive needed export of finished goods and not raw materials alone,
the world and Africans cannot be delayed. Nigeria has to catch up.
AFCFTA is good but Nigeria has to be ready and good to benefit from
its goodies. However, where Nigeria or any member state of the
AFCFTA feels that its national security, public health or public
order is threatened, it can always step aside from the AFCFTA. Like
we say in Nigeria, “e no be by force” (it is not by force).
My authorities, are:
1. Sections 1, 2, 3, 4, 5, 6 and 12 of the Constitution of the
Federal Republic of Nigeria, 1999.
2. Articles 2, 6, 7, 8, 13 and 27 of the Agreement establishing the
African Continental Free Trade Area.
3. African Trade Policy Centre “African Continental Free Trade
Area; Questions & Answers” (African Union) <https://au.int/sites/default/files/documents/36085-doc-qa_cfta_en_rev15march.pdf[1]> accessed 15 March
2021.
4. Africa Kiiza and Alex Nkosi, “Does the African Continental Free
Trade Area (AfCTA) uphold Worker’s rights?” (Beyond Potential, 17
May 20202) <https://www.beyondpotential.org/post/does-the-african-continental-free-trade-area-afcta-uphold-worker-s-rights[2]> accessed 15 March
2021.
5. Martyn Davies and Borge Brende, “Connecting Countries and Cities
for Regional Value Chain Integration: Operationalizing the AfCFTA”
(World Economic Forum, 26 January 2021) <http://www3.weforum.org/docs/WEF_Regional_Value_Chain_Integration_Automotive_Case_Study_2021.pdf[3]> accessed 15 March
2021.
6. Andrew Omosebi, “AfCFTA: The state of the manufacturing sector
in Nigeria and its ability to capitalize on open borders” (Naira
Metrics, 4 January 2021) <https://nairametrics.com/2021/01/04/afcfta-the-state-of-the-manufacturing-sector-in-nigeria-and-its-ability-to-capitalize-on-open-borders/[4]> accessed 15 March
2021
7. “The African Continental Free Trade Area: A Tralac Guide”
(Tralac, August 2020) < https://www.tralac.org/documents/resources/booklets/4062-afcfta-a-tralac-guide-7th-edition-august-2020/file.html[5]> accessed 15 March
2021
8. Hippolyte Fofack, “A Competitive Africa; Economic integration
could make the continent a global player” (International Monetary
Fund, 2018) <https://www.imf.org/external/pubs/ft/fandd/2018/12/afcfta-economic-integration-in-africa-fofack.htm[6]> accessed 15 March
2021
9. Oge Udegbunam and Ronald Adamolekun, “AfCFTA: What Nigerian
businesses must do to export to African countries” (PremiumTimes,
17 January 2021) <https://www.premiumtimesng.com/news/top-news/436908-afcfta-what-nigerian-businesses-must-do-to-export-to-african-countries-official.html[7]> accessed 15 March
2021
10. KOUASSI YEBOUA AND REQUIER WAIT, “Free trade deal could boost
African manufacturing” (Issafrica, 8 December 2020) <https://issafrica.org/iss-today/free-trade-deal-could-boost-african-manufacturing[8]> accessed 15 March
2021
11.
https://au.int/en/videos/20210101/afcfta-start-trading-ceremony-webinar
Sabi Law Projects:
#SabiLaw
#DailyLawTips
#SabiBusinessLaw
#SabiElectionLaws
#SabiHumanRights
#SabiLawOnBeatFm
#SabiLawLectureSeries
#CriminalJusticeMonday
#SabiLawVideoChallenge
Speak with the writer, ask questions or make inquiries on this
topic or any other via onyekachi.umah@gmail.com,
info@LearnNigerianLaws.com or +2348037665878 (whatsapp).
To receive free Daily Law Tips, join our free WhatsApp group via
https://chat.whatsapp.com/DgFYxiYw6Mm8MdvOl3N1yn or Telegram group,
via the below link: https://t.me/LearnNigerianLaws
To keep up to date on all our free legal awareness projects of Sabi
Law Foundation, follow us via
Facebook Page:@LearnNigerianLaws,
Instagram: @LearnNigerianLaws, Twitter: @LearnNigeriaLaw and
YouTube: Learn Nigerian Laws
Please share this publication for free till it gets to those
that need it most. Save a Nigerian today! NOTE: Sharing, modifying
or publishing this publication without giving credit to the author
or Sabi Law Foundation is a criminal breach of copyright and will
be prosecuted. This publication is the writer’s view not a legal
advice and does not create any form of relationship. You may reach
the writer for more information.
This publication is powered by www.LearnNigerianLaws.com {A Free
Law Awareness Program of Sabi Law Foundation, supported by the law
firm of Bezaleel Chambers International (BCI).} Sabi Law Foundation
is a Not-For-Profit and Non-Governmental Legal Awareness
Organization based in Nigeria.
Daily Law Tips (Tip 757) by Onyekachi Umah, Esq., LL.M,
ACIArb(UK)
Introduction:
Imagine Africa as one single market, that promotes intra-Africana
trade, that will be the world largest free trade zone! The African
Continental Free Trade Area (AfCFTA) is Africa’s move to harmonies
its markets for economic integration, across all 55 member States
of the Africa. Since 1st January 2021, Africa has been a single
market. The entire process is running in phases and will require
member states (African countries) to amend their laws and policies
to encourage free movement of persons and goods, as well as affect
dispute resolution, investment, competition policies, and
intellectual property. Among its highlights will be the African
passport, the African currency, the Single African Air Transport
Market and other unified systems.
Nigeria signed and ratified the Agreement for the establishment
of the African Continental Free Trade Area (AfCFTA) very late, due
to fears that AFCFTA will not benefit Nigeria. The giant of Africa
was or is still scared that the AFCFTA may turn Nigeria into a
dumping ground and that Nigeria lacks needed trade infrastructure,
security and system to cope with the opportunities and challenges
of the AFCFTA. In a simple parlance, many Nigerians felt or feel
that the AFCFTA may cause an immeasurable rush of Africans into
Nigeria to compete with Nigerians over the resources in Nigeria.
Many feared that Nigeria, like the United Kingdom that left the
European Union, may have quick need to break out of the African
Union’s AFCFTA. Hence, I have received questions from several
Nigerians, who wonder if Nigeria can exit the AFCFTA and how/when
such can be done. So, this work focuses on the timing and procedure
for Nigeria or any member state to exit the AFCFTA.
AFCFTA and the Right to Exit:
Agreement for the establishment of the African Continental Free
Trade Area is a legal framework (combination of agreements,
protocols, annexes and their appendices) covering trade in goods,
trade in services, settlement of dispute, Competition policies,
Investment and Intellectual Property Rights. African countries
interested in the African Continental Free Trade Area (AfCFTA) sign
to the agreement and protocols to become member states. So far, 54
African countries out of 55, have signed and approved the
establishment of the African Continental Free Trade Area (AfCFTA).
The outstanding country is Eritrea and could not sign due to its
war with Ethiopia but is now ready to sign.
Like any other civil agreement, the agreement for the
establishment of the African Continental Free Trade Area allows for
member states to exit the agreement. However, there are deadlines
and procedures for such for such exit. A copy of the Agreement for
the establishment of the African Continental Free Trade Area solves
this; specifically, at its Article 27 on Withdrawal. The agreement
refers to an exit as a withdrawal.
The agreement provides that after five (5) years from the date a
state member signed the agreement, the state member may withdraw
from the agreement. And, the withdrawal is to be made by giving
notice to all other state members through the Depositary (ie, the
Chairperson of the African Union Commission). However, the
withdrawal will not be effective until after two (2) years from the
date that the withdrawing state member delivered its notice to the
depositary. As expected, withdrawal from the agreement does not
affect any pending rights and obligation of the withdrawing member
state before the withdrawal.
In the case of Nigeria, Nigeria signed the Agreement for the
establishment of the African Continental Free Trade Area on 7 July
2019, ratified it on 11 November 2020 and deposited it on 5
December 2020. By the constitution of Nigeria, foreign agreements
signed by government are not effective until there are ratified by
the legislature. So, since the AFCFTA was ratified by Nigeria on 11
November 2020, it is deemed to have come into force in Nigeria on
the date of ratification (11 November 2020). So, Nigeria cannot
exit the agreement until after 5 years from 11 November 2020 (ie,
from 11 November 2025). It is from 11 November 2025 that Nigeria
can send its Notice of Withdrawal but the withdrawal will not be
effective until after 2 years (ie, November 2027, assuming Nigeria
submits the notice in November 2025).
Conclusion:
No country can survive without trade and relationships with other
countries. Like the Igbo adages says, “Ayoku mamiri, Ogba Ufufu”
(when people urinate together in same bowl, it foams better);
countries do better together. This is the simple basis for a single
African market for all Africans. Nigeria must not miss the promises
of AFCFTA, with the projections that AFCFTA will cover a market of
1.2 billion people and a gross domestic product (GDP) of $22.5
trillion, across all 55 member States of the African Union.
Although, Nigeria lacks basic data, basic infrastructure,
reliable economic plan, technology-industrial hubs and security to
drive needed export of finished goods and not raw materials alone,
the world and Africans cannot be delayed. Nigeria has to catch up.
AFCFTA is good but Nigeria has to be ready and good to benefit from
its goodies. However, where Nigeria or any member state of the
AFCFTA feels that its national security, public health or public
order is threatened, it can always step aside from the AFCFTA. Like
we say in Nigeria, “e no be by force” (it is not by force).
My authorities, are:
1. Sections 1, 2, 3, 4, 5, 6 and 12 of the Constitution of the
Federal Republic of Nigeria, 1999.
2. Articles 2, 6, 7, 8, 13 and 27 of the Agreement establishing the
African Continental Free Trade Area.
3. African Trade Policy Centre “African Continental Free Trade
Area; Questions & Answers” (African Union) <https://au.int/sites/default/files/documents/36085-doc-qa_cfta_en_rev15march.pdf[1]> accessed 15 March
2021.
4. Africa Kiiza and Alex Nkosi, “Does the African Continental Free
Trade Area (AfCTA) uphold Worker’s rights?” (Beyond Potential, 17
May 20202) <https://www.beyondpotential.org/post/does-the-african-continental-free-trade-area-afcta-uphold-worker-s-rights[2]> accessed 15 March
2021.
5. Martyn Davies and Borge Brende, “Connecting Countries and Cities
for Regional Value Chain Integration: Operationalizing the AfCFTA”
(World Economic Forum, 26 January 2021) <http://www3.weforum.org/docs/WEF_Regional_Value_Chain_Integration_Automotive_Case_Study_2021.pdf[3]> accessed 15 March
2021.
6. Andrew Omosebi, “AfCFTA: The state of the manufacturing sector
in Nigeria and its ability to capitalize on open borders” (Naira
Metrics, 4 January 2021) <https://nairametrics.com/2021/01/04/afcfta-the-state-of-the-manufacturing-sector-in-nigeria-and-its-ability-to-capitalize-on-open-borders/[4]> accessed 15 March
2021
7. “The African Continental Free Trade Area: A Tralac Guide”
(Tralac, August 2020) < https://www.tralac.org/documents/resources/booklets/4062-afcfta-a-tralac-guide-7th-edition-august-2020/file.html[5]> accessed 15 March
2021
8. Hippolyte Fofack, “A Competitive Africa; Economic integration
could make the continent a global player” (International Monetary
Fund, 2018) <https://www.imf.org/external/pubs/ft/fandd/2018/12/afcfta-economic-integration-in-africa-fofack.htm[6]> accessed 15 March
2021
9. Oge Udegbunam and Ronald Adamolekun, “AfCFTA: What Nigerian
businesses must do to export to African countries” (PremiumTimes,
17 January 2021) <https://www.premiumtimesng.com/news/top-news/436908-afcfta-what-nigerian-businesses-must-do-to-export-to-african-countries-official.html[7]> accessed 15 March
2021
10. KOUASSI YEBOUA AND REQUIER WAIT, “Free trade deal could boost
African manufacturing” (Issafrica, 8 December 2020) <https://issafrica.org/iss-today/free-trade-deal-could-boost-african-manufacturing[8]> accessed 15 March
2021
11.
https://au.int/en/videos/20210101/afcfta-start-trading-ceremony-webinar
Sabi Law Projects:
#SabiLaw
#DailyLawTips
#SabiBusinessLaw
#SabiElectionLaws
#SabiHumanRights
#SabiLawOnBeatFm
#SabiLawLectureSeries
#CriminalJusticeMonday
#SabiLawVideoChallenge
Speak with the writer, ask questions or make inquiries on this
topic or any other via onyekachi.umah@gmail.com,
info@LearnNigerianLaws.com or +2348037665878 (whatsapp).
To receive free Daily Law Tips, join our free WhatsApp group via
https://chat.whatsapp.com/DgFYxiYw6Mm8MdvOl3N1yn or Telegram group,
via the below link: https://t.me/LearnNigerianLaws
To keep up to date on all our free legal awareness projects of Sabi
Law Foundation, follow us via
Facebook Page:@LearnNigerianLaws,
Instagram: @LearnNigerianLaws, Twitter: @LearnNigeriaLaw and
YouTube: Learn Nigerian Laws
Please share this publication for free till it gets to those
that need it most. Save a Nigerian today! NOTE: Sharing, modifying
or publishing this publication without giving credit to the author
or Sabi Law Foundation is a criminal breach of copyright and will
be prosecuted. This publication is the writer’s view not a legal
advice and does not create any form of relationship. You may reach
the writer for more information.
This publication is powered by www.LearnNigerianLaws.com {A Free
Law Awareness Program of Sabi Law Foundation, supported by the law
firm of Bezaleel Chambers International (BCI).} Sabi Law Foundation
is a Not-For-Profit and Non-Governmental Legal Awareness
Organization based in Nigeria.