The Nigerian Cabotage Act and the Ideals of the African Continental Free Trade Area: An Unwholesome Alliance?

Abstract

One of the primary goals of the African Continental Free Trade Area (AfCFTA) is to establish a single market for goods and services in order to achieve economic integration in Africa. Experts opine that the AfCFTA can be a game changer for improving intra-African trade and may pave the way to economic diversification and inclusion. To maximize the potential of the AfCFTA, African nations must eliminate or minimize trade and non-trade barriers that can undermine the AfCFTA's true intention. Nigeria is the largest economy in Africa; therefore for the AfCFTA to flourish, Nigeria must implement targeted industrial, structural and policy changes to facilitate the achievement of the AfCFTA's objectives. This article addresses protectionist cabotage as a non-tariff trade hurdle to AfCFTA aims, as well as the need for Nigeria to abolish or liberalize its restrictive regime on domestic cabotage trade. It proposes that Nigeria should take the lead in campaigning for a regional cabotage regime and eliminate its protectionist policy.