Nigeria urged to champion regional transit guarantee scheme in Economic Community of West African States (ECOWAS)
African Export-Import Bank (Afreximbank) (www.Afreximbank.com) has urged Nigeria to champion the implementation of an effective regional transit guarantee scheme under the new transit regulation endorsed by the Economic Community of West African States (ECOWAS).
Delivering a keynote address at the inaugural session of the Customs Partnership for African Cooperation in Trade (Customs PACT) held in Abuja, Nigeria, from 17 to 19 November, Mrs. Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development, Afreximbank, highlighted the challenges imposed by the current interstate road transit regime in the region. Key among them is the lack of a regional transit guarantee, leading to overdependence on physical escort of goods in transit by customs which drives up costs and results in inefficiencies.
Mrs. Awani said that Afreximbank was keen on working with Nigeria, ECOWAS and the ECOWAS Bank of Investment and Development to support the region to implement an effective regional transit guarantee system, which would complement the efforts of national insurers and chambers of commerce, and empower them to increase their capacity.
She said the Bank is currently implementing a US$1-billion transit guarantee scheme to facilitate the movement of goods across Africa by addressing persistent transit challenges and responding to the concerns of customs authorities about the risk of goods entering markets illegally, and about potential loss of customs duties and taxes.
Mrs. Awani explained that, under the Afreximbank African Collaborative Transit Guarantee Scheme, a single transit bond is issued to secure customs duties, significantly reducing bureaucratic hurdles and facilitating smoother cross-border trade, with the elimination of the need for multiple transit bonds enhancing trade efficiency and substantially lowering business costs.
She added that the scheme was already being implemented in the Common Market for Eastern and Southern Africa and the East African Community (COMESA) under a US$300-million facility with ZEP RE (PTA Reinsurance Company), a reinsurer based in Nairobi, Kenya. Mrs Awani highlighted that the scheme would save at least US$300 million annually in transit costs when fully implemented at a continental level.
She said that Afreximbank is open to working with Nigeria and other African countries to establish one-stop-border-posts and related infrastructure, building on its experience at the Beitbridge border post between South Africa and Zimbabwe. The modernisation of that border post, implemented with support of Afreximbank and other partners, resulted in clearance time at the post dropping from 3-5 days to a maximum of 3 – 5 hours.
Afreximbank, Mrs. Awani told delegates present, supported the event out of the realisation that unresolved soft infrastructure issues, particularly in customs and trade facilitation, would impede free movement of goods under the African Continental Free Trade Area (AfCFTA) if not addressed. According to Africa Union Development Agency (AUDA-NEPAD), she explained, 75 per cent of delays in the movement of goods is due to trade facilitation issues with just 25 per cent attributed to infrastructure gaps.
She also highlighted the challenge posed by lack of harmonised systems and their interoperability and by national customs systems that do not communicate with each other.
H.E. Bola Ahmed Tinubu, President of Nigeria, sent a message of endorsement to the Customs PACT, saying that it aligned perfectly with the Nigerian government’s commitment to fostering regional integration, enhancing trade facilitation and positioning Nigeria and Africa as competitive players in the global economy.
The Customs PACT roundtable was organized to revolutionise customs and business cooperation, promote intra-African trade and position Africa as a formidable force in global trade. It was organised by the Nigeria Customs Service, in collaboration with Afreximbank, the AfCFTA Secretariat and supported by the World Customs Organization.
Distributed by APO Group on behalf of Afreximbank.
Media Contact:
Vincent Musumba
Communications and Events Manager (Media Relations)
Email: press@afreximbank.com
Follow Afreximbank on:
X: https://apo-opa.co/48wNktV
Facebook: https://apo-opa.co/49Dh21A#
LinkedIn: https://apo-opa.co/4p9Ackc
Instagram: https://apo-opa.co/3LYmsKD
About Afreximbank:
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra- and extra-African trade. For over 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialisation and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank has set up a US$10 billion Adjustment Fund to support countries effectively participating in the AfCFTA. At the end of December 2024, Afreximbank’s total assets and contingencies stood at over US$40.1 billion, and its shareholder funds amounted to US$7.2 billion. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa2), China Chengxin International Credit Rating Co., Ltd (CCXI) (AAA), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB-). Afreximbank has evolved into a group entity comprising the Bank, its equity impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure (together, “the Group”). The Bank is headquartered in Cairo, Egypt.
For more information, visit: www.Afreximbank.com
