By Ayomide Otitoju
Afreximbank has called on Nigeria to champion the implementation of an effective regional transit guarantee system under the new transit regulation endorsed by the Economic Community of West African States (ECOWAS).
Delivering the keynote address at the inaugural Customs Partnership for African Cooperation in Trade (Customs PACT) held in Abuja from 17 to 19 November, Mrs. Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development at Afreximbank, highlighted challenges facing interstate road transit in West Africa. Chief among them is the absence of a regional transit guarantee, which forces reliance on physical escort of goods by customs, driving up costs and creating inefficiencies.
Mrs. Awani said Afreximbank is ready to work with Nigeria, ECOWAS, and the ECOWAS Bank of Investment and Development to support the rollout of a regional transit guarantee system. The initiative would complement national insurers and chambers of commerce, enabling them to expand capacity and facilitate smoother trade.
She noted that Afreximbank is already implementing a US$1-billion transit guarantee scheme across Africa to address transit challenges and alleviate customs concerns over risks of goods entering markets illegally or potential revenue losses. Under the African Collaborative Transit Guarantee Scheme, a single transit bond secures customs duties, reducing bureaucracy and eliminating the need for multiple bonds, thereby lowering costs for businesses.
The scheme is already operational in COMESA and the East African Community through a US$300-million facility in partnership with ZEP-RE, a Nairobi-based reinsurer. Once implemented continent-wide, it is projected to save at least US$300 million annually in transit costs.
Mrs. Awani also highlighted Afreximbank’s role in developing one-stop-border-posts, citing the Beitbridge border between South Africa and Zimbabwe. Modernisation at Beitbridge, supported by Afreximbank, cut clearance times from 3–5 days to 3–5 hours. She encouraged Nigeria and other African nations to adopt similar models to improve trade facilitation.
She emphasized that unresolved “soft infrastructure” issues—particularly customs procedures—pose the greatest barrier to free movement of goods under the African Continental Free Trade Area (AfCFTA). According to AUDA-NEPAD, 75% of delays in goods movement are linked to trade facilitation rather than physical infrastructure. Interoperability issues between national customs systems also hinder efficiency.
President Bola Ahmed Tinubu endorsed the Customs PACT, noting it aligns with Nigeria’s commitment to regional integration, enhanced trade facilitation, and positioning Africa as a competitive player in global trade.
The roundtable, organized by the Nigeria Customs Service in collaboration with Afreximbank, the AfCFTA Secretariat, and supported by the World Customs Organization, aims to revolutionize customs cooperation, promote intra-African trade, and strengthen Africa’s global trade presence.
