Business
AfCFTA: ECA Tasks Member Countries On Free Movement Protocol
Coordinator, African Trade Policy Centre (ATPC), Economic Commission for Africa (ECA), Mr David Luke, has charged member countries on the significance of the free movement protocol.
Luke gave the charge to an International Organisation for Migration (IOM) side event on the sidelines of the commission’s ongoing 53rd session of its Conference of Ministers in Addis Ababa on Saturday.
He said that the protocol would be critical to securing gains from the African Continental Free Trade Area (AfCFTA).
The event was tagged “Digitalising Migration Response to harness Africa’s Economic Development and Demographic Dividend in the Covid-19 Era.”
The ECA representative said the four basic freedoms which made up the African continental and regional integration agenda were in the movement of people, capital, goods and services.
He recalled that the Abuja Treaty establishing the African economic community, adopted by the defunct Organisation for African Unity in 1991, envisioned the “free movement of people and the rights of residence and establishment”.
“This represents the fifth phase of the Abuja Treaty which is expected to be realised by 2023.
“The Protocol to the Treaty on the Establishment of the African Economic Community relating to Free Movement of Persons, Right of Residence and Right of Establishment was adopted in January 2018 together with a comprehensive implementation roadmap.
“Yet there has been a slow pace of signature and ratification of the protocol,” he said.
According to the ECA, the protocol must be ratified by 15 member states to enter into force and 32 have signed but only Rwanda, has ratified it.
Luke said the concept of free movement of persons was often poorly understood.
“We must do better than this. Freer movement cannot depend only on the AfCFTA Protocol on Services that allows for movement in relation to investment and service delivery.
“True freedom of movement in Africa would instead allow African citizens to move to, live in, work, or provide a service or a business in another country on the continent, under the same or similar conditions as a citizen of that country.”
He added that there might be a need to redesign the freedom of movement protocol to respond to concerns raised by policy makers.
He noted that this was to ensure that Africans could benefit fully from the liberalised market being created by the AfCFTA.
“Regional Economic Communities (RECs), which have faced their own challenges with ratification and implementation of Free Movement Protocols, have a role to play in promoting increased understanding of the free movement concept.
“It is the free movement of people which will boost intra-African trade under the AfCFTA, and enable African countries to proactively and swiftly respond to the twin green and digital transitions we are faced with in the 2020s,” Luke said.
He stressed that Africa could not afford to not build “seamless borders for tomorrow’s Africa,” and further proposed that the ATPC and IOM organise a series of awareness raising events.
He said the events would be organised with the Rwandan Government as a principal partner.
For his part, Mr Jean-Denis Gabikini, Acting Director, Directorate of Economic Development Integration and Trade, African Union Commission, said various challenges in the continent has resulted into increased migration by youths.
“At least 60 per cent of Africa’s population is aged below 24 years and its active contribution to economic growth, which is reflected by increased incomes and development, is not there.
“Instead of making the most of this dividend we are unable to offer jobs to our youth, forcing them to seek livelihoods elsewhere,” Gabikini said.
The 53rd session of the ECA Conference of African Ministers of Finance, Planning and Economic Development is tagged “Africa’s Sustainable Industrialisation and Diversification in the Digital Era in the Context of COVID-19″.
It is held onsite and online and would end on March 23.
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
-
News4 days ago
Decentralizing Pipeline Surveillance Poses Greater Dangers To Niger Delta …. Group Warns
-
Politics5 days agoAPC Resumes Electronic Membership Registration Nationwide
-
Rivers4 days agoCourt Rules Out Interim Administration In Jumbo House, Bonny
-
Business4 days ago
33 Banks Raise N4.65tn As Recapitalisation Ends
-
Politics4 days agoAlleged Coup: Protests Rock N’Assembly As Detained Officers’ Children, Wives Demand Justice
-
Nation4 days agoNile University Hosts ICA Nigeria First National Confab On Global Communication
-
Sports4 days ago
Lewandowski Leads Top Stars Missing From W/Cup Roll Call
-
Sports4 days agoPara Games: Team Rivers Wins 53 Medals On Day 5 … Director Praise Athletes