Afreximbank Urges Nigeria to Lead $1 Billion Regional Transit Guarantee Scheme for West Africa
African Export-Import Bank (Afreximbank) has called on Nigeria to lead the implementation of an effective regional transit guarantee scheme under the new transit regulation endorsed by the Economic Community of West African States (ECOWAS).
Speaking 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 for Intra-African Trade and Export Development at Afreximbank, emphasized the challenges posed by the current interstate road transit regime in the region. One of the key challenges is the absence of a regional transit guarantee, which leads to an overreliance on physical escorts by customs for goods in transit, increasing costs and creating inefficiencies.
Mrs. Awani stated that Afreximbank is eager to collaborate with Nigeria, ECOWAS, and the ECOWAS Bank of Investment and Development to support the implementation of a regional transit guarantee system that will complement the efforts of national insurers and chambers of commerce, empowering them to enhance their capacities.
She further noted that Afreximbank is currently rolling out a US$1-billion transit guarantee scheme to facilitate the movement of goods across Africa. This initiative addresses persistent transit challenges and responds to customs authorities’ concerns regarding the illegal entry of goods into markets and the potential loss of customs duties and taxes.
