Wale Edun Urges Africa’s Regional Self-Reliance Amid Global Trade Tensions

Speaking at the 4th World Customs Organisation (WCO) Donors Conference for the West and Central Africa Region, Nigeria’s Minister of Finance and Coordinating Minister for the Economy, Wale Edun, emphasized that Africa must shift away from dependence on external aid and focus on building robust, regionally anchored institutions.

His remarks come against the backdrop of recent U.S.-imposed reciprocal tariffs averaging 13.83% on exports from eight West and Central African nations, including Nigeria, Cameroon, and Côte d’Ivoire, and a significant reduction in USAID assistance, underscoring the urgency for self-reliant economic strategies.

External Pressures Highlight Need for Regional Integration

Edun pointed to the economic fallout from global developments, noting that the new tariffs inflate export costs, erode trade competitiveness, and hinder diversification efforts across the region.

Compounding these challenges, the sudden withdrawal of USAID programs has strained critical health and education sectors. “These developments make it clear we can no longer rely exclusively on external support,” Edun stated, advocating for accelerated implementation of the African Continental Free Trade Area (AfCFTA), enhanced domestic revenue mobilization, and resilient customs systems to counter these headwinds.

He envisioned a West and Central Africa where trade flows seamlessly, customs administrations drive economic growth, and AfCFTA’s potential is fully realized through modernized, harmonized procedures. “With collaboration between governments, customs agencies, and development partners, this vision is within reach,” he added.

Customs Revenue: A Pillar of Nigeria’s Budget Amid Global Challenges

Edun highlighted the pivotal role of the Nigeria Customs Service (NCS), which historically funds about 15% of the national budget. Despite global economic pressures, the NCS achieved a 90% revenue increase last year, surpassing government targets by 20%.

“This performance reassures us that with the right resources, our customs administrations can exceed expectations,” Edun said, crediting WCO-supported initiatives like Advanced Ruling and Authorised Economic Operators (AEO) for boosting trade facilitation and revenue collection.

However, he acknowledged the growing complexity of customs duties, balancing trade facilitation, border security, and revenue generation amid a challenging global environment.

The AfCFTA, he noted, offers a transformative opportunity for a region of over 450 million people and a combined GDP exceeding $900 billion, yet intra-regional trade lags at just 12%, compared to 60% in Europe and 40% in East Asia.

Untapped Potential and Persistent Challenges

Edun underscored the region’s economic disparities, with eight of the world’s 32 landlocked developing countries facing import costs nearly double those of coastal nations.

Customs processing times averaging 12 days are far above the global best practice of under 24 hours, further highlighting inefficiencies. Modernizing and harmonizing customs could unlock an estimated $50 billion in annual intra-regional trade, create millions of jobs, and reduce poverty, he argued.

Controller General of Customs, Basir Adeniyi, echoed these concerns, identifying technical barriers like inadequate digital infrastructure, limited system interconnectivity, and insufficient capacity for advanced procedures as key impediments. He also cited fragile borders, e-commerce growth, and challenges in implementing AfCFTA’s Rules of Origin as pressing issues requiring targeted interventions.

Nigeria’s Modernization Push and Regional Ambitions

Under President Bola Tinubu’s Renewed Hope agenda, Nigeria is driving economic reforms to enhance trade competitiveness and fiscal resilience. Edun spotlighted initiatives like the National Single Window Project, which aims to digitize trade processes, slash clearance times, and boost regional integration.

Supported by partners like the World Bank through the Accelerating Resource Mobilisation Reforms (ARMOR) Programme, these efforts are strengthening revenue systems and public financial management.

Adeniyi emphasized the conference theme “Partner mobilisation around the priority projects of the WCO’s WCA region” as a call to transform customs operations through technical support and partnerships. “Nigeria’s strides in modernization offer valuable lessons for the region,” he said, citing progress in addressing digital and procedural gaps.

Edun warned that external challenges, from tariffs to aid cuts, threaten collective progress, making sustained investment in customs infrastructure, technology, and capacity building critical. “AfCFTA is an unprecedented chance to elevate intra-African trade and transform our economies,” he said, urging member states to seize this moment.

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