POTENTIAL OF TRADE FACILITATION AS A KEY FACTOR IN ACHIEVING SUSTAINABLE NIGERIA'S INDUSTRIAL TRANSFORMATION WITHIN THE AFRICAN CONTINENTAL FREE TRADE AREA (AFCFTA)

Abstract

Abstract Nigeria's improved business environment could lead to it becoming a competitive producer, enhancing the benefits and competitiveness for both local and foreign businesses. This article explores the impact of trade facilitation on Nigeria's economic transformation, focusing on customs environment and manufacturing business performance, considering the potential of the Africa Continental Free Trade Area. The study used a questionnaire survey and annual reports to gather primary and secondary data from 43 manufacturing businesses listed on the Nigerian Stock Exchange (NSE) list for over 10 years and regularly importing goods through Lagos Seaports. Results showed a significant relationship between business performance and customs clearance time. The study reveals a significant correlation between business performance and customs clearance time, affecting turnover, cost of sales, and profit in manufacturing enterprises. The adjusted R squared analysis indicates that customs clearance time significantly influences turnover, cost of production (sales), and profit variations by 79.9%, 77.04%, and 77.48%, respectively in the long-run. Improving the customs environment could enhance Nigeria's competitiveness in the Africa Continental Free Trade Area.