Nigeria has become the latest country to ratify the World Trade Organization's (WTO) Trade Facilitation Agreement (TFA), meaning just three more ratifications are required before it comes into force.

The first multilateral trade agreement in the WTO's 20-year history will reduce trade barriers and eliminate border transaction costs for companies around the world, and will take effect when ratified by two-thirds of the WTO's 164 member countries. Nigeria has become the 107th member to do so.

"Nigeria's ratification of the Trade Facilitation Agreement is a reflection of our commitment to the WTO and a rules-based economy," said Nigeria's Minister for Industry, Trade and Investment, Okechukwu Enelamah. "Nigeria would like to see a strengthened WTO that reflects the development principles of developing countries like Nigeria and we praise the effectiveness of DG Azevêdo in this regard."

Concluded at the WTO's 2013 Bali Ministerial Conference, the TFA contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues. It further contains provisions for technical assistance and capacity building in this area.

According to the WTO's flagship World Trade Report published in October 2015, implementation of the TFA has the potential to increase global merchandise exports by up to US$1 trillion per annum. The report also found that developing countries will benefit significantly from the TFA, capturing more than half of the available gains.