Nigeria has renewed its push to deepen intra-African trade under the African Continental Free Trade Area (AfCFTA) framework, as policymakers intensify efforts to unlock the continent’s vast but underutilised internal market.
The initiative comes amid growing recognition that Africa’s economic transformation will depend heavily on improving trade between African countries, strengthening regional value chains, and reducing reliance on external markets.
Current estimates suggest that only about 16 per cent of total African trade occurs within the continent, a figure widely viewed as too low for a region with over 1.4 billion people and rapidly expanding consumer markets.
Speaking at recent policy engagements in Lagos, Nigerian officials and trade stakeholders emphasised the need to accelerate implementation of AfCFTA protocols, particularly in areas such as tariff reduction, customs harmonisation, and trade facilitation.
A key focus of Nigeria’s strategy is the expansion of export diversification, especially in non-oil sectors such as agriculture, manufacturing, creative industries, and digital services. Policymakers argue that reducing dependence on crude oil exports is essential for long-term economic resilience.
Digital trade has also emerged as a major pillar of the renewed strategy. With the rapid growth of fintech, e-commerce, and cross-border digital services, Nigeria is positioning itself to play a leading role in Africa’s emerging digital economy.
Government officials highlighted plans to improve digital trade mapping systems, strengthen regulatory coordination, and support small and medium-sized enterprises (SMEs) in accessing regional markets.
SMEs are expected to play a critical role in driving intra-African trade growth, given their dominance in employment creation and local production networks. However, many small businesses continue to face challenges related to financing, logistics, and cross-border regulatory complexity.
The AfCFTA agreement, which officially became operational in recent years, is designed to create a single continental market for goods and services, gradually eliminating trade barriers and fostering economic integration across African states.
Nigeria’s renewed focus on AfCFTA implementation reflects a broader policy shift toward regional integration as a pathway to economic growth, particularly in the face of global trade uncertainties and shifting geopolitical alliances.
Experts say that while progress has been made in policy frameworks, actual trade flows remain below expectations due to infrastructure gaps, inefficient border processes, and limited industrial competitiveness in some sectors.
Logistics and transport costs remain a significant barrier to intra-African trade, with many businesses finding it cheaper and easier to trade with partners outside the continent than within it.
To address these challenges, Nigeria is advocating for improved port efficiency, better road and rail connectivity, and streamlined customs procedures across West African and continental trade corridors.
Financial sector stakeholders are also being engaged to support trade financing mechanisms that can help SMEs scale operations across borders. Access to credit and risk mitigation tools remains a key constraint for many small exporters.
Despite these challenges, optimism remains high that AfCFTA could significantly transform Africa’s economic landscape if fully implemented. Analysts project that intra-African trade could rise substantially over the next decade if structural bottlenecks are addressed.
Nigeria, as Africa’s largest economy, is expected to play a central role in shaping the direction and success of the agreement, particularly through its influence in regional blocs and trade policy negotiations.
As implementation continues, attention is shifting toward practical outcomes, including increased export volumes, improved manufacturing capacity, and stronger integration of African supply chains.
For now, Nigeria’s renewed commitment signals a strategic effort to position itself at the centre of Africa’s evolving trade architecture.
