Nigeria AfCFTA strategy gains momentum as reforms, trade pillars and digital push aim to unlock Africa’s $3.4tn market potential
In my last article, I wrote about Biashara Afrika, the premier continental business forum that brings together African heads of state, ministers, policy makers, SMEs, investors, and entrepreneurs to accelerate the African Continental Free Trade Area Agreement (AfCFTA) implementation, and explore intra-African trade collaborations.
It was the summit’s third edition which held in Togo from May 18 – 20.
I explained that AfCFTA is no longer just an idea after the Agreement was signed on March 21, 2018 in Kigali, Rwanda, and commenced commercial trading in January 2021.
Since then, the focus of Africa’s most ambitious economic integration project has been on achieving a single market, reshaping trade across the continent, reducing non-tariff trade barriers, and creating opportunities for investors while remembering Kwame Nkrumah’s enduring message: Africa must unite or perish.
As we strive to unite and speak with one voice, African states must align their domestic strategies with the AfCFTA framework.
When Nigeria signed the Agreement in July 2019 after months of stakeholder consultations, it wasn’t just joining a treaty – it was betting on a $3.4 trillion continental market to diversify away from oil, create jobs for its over 220 million population, and position itself as West Africa’s trade hub.
But signing is the easy part. The real work is implementing Nigeria’s AfCFTA strategy – the blueprint stating how we can turn paper commitments into trucks moving across the borders. “Treaties don’t create jobs, trucks do,” says Dr. Jumoke Oduwole, Minister of Industry,
Trade and Investment, and incoming Chair of AfCFTA Council of Ministers. So, what’s the plan to get the trucks moving?
Since becoming operational in 2021, the Agreement has sought to eliminate tariffs on 90 per cent of goods, liberalise services, and deepen economic cooperation among African nations.
For Nigeria, Africa’s most populous nation, AfCFTA represents far more than a trade agreement.
It is viewed as a strategic pathway towards economic diversification, industrialisation, export expansion and inclusive growth in a country long dependent on crude oil revenues.
Although Nigeria initially approached the Agreement with caution, it signed the AfCFTA in July 2019 and ratified it in November 2020.
To coordinate implementation, former President Muhammadu Buhari established the National Action Committee on AfCFTA (NAC-AfCFTA) in December 2019.
The committee, chaired by the Minister of Industry, Trade and Investment, serves as the central platform for engagement between government agencies, the private sector and other stakeholders.
Under President Bola Ahmed Tinubu, implementation efforts gathered significant momentum in 2025, driven by institutional reforms, policy initiatives and a renewed focus on expanding Nigeria’s footprint in African markets.
Nigeria’s long-term ambition is to become one of Africa’s leading suppliers of value-added goods and services.
The country hopes to capture at least 10 per cent of Africa’s global imports and double export revenues by 2035.
The strategy is aligned with national development objectives and seeks to leverage Nigeria’s comparative advantages, including its population, vast mineral resources, agricultural potential, telecommunications sector, digital economy, creative industries and globally recognised film industry.
In 2022, Nigeria became the 25th African country to validate a National AfCFTA Implementation Strategy with support from the United Nations Economic Commission for Africa (UNECA).
The eight-pillar strategy framework
The first pillar is trade facilitation, which focuses on improving customs processes, border management, transit systems and infrastructure. Efforts in this area include customs automation, inland dry ports and the expansion of major seaports.
The second pillar centres on trade in goods. The objective is to strengthen export competitiveness, diversify away from oil dependence and promote products such as cocoa, petrochemicals and agro-processed goods while protecting sensitive domestic industries.
Trade in services forms the third pillar, with emphasis on liberalising sectors such as finance, transportation, communications, tourism and professional services to attract investment and expand market access.
We won’t beat South Africa making cars, but we can beat them in fintech, music and film.
The fourth pillar addresses investment and industrialisation through support for manufacturing, regional value chains and micro, small and medium-sized enterprises (MSMEs).
Digital trade and intellectual property constitute the fifth pillar. Nigeria has positioned itself as a leading advocate for Africa’s digital trade agenda and has mapped more than 200 digital businesses as part of its preparations. Dr. Oduwole is prioritising digital trade rules and free movement of professionals.
Flutterwave, Paystack, and Nigerian banks already operate across Africa. AfCFTA gives them legal cover to scale without 54 different licenses.
Infrastructure and logistics make up the sixth pillar, recognising that reliable transportation networks, power supply and connectivity remain essential to competitiveness.
The seventh pillar focuses on institutional and policy alignment, including regulatory reforms, standards compliance, rules of origin and trade remedies. If Nigeria captures 20 percent of new AfCFTA trade, that’s millions of jibs, and billions in non-oil forex.
Finally, the eighth pillar emphasises inclusivity and adjustment measures designed to support women, young people and MSMEs while mitigating potential revenue losses arising from tariff reductions.
Together, these pillars are intended to ensure that Nigeria develops competitive regional value chains rather than simply opening its markets to imports.
A breakthrough year
For many observers, 2025 marked a turning point in Nigeria’s AfCFTA implementation journey.
Nigeria became the first state party to complete and publish a five-year implementation review under the framework.
It also gazetted its Provisional Schedule of Tariff Concessions in April, submitted services commitments through ECOWAS in October and ratified the AfCFTA Digital Trade Protocol in November.
A major institutional milestone was the inauguration of the AfCFTA Central Coordination Committee, bringing together more than 20 public and private sector stakeholders to strengthen implementation.
The committee was inaugurated in March 2025 and chaired by Minister Oduwole.
Think of it as Nigeria’s AfCFTA war room. For the first time, Customs, NEXIM Bank, NAFDAC, SON, Immigration, MAN, and others sit at the same table quarterly.
Practical achievements
A subsidised air cargo corridor linking Nigeria to East and Southern African markets was introduced through partnerships involving Uganda Airlines and the United Nations Development Programme (UNDP). Freight rates reportedly fell by between 50 and 75 per cent, improving access for exporters.
The country also developed market intelligence tools covering cosmetics, agro-processed products and textiles across 13 African markets.
Nigeria strengthened its continental influence by securing the hosting rights for several major trade-related events, including the AfCFTA Digital Forum and the Creative Africa Nexus 2026.
From November 5 – 11, 2027, Nigeria will host the 5th edition of the Intra-African Trade Fair (IATF) in Lagos. IATF, fully supported and promoted by Afreximbank in collaboration with the African Union and AfCFTA, is the continent’s leading platform for trade, investment and deal-making at scale.
IATF2025 which held in Algiers, Algeria, featured 2,190 exhibitors, 132 countries represented, and approximately $50 billion in trade and investment deals generated.
In addition, Nigeria has positioned itself as a regional leader in digital trade, identifying priority markets including Egypt, Ghana, Kenya, Rwanda and South Africa.
The potential benefits of AfCFTA for Nigeria
Expanded market access could stimulate industrial production, boost exports and create jobs, particularly for young people and women. Manufacturing, agriculture, technology and services are expected to be among the biggest beneficiaries.
Digital trade, fintech and creative industries such as Nollywood are also viewed as high-growth sectors capable of generating significant export earnings.
Some projections estimate that AfCFTA could contribute GDP gains of around eight per cent while supporting
export diversification and improving living standards.
Challenges
Infrastructure deficits continue to increase production and logistics costs. Persistent power shortages, poor road and rail networks, and port congestion undermine competitiveness.
Exporters also face difficulties related to customs procedures, non-tariff barriers and compliance with rules-of-origin requirements.
There are concerns that reduced tariffs could affect government revenues, while some domestic industries fear being overwhelmed by imports from more competitive African economies.
Broader structural issues such as bureaucracy, policy inconsistency, corruption, limited awareness and capacity constraints also threaten implementation efforts.
Critics argue that without rapid industrialisation, AfCFTA could expose weaknesses in Nigeria’s productive base rather than strengthen it.
The road ahead
Looking at 2026 and beyond, Nigeria’s priorities include deeper engagement with the private sector, state-by-state export product mapping, gazetting its full services schedule and expanding both digital and physical trade corridors.
The country is also expected to play an active role in ongoing Phase II negotiations covering investment, competition policy and intellectual property rights.
Ultimately, the success of Nigeria’s AfCFTA strategy will depend not on policy documents alone but on effective execution.
Sustained investment in infrastructure, access to finance for businesses, workforce development and stronger public-private partnerships will be critical.
Equally important will be ensuring that women, youth and small businesses are not left behind in the integration process.
Nigeria stands at a defining moment. If implementation matches ambition, AfCFTA could become the catalyst for the structural transformation policymakers have pursued for decades, helping to shift the country from dependence on crude oil towards a diversified, export-driven economy.
The strategy is in place; the institutions are emerging, and the opportunities are significant. The challenge now is delivery.
Addendum: The combined GDP of African states is US$3.4 trillion, and not US$3.4 billion, as stated in my last article. It was my error, and it is regretted.
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