Nigeria wants to use the framework of the African Continental Free Trade Area (AFCFTA) to expand its Export market potential to $79 billion. Nigeria is actively involved in the development and implementation of AfCFTA norms, as noted by Dr. Jumoke Oduwole, Minister of Industry, Trade, and Investment, who is spearheading this endeavour. As the leader of the Negotiating Forum tasked with implementing the AfCFTA, Nigeria has matched its regulatory frameworks—which include investment, digital trade, intellectual property rights, and competition policies—with its protocols.
A 15% rise in export capacity, 11 million new employment, and a 15–17% GDP growth are all anticipated economic benefits of the AfCFTA. Nigeria has demonstrated leadership in digital commerce within the AfCFTA, aided by programs like the 3 Million Tech Talent Program, the National Talent Export Program, and the Technology Export and Digital commerce Desk. The ICT sector’s 20% GDP contribution in Q2 2024, the estimated $75 billion in e-commerce expenditure by 2025, and the increase in digital trade Revenue from $5.09 billion in 2019 to $18.3 billion by 2026 are all noteworthy statistics that highlight Nigeria’s growing digital economy.
Stakeholders should work together to eliminate trade barrier.
In order to get ready for intra-African trade, the government has engaged the private sector, submitted tariff and service schedules, and revised trade policies to conform to the AfCFTA. Oduwole mentioned programs like the $1 billion Automobile Industry Facility Fund for industrialisation and highlighted collaborations with organisations like Afreximbank. In order to eliminate trade barriers, boost competitiveness, and expand opportunities for women, young people, and small and medium-sized businesses in regional markets, she urged stakeholders to work together. The African Union launched the historic African Continental Free Trade Area (AfCFTA) with the goal of establishing a unified market for goods and services throughout the continent.
Founded in 2018, it unites 54 of the 55 African Union countries, with a combined GDP of $3.4 trillion and a population of almost 1.3 billion. AfCFTA’s main goals are to remove Tariffs on 97% of the items exchanged between its member nations, allow for unrestricted travel and investment, and support inclusive and sustainable socioeconomic growth. The pact seeks to increase industrialisation, provide jobs, and put Africa in a more competitive position in the world market by promoting intra-African trade. In Nigeria, the Private Sector is essential to tackling these issues and taking advantage of the opportunity presented by the AfCFTA.
Digital trade and information will improve intra-African trade.
Improving production and trade facilitation, including the creation of Digital Infrastructure to facilitate e-commerce and cross-border transactions, is the goal of initiatives like the National Action Committee’s eight-pillar approach. The goals of partnerships between government organisations and private businesses are to increase supply chain effectiveness and create the capacity for competitive production. The Technology Export and Digital Trade Desk, for example, was established to assist with digital trade initiatives and create an atmosphere that encourages the expansion of the private sector within the framework of the AfCFTA. To optimise the advantages of the AfCFTA, stakeholders stress the significance of strategic alliances and legislative changes.
According to Nigeria’s Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, “I call for continued dialogue and capacity building to ensure inclusivity and the successful implementation of the AfCFTA.” She emphasised that in order to lower trade barriers and make Infrastructure investments, private sector executives, legislators, and business owners must work together. Additionally, tech investor Victor Asemota stated that “an AfCFTA framework that focusses on digital trade and information will improve intra-African trade activities tremendously,” highlighting the function of digital platforms in promoting trade.
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Long-term prosperity depends on aligning AfCFTA initiatives with the Sustainable Development Goals (SDGs). The agreement supports SDG 9 (Industry, Innovation, and Infrastructure) by promoting industrial development through diversification and regional value chain development; it also supports SDG 8 (Decent Work and Economic Growth) and SDG 1 (No Poverty) by facilitating the movement of goods and services, which reduces Poverty and creates employment opportunities; its emphasis on harmonising trade laws and lowering tariffs supports SDG 17 (Partnerships for the Goals), which fosters regional cooperation and economic integration.