Since ratifying the African Continental Free Trade Area (AfCFTA) in 2020, Nigeria has viewed the agreement as a transformative opportunity to shift from oil dependency toward production, trade, and continental integration. Five years on, the federal government completed its first implementation review, assessing progress under Phase I Protocols covering Trade in Goods, Trade in Services, and Dispute Settlement. The review reveals a mixed picture: Nigeria has made progress on policy alignment, such as submitting tariff offers covering 90% of intra-African goods and drafting service offers in priority sectors, but non-tariff barriers, regulatory hurdles, and weak dispute settlement mechanisms continue to hinder real gains.
In Trade in Goods, Nigeria’s tariff commitments signal alignment with AfCFTA goals, yet non-tariff barriers—border delays, inconsistent product standards, and limited SME awareness—still constrain intra-African trade. Initiatives like the Unified Customs Management System (B’Odogwu) aim to digitize ports and borders to facilitate movement, but many small exporters remain unable to meet certification or rules-of-origin requirements.
In Trade in Services, Nigeria shows stronger potential. Services constitute over 50% of GDP, driven by ICT, finance, logistics, and creative industries. Digital finance leaders like Flutterwave and Paystack exemplify cross-border success, while the country’s emerging fintech ecosystem and draft service offers highlight Nigeria’s growing role as a digital trade hub. However, regulatory fragmentation and incomplete data protection frameworks limit broader expansion.
Dispute settlement remains the weakest link. Nigeria lacks a domestic mechanism for AfCFTA-related disputes, leaving enforcement dependent on regional capacity-building initiatives like ECOWAS workshops.
Sectoral benefits are uneven. Manufacturing, tech, and logistics show promising continental expansion, while textiles and agriculture remain protectionist, limiting regional integration. Institutional readiness is improving, with the Central Coordination Committee and National Action Committee coordinating efforts, but funding constraints, overlapping mandates, and low private sector awareness slow effective implementation.
Overall, Nigeria’s first AfCFTA review highlights early policy alignment and institutional steps, but underscores the need to translate commitments into tangible trade outcomes, digitize customs, strengthen legal infrastructure, and empower SMEs to drive regional trade.
Potential benefits to African Trade: Nigeria’s AfCFTA implementation has the potential to significantly benefit African trade by boosting intra-African trade through tariff liberalization and service offers, while addressing non-tariff barriers. The growth of digital and service sectors, particularly fintech, positions Nigeria as a continental digital trade hub. Strengthened regional value chains in manufacturing, logistics, and construction can promote industrialization beyond oil, while initiatives like digitized customs (B’Odogwu) and border automation enhance trade facilitation. Building robust dispute settlement mechanisms, harmonizing regulations, and increasing SME engagement are key to enforcing fair trade, and if effectively implemented, Nigeria’s AfCFTA participation could drive job creation, industrial growth, and economic diversification across Africa.