Nigeria Targets $79 Billion Export Boost Through AfCFTA
Nigeria is setting its sights on a massive $79 billion export market, leveraging the African Continental Free Trade Area (AfCFTA) framework to expand its trade footprint. The Secretary-General of AfCFTA, Wamkele Mene, reiterated his commitment to breaking down barriers to intra-African trade and investment, but progress has been slow despite promises made at last year’s 13th AfCFTA Council of Ministers meeting, where Nigeria was a key participant.
Speaking at a roundtable in Abuja on Nigeria’s progress with the AfCFTA Protocol, Mene acknowledged that the same challenges continue to hinder the continent’s full trade potential. However, Nigeria’s Minister of Industry, Trade, and Investment, Dr Jumoke Oduwole, is optimistic, stating that the country aims to significantly boost its export capacity. According to her, AfCFTA could drive Nigeria’s GDP growth by 15-17%, create 11 million new jobs across sectors, and expand exports by at least 15%, translating to an additional $79 billion.
Mene highlighted that the AfCFTA Secretariat has developed a robust legal framework to reduce trade obstacles, including specific protocols targeting the challenges faced by women and youth in business. “We’re focused on eliminating barriers to the free movement of people and businesses. I can confidently say we’re ready to remove these constraints,” he said. He also pointed out the adoption of the Women and Youth in Trade and Digital Trade Protocols, which were ratified by African heads of state to promote inclusive growth across the continent.
Interestingly, Nigeria’s first AfCFTA certificate of origin was issued to a woman-owned business, granting it access to new markets beyond Nigeria and West Africa. This reflects Nigeria’s leadership in digital trade within the AfCFTA framework, a point emphasized by Dr Oduwole. She noted that Nigeria has launched the Technology Export and Digital Trade Desk and developed a Digital Economy and E-Governance Bill to streamline electronic communications and digital transactions.
Oduwole also spotlighted initiatives like the National Talent Export Programme and Outsource to Nigeria Initiative, designed to bridge gaps in Nigeria’s digital ecosystem. “Our data speaks volumes: the ICT sector contributes 20% to GDP as of Q2 2024, and e-commerce spending is expected to hit $75 billion by 2025. Digital trade revenues, which were $5.09 billion in 2019, are projected to soar to $18.3 billion by 2026,” she added.
Nigeria has been aligning its trade policies to meet AfCFTA goals, submitting its Tariff and Services Schedule and enhancing private sector engagement to prepare for intra-African trade opportunities. Oduwole stressed the importance of partnerships with stakeholders like Afreximbank, highlighting the launch of a $1 billion Automobile Industry Facility Fund to boost industrialization.
“The elimination of tariffs on 90% of goods traded across the continent is already transforming trade dynamics, stimulating investment, and fostering competitiveness for African businesses,” Oduwole noted. She reiterated Nigeria’s commitment to a continent-wide private sector approach, similar to what has been achieved in the airline industry, and encouraged continued dialogue to ensure AfCFTA’s successful implementation.
Meanwhile, Nigeria’s Minister of Communication, Innovation, and Digital Economy, Dr Bosun Tijani, called for stronger collaborations to implement the digital trade protocols effectively. He emphasized the importance of collective efforts to enhance investment in Nigeria’s and Africa’s broader digital economies.
With these moves, Nigeria is poised to not only boost its exports but also cement its leadership role in shaping Africa’s future under the AfCFTA framework.