Nigeria’s intra-African trade hits $9.02 billion under AfCFTA

Nigeria’s intra-African trade volume reached $9.02 billion as local exporters expand their footprint across continental markets under the African Continental Free Trade Area framework.

Nigeria’s intra-African trade volume reached $9.02 billion as local exporters expand their footprint across continental markets under the African Continental Free Trade Area (AfCFTA) framework. Financial analysts note that streamlined cross-border trade policies are driving increased demand for Nigerian manufactured goods and agricultural exports.

The $9.02 billion figure represents a significant milestone for Nigeria’s trade diversification efforts. The country has long relied on oil exports, but the AfCFTA offers an opportunity to expand non-oil exports to other African countries. The growth in intra-African trade is a sign that Nigerian businesses are taking advantage of the trade agreement.

However, the $9.02 billion figure must be seen in context. Nigeria’s total trade volume is much larger, and intra-African trade still represents a small fraction of that total. The AfCFTA is still in its early stages, and it will take years for the agreement to reach its full potential.

This echoes the 2010s trade diversification efforts, which also sought to expand non-oil exports. The mechanism then was different, but the result was the same: a government trying to diversify the economy away from oil.

The winners: Nigerian exporters, who are finding new markets; and the Nigerian economy, which gains from trade diversification. The losers: the Nigerian government, which must continue to support the AfCFTA; and the Nigerian public, who have yet to feel the benefits of the trade agreement.

Bottom Line: Nigeria’s intra-African trade has reached $9.02 billion. AfCFTA is working. The question is whether the trade will continue to grow or stall.