The African Continental Free Trade Area (AfCFTA) Protocols on digital trade and services represent transformative opportunities for Nigeria, offering the potential to enhance its economic standing and foster inclusive growth.
These protocols, crafted to boost trade and economic collaboration across Africa, are particularly advantageous for Nigeria. They aim to bolster the nation’s global competitiveness, create employment opportunities, and accelerate economic development.
During a visit to Nigeria, Wamkele Mene, Secretary-General of the AfCFTA Secretariat, emphasized the critical role Nigeria could play in harnessing these protocols. “This is a moment for Nigeria to lead Africa’s digital transformation and build a prosperous future for the continent,” Mene stated.
Nigeria has already established itself as a hub for digital investment in Africa. A report by the World Economic Forum highlights that Nigeria, alongside Egypt, Kenya, and South Africa, accounts for 92% of all venture capital investments in Africa’s tech sector. Mene credited the nation’s progress to foundational reforms in telecommunications and financial services in the early 2000s, which have propelled exponential growth in its digital economy.
The AfCFTA Protocol on digital trade offers vast opportunities, including access to a unified market of over 1.4 billion people. Nigerian businesses can now export digital products and services—ranging from fintech innovations to digital marketing—across the continent. “Picture Nigerian software developers providing solutions to businesses in South Africa or local fashion designers reaching customers in Kenya. The possibilities are endless,” Mene added.
The Protocol also streamlines cross-border e-commerce by simplifying customs processes and harmonizing regulations. This fosters a more conducive environment for Nigerian businesses to flourish while attracting foreign investments to the country’s digital sector. Projections from ODI Global suggest that with the right policies, Nigeria’s GDP could grow by as much as 12.8%, employment could rise by up to 40.9%, and exports might increase by nearly 60%.
Equally important is the Protocol on trade in services, which reduces trade barriers and facilitates professional mobility across Africa. This creates a $3 trillion market opportunity for Nigerian professionals, enabling easier access to markets and promoting knowledge sharing. For example, Nigerian banks and fintech companies—already recognized for reshaping financial services across Africa—can expand their reach, providing innovative solutions to businesses and individuals continent-wide. Similarly, professionals such as engineers and consultants can tap into broader markets, advancing collaboration and economic growth.
Mene stressed that achieving the vision of the AfCFTA requires collaboration from all stakeholders. “This is more than just a trade agreement; it’s a blueprint for Africa’s interconnected prosperity,” he remarked. Governments must establish stable legal frameworks for digital trade and seamless cross-border services, while private sector players are encouraged to innovate, invest, and expand into new markets.
By capitalizing on these protocols, Nigeria can position itself as a leader in Africa’s economic integration, driving sustainable development and prosperity for future generations. The stage is set; it is now up to businesses, policymakers, and partners to take bold action and leverage this unique opportunity.
