How Nigerians Can Use AfCFTA To Scale Their Businesses

Economists and industry stakeholders agree that Nigeria and its citizens possess strong competitive advantages under the African Continental Free Trade Area (AfCFTA). However, they warn that these gains could slip away if the country is outpaced by better prepared African economies.

To avert this, they urged businesses and citizens to move quickly to position themselves for emerging opportunities.

Nigeria’s large population, diverse resource base, expanding technology sector and strong creative industries are cited as key assets that could enable the country to dominate regional trade once AfCFTA becomes fully operational.

The agreement aims to create a single African market of 1.3 billion people with reduced tariffs and easier movement of goods and services across borders.

Nigeria is widely believed to have strong export prospects in products such as cocoa butter, sesame seeds, cashew kernels, palm kernel oil, fertilizer, petrochemicals, leather shoes and accessories, garments, cement, packaged foods like instant noodles, shea butter cosmetics, and digital services, which are increasingly sought across African markets.

Economist and trade analyst, Dr. Kemi Asade said, Nigeria’s demographic strength remains its most valuable advantage. “The size of our market and the entrepreneurial capacity of Nigerians place us in a strong position. But other African countries are moving faster. Without urgent preparation, Nigeria could find itself playing catch-up,” she said.

Small and medium-sized businesses, seen as the backbone of the country’s export potential, are already expressing interest in expanding into new African markets. At the Lagos International Trade Fair, shea-based cosmetics producer, Chinedu Onuoha said, AfCFTA could help him reach long-desired customers across the continent. “We already have interest from West African buyers, but logistics and tariffs have been obstacles. If AfCFTA simplifies movement, it will open real opportunities for people like us,” he stated.

Experts, however, caution that Nigerians must take deliberate steps to meet export requirements. Export consultant, Monsurat Adebiyi said, knowledge gaps remain a major barrier. According to her, “Businesses need to understand packaging, certification and compliance standards. AfCFTA does not remove quality requirements. Producers who prepare now will benefit first.”

In Kano, leather goods manufacturer, Abdulmalik Hassan said, most artisans still lack practical guidance. “We hear about AfCFTA, but we don’t know the processes for exporting. Our leather competes globally, but we need support to scale,” he stated.

Industry players said, harnessing the AfCFTA opportunity will require Nigerian entrepreneurs to improve product quality, formalise their businesses, form cooperatives for larger production, and adopt digital tools for cross-border marketing and payments. Many argue Nigeria can become a major exporter of leather footwear, kano-dyed textiles, processed hibiscus (zobo) flowers, packaged cassava products, and tech outsourcing services, all of which are gaining attention in East and Southern Africa.

The youth population is also expected to benefit from new opportunities in logistics, creative industries, e-commerce and digital services.

Trade lawyer, Gbemisola Adeoye warned that, the agreement could expose unprepared local businesses to increased competition. “AfCFTA is not just an export platform; it also opens Nigeria to imports from other African countries,” he said. “If our businesses do not upgrade and prepare, the market could be dominated by others.”

The federal government has introduced several trade facilitation and capacity-building programmes to support AfCFTA readiness, but adoption remains slow, particularly in the informal sector.

While AfCFTA is projected to boost intra-African trade significantly, analysts say Nigeria’s ability to lead will depend on how quickly entrepreneurs, manufacturers and service providers build capacity and align with continental standards.

“The opportunity is there, but time is running,” Adeoye said. “Nigeria has the potential to become a major AfCFTA powerhouse if its people start preparing now.”