DIGITAL FOOTPRINT OF AfCFTA IN NIGERIA

With the integration of the African Continental Free Trade Area (AfCFTA) and its ratification by Nigeria, the Federal Government has adopted several policy measures to ensure smooth implementation. One of the most notable is the establishment of the National Action Committee (NAC) on AfCFTA, now restructured as the Nigeria AfCFTA Coordination Office (NACO). NACO coordinates the activities of Ministries, Departments, and Agencies (MDAs) alongside private sector stakeholders to implement interventions designed to prepare Nigerian businesses. Its mandate includes providing up-to-date information on the agreement’s status, outlining available incentives and access mechanisms, advising on compliance obligations, supporting businesses in structuring individual implementation plans, and ensuring Nigeria’s adherence to World Trade Organization (WTO) free trade standards during AfCFTA implementation.

Another milestone is Nigeria’s participation in the Guided Trade Initiative (GTI), which marked the country’s official commencement of trade under AfCFTA’s preferential regime. This development signals both a boost in intra-African trade and a pathway toward economic diversification.

AfCFTA and Africa’s Digital Economy

Under Africa’s emerging digital economy, AfCFTA has introduced the Digital Trade Protocol (DTP), aimed at enhancing intra-African digital trade and positioning the continent for stronger engagement with global digital markets. The DTP harmonizes digital trade rules and principles, ensuring a streamlined, secure, and inclusive digital trading environment. It is expected to drive socio-economic growth while advancing the continent’s digital transformation.

Given AfCFTA’s expansive 1.3 billion consumer market, the Digital Trade Protocol provides Nigeria with an unparalleled opportunity to expand its digital trade footprint. By establishing a modern and comprehensive framework for cross-border e-commerce, harmonized digital regulations, and the growth of both digital and non-digital services, the Protocol lays the foundation for Nigeria to strengthen its position as a continental digital hub.

The AfCFTA Digital Trade Protocol was formally adopted at the 37th African Union Heads of State and Government Summit held on 17–18 February 2024. This protocol is regarded as a landmark legal instrument to accelerate technology-driven innovations, e-commerce, and digital entrepreneurship across Africa.

Building on this momentum, the African Union (AU) has formally endorsed Nigeria as the Digital Trade Champion for the continent. At the 38th Ordinary Session of the Assembly of Heads of State and Government, held in Addis Ababa in 2025, Nigeria was recognized for its proactive role in promoting digital enterprise and driving the early implementation of the Protocol. This endorsement consolidates Nigeria’s leadership position and places the country at the center of shaping Africa’s digital trade agenda.

Nigeria’s Digital Trade Ecosystem

Nigeria’s digital economy spans ICT services, e-commerce, fintech, and digital entrepreneurship, making the country a central player in AfCFTA’s digital framework. With over 109 million internet users, the country possesses a significant digital market and a growing pool of tech-savvy entrepreneurs. This digital prowess, coupled with the government’s commitment to fostering a robust digital economy, positions Nigeria as a natural leader in Africa’s digital trade landscape.

Recent surveys by the Federal Ministry of Industry, Trade and Investment reveal that Nigeria’s digital businesses are overwhelmingly youth-driven, with the majority led by entrepreneurs between the ages of 25 and 44. These young innovators are particularly active in fintech, e-commerce, and cloud-based services, underscoring Nigeria’s dynamic role as Co-Champion of Digital Trade within AfCFTA’s $3.4 trillion single market.

The global context further reinforces this trend. The World Trade Organization (WTO) reports that digitally delivered services have become the fastest-growing segment of international trade, expanding at an annual average of 8.1 percent between 2005 and 2022, outpacing both goods and traditional services. Nigeria’s role, therefore, is not merely one of participation but of leadership in shaping Africa’s digital revolution. As noted by AfCFTA’s Nigerian Co-Champion, Oduwole, registered companies already make up about 75 percent of the firms surveyed, illustrating both formalization and depth within Nigeria’s digital trade ecosystem.The Federal Government has unveiled a comprehensive strategy to position Nigeria as a continental leader in digital trade. This includes:

Expanding digital infrastructure investments.
Promoting disruptive innovation and entrepreneurship.
Supporting implementation of the AfCFTA Digital Trade Protocol.
Developing technical talent hubs to strengthen human capital.
Expanding the Investment in Digital and Creative Enterprises (iDICE) program to attract domestic and foreign investment in the technology sector.

Fintech as a Driver of AfCFTA Implementation

Fintech plays a pivotal role in the AfCFTA landscape, particularly in facilitating cross-border payments and mitigating currency risks. This has led to the introduction of the Pan-African Payment and Settlement System (PAPSS), a pioneering financial market infrastructure designed to enable seamless payment transactions across Africa. PAPSS connects banks, payment service providers, governments, and fintechs, thereby eliminating the long-standing challenge of fragmented and costly cross-border payments

In parallel, private sector players are innovating within the AfCFTA framework. For instance, Zenith Bank’s fintech subsidiary, Zenpay, has partnered with AfCFTA to develop the SMARTAfCFTA trade portal. This digital platform provides real-time trade-related information; such as trade indicators, market trends, customs tariffs, rules of origin, and export diversification opportunities thereby equipping African businesses and policymakers with critical tools for intra-African trade. While not a payment platform itself, SMARTAfCFTA is designed to be interoperable with PAPSS, ensuring an integrated trade and payment ecosystem

Future Opportunities for Fintech under AfCFTA

The fintech sector still holds vast opportunities for growth under AfCFTA. Current and emerging areas include:

Payment facilitation, with PAPSS as the recognized infrastructure for intra-African trade.
Settlement and reconciliation solutions to support digital cross-border transactions.
Expansion of fintech services across national boundaries under AfCFTA’s single market framework.
Investment in innovation, particularly in blockchain, artificial intelligence, and digital identity systems that can support trade facilitation and compliance.

If effectively harnessed, Nigeria’s fintech industry, already one of the most dynamic in Africa could
serve as a continental hub for AfCFTA-driven digital transformation.

References

World Trade Organization (WTO), Principles of the Multilateral Trading System, accessed 2025.
Overseas Development Institute (ODI), Nigeria’s Digital Trade Revolution: Leading the Way Under the AfCFTA, 2024. Available at: https://odi.org/en/insights/nigerias-digital-trade-revolution-leading-the-way-under-the-afcfta/
African Union, 37th Ordinary Session of the Assembly of Heads of State and Government: Key Outcomes, February 2024.
African Union, 38th Ordinary Session of the Assembly of Heads of State and Government: Communiqué on Digital Trade Champion Endorsement, February 2025.
BusinessDay Nigeria, “How tech-savvy Nigerian youths are driving Africa’s digital trade,” 2024. Available at: https://businessday.ng/interview/enterpreneur/article/how-tech-savvy-nigerian-youths-are-driving-africas-digital-trade/#google_vignette
Federal Government of Nigeria, National Digital Economy Policy and Strategy (2019–2024).
Afreximbank, Pan-African Payment and Settlement System (PAPSS): Overview, 2024.
AfCFTA Secretariat & Zenith Bank, SMARTAfCFTA Trade Portal Launch Report, 2024.

DIGITAL FOOTPRINT OF AfCFTA IN NIGERIA