AfCFTA Protocols on digital trade, services presents opportunities for Nigeria

The AfCFTA Protocols on digital trade and trade in services represent powerful tools for transformation, presenting unparalleled opportunities for Nigeria to elevate its economic profile.

These protocols, designed to enhance trade and economic integration across Africa, are particularly significant for Nigeria, as they offer pathways to boost economic competitiveness, accelerate job creation, and foster inclusive growth.

During an official visit to Nigeria, Wamkele Mene, Secretary-General of the AfCFTA Secretariat, noted the transformative potential of these protocols for Nigeria.

“I urge you to seize this moment and work together to build a prosperous future for Nigeria and the entire African continent,” Mene said, recognising the critical role Nigeria could play in driving the success of the AfCFTA.

In recent years, Nigeria has emerged as one of Africa’s most dynamic and promising destinations for digital investment. The World Economic Forum noted that 92 percent of all venture capital investments in Africa’s tech sector are concentrated in just four countries: Nigeria, Egypt, Kenya, and South Africa. This highlights Nigeria’s leadership in the digital economy and underscores its capacity to lead the continent’s digital transformation.

“I am pleased to note that over the past two decades, Nigeria’s digital economy has experienced exponential growth. Reforms in the telecommunications and financial sectors in the early 2000s laid a strong foundation for this progress,” Mene stated.

With the AfCFTA Protocol on digital trade now in place, Nigeria is well-positioned to harness this foundation to unlock even greater opportunities for growth and continental integration.

The Protocol on digital trade opens up remarkable possibilities. By creating a single market of over 1.4 billion people, Nigerian businesses can now export digital goods and services, ranging from fintech solutions and software development to digital marketing—to an expansive audience. Mene highlighted the limitless potential, stating, “Imagine Nigerian fashion designers selling directly to customers in Kenya or Nigerian-made software powering businesses in South Africa. The doors to new markets are wide open.”

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Additionally, the Protocol simplifies cross-border e-commerce by streamlining customs procedures and harmonising regulations. This not only facilitates the flow of digital goods and services but also creates an enabling environment for Nigerian businesses to thrive. The prospect of attracting increased investment into Nigeria’s digital sector is equally promising. By fostering a stable and predictable regulatory environment, the Protocol positions Nigeria as a hub for digital innovation, attracting investors eager to drive growth, create jobs, and advance technology.

Supporting this optimism, a report by ODI Global estimates that with appropriate policies, Nigeria’s GDP could grow by up to 12.8 percent above baseline levels, while employment could increase by 15.4 percent to 40.9 percent. Exports are projected to grow by 16.9 percent to 59.8 percent.

“These figures are not just numbers; they represent a clear roadmap for Nigeria to lead Africa’s digital transformation through targeted investment in infrastructure, skills development, and digital policy reforms,” Mene affirmed.
The Protocol on trade in services is another critical pillar of the AfCFTA, offering immense opportunities for Nigeria’s services sector. By reducing trade barriers, harmonising regulations, and creating a seamless environment for cross-border trade, the Protocol provides access to a US$3 trillion market. It allows professionals to move freely across borders and opens doors for value-added exports and diversified economic growth.

Nigeria’s vibrant services sector is well-suited to capitalise on this opportunity. By investing in infrastructure, enhancing skills, and adopting supportive policies, the country can unlock its full potential and contribute meaningfully to Africa’s broader vision of economic integration. “Take the financial services sector, for example,” Mene noted. “Nigerian banks and fintech companies have already redefined financial solutions across the continent. With the Protocol, they can expand further, providing critical services to businesses and individuals across Africa.”

Similarly, the Protocol presents significant benefits for professional services. Nigerian professionals, from engineers to consultants, will now have easier access to markets across Africa, fostering knowledge transfer, collaboration, and economic development.

Mene concluded by highlighting the collective ambition that the AfCFTA represents. “The AfCFTA is more than a trade agreement; it’s a vision for a prosperous and interconnected Africa,” he said. However, he also emphasized that realizing this vision requires concerted efforts from all stakeholders. “For governments, the mandate is clear: establish consistent, forward-looking legal frameworks that support digital trade and facilitate the seamless movement of services across borders. For the private sector, the opportunities are vast. This is your moment to innovate, invest, and expand into new markets.”

The AfCFTA provides the platform, but it is up to businesses, governments, and supporting partners to take bold steps and leverage this unprecedented access to a continental market. Together, these efforts can transform Nigeria into a leading player in Africa’s economic integration, driving sustainable growth and prosperity for generations to come.