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The Federal Government has intensified efforts to position Nigerian digital businesses to benefit from the African Continental Free Trade Area, rolling out macroeconomic reforms, regulatory measures, and market integration strategies aimed at expanding cross-border digital commerce across Africa.
Speaking at the opening of the second AfCFTA Digital Trade Forum in Lagos, the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, said Africa’s digital economy presents one of the continent’s most significant opportunities for economic integration, while noting that regulatory and policy bottlenecks continue to hinder cross-border growth.
The two-day forum brought together policymakers, regulators, investors, development partners, and technology companies from across the continent to explore strategies for implementing the AfCFTA Digital Trade Protocol and building a more connected African digital marketplace.
Addressing stakeholders, Oduwole said trade is evolving beyond traditional infrastructure such as ports, highways, and shipping corridors, with digital platforms increasingly shaping how businesses operate and scale.
She noted that digital trade is opening new growth pathways for African businesses, enabling companies to serve customers across borders without requiring physical expansion into multiple markets.
According to the minister, Nigeria’s information and communications technology sector now contributes nearly 18 per cent to the country’s Gross Domestic Product, while the country accounts for approximately 28 per cent of Africa’s fintech ecosystem. She added that with over 60 per cent of Nigerians under the age of 25, the country remains one of Africa’s largest reservoirs of digital talent.
Oduwole said digital trade offers a transformative opportunity for Africa’s economic integration, but warned that persistent challenges such as fragmented payment systems and inconsistent regulatory frameworks continue to limit growth.
She explained that although Nigerian businesses are increasingly developing globally competitive digital products, scaling across African markets remains difficult when firms face payment barriers and varying compliance requirements in different jurisdictions.
The minister linked Nigeria’s digital trade ambitions to broader economic reforms introduced by the Federal Government over the past three years, noting that measures to stabilise the macroeconomic environment have improved investor sentiment.
She said reforms addressing foreign exchange distortions, inflationary pressures, and capital market inefficiencies have contributed to stronger economic stability. According to her, capital importation rose to more than $20 billion in 2025, compared to less than $4 billion three years earlier, while Nigeria’s sovereign outlook has improved across major international rating agencies.
Oduwole also highlighted legislative reforms designed to support digital enterprise growth, including the Tax Reform Acts and the Investment and Securities Act 2025, which provide greater clarity for digital assets, crowdfunding, and emerging investment models.
She added that reforms in intellectual property protection now recognise software, digital content, and innovation as commercially valuable assets that can be protected, monetised, and scaled across markets.
Despite the progress, the minister observed that intra-African digital trade remains significantly underdeveloped. She disclosed that only five per cent of Africa’s digitally delivered services are currently traded within the continent, describing the figure as evidence of a substantial untapped market.
To address this gap, she revealed that the Federal Ministry of Industry, Trade and Investment conducted Nigeria’s first comprehensive mapping of the digital services ecosystem in April 2025.
The exercise produced what she described as Africa’s first structured directory of digital services firms and identified five priority expansion markets for Nigerian businesses: Egypt, Ghana, Kenya, Rwanda, and South Africa.
She noted that the mapping exercise also exposed limitations in traditional business classification systems, many of which no longer reflect the realities of modern digital business models.
Meanwhile, the Secretary-General of AfCFTA, Wamkele Mene, said Africa’s digital economy could expand from an estimated $180 billion today to $712 billion by 2050 if governments accelerate implementation of the Digital Trade Protocol.
Mene described digital trade as one of Africa’s most powerful tools for overcoming longstanding barriers such as fragmented markets, costly cross-border transactions, and inefficient trade processes.
He commended Nigeria’s leadership in advancing digital trade, noting that the country serves as one of AfCFTA’s Digital Trade Co-Champions alongside Kenya and South Africa, and remains the first country to secure parliamentary approval for ratifying the Digital Trade Protocol.
According to Mene, digital commerce is already reshaping trade across Africa by enabling entrepreneurs to access regional markets without the traditional limitations of geography.
He said Africa’s digital economy currently contributes about 5.2 per cent of continental GDP and could rise to 8.5 per cent by 2050, representing a $712 billion market.
Mene identified digital financial services as a major driver of this growth, noting that Africa accounts for nearly 70 per cent of global mobile money transaction value.
He added that integrated payment systems such as the Pan-African Payment and Settlement System are helping remove longstanding trade barriers by enabling businesses to transact in local currencies instead of relying heavily on the US dollar or euro.
He urged African governments to harmonise digital trade regulations, expand broadband infrastructure, strengthen cybersecurity frameworks, and accelerate digital skills development, particularly for women, youth, and small businesses.
The Lagos State Government also reaffirmed its ambition to position Lagos as Africa’s leading hub for digital commerce.
Commissioner for Commerce, Cooperatives, Trade and Investment, Folashade Bada Ambrose-Medebem, said the implementation of the AfCFTA Digital Trade Protocol presents a significant opportunity to connect African businesses to a market of more than 1.4 billion people.
She noted that digital trade is increasingly transforming how African enterprises, particularly small and medium-sized businesses, participate in regional and global commerce.
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