By Aleksandar Stojanov, Samer Matta and Ruchita Manghnani
African countries still trade more with the rest of the world than with each other. Intra-African trade sits at around 14 percent of the continent’s total, compared to roughly 60 percent within the European Union and 50 percent within Asia. That gap represents an enormous missed opportunity. The African Continental Free Trade Area (AfCFTA), the world’s largest free-trade initiative by number of participating countries, encompassing 54 of the 55 African Union member states, was designed to close it. Despite widespread political support, implementation has been slow and uneven. But change is in the air.
Nigeria, Africa’s most populous country with almost 237 million people and one of its biggest economies with a GDP of roughly $290 billion in 2025, is stepping up. In April 2025, it formally adopted a tariff liberalisation schedule covering 80 percent of traded goods, becoming one of the 24 state parties to have published their schedules as of May 2026. In November 2025, it ratified the Digital Trade Protocol, another important milestone for regional integration. More recently, in April 2026, the authorities adopted new measures to remove selected import bans and gradually phase out Import Adjustment Taxes.
The stakes are high. If fully implemented, AfCFTA could boost Africa’s exports to the rest of the world by 32 percent by 2035, more than double intra-African exports led by manufactured goods and lift an estimated 50 million people out of extreme poverty. In a world gripped by escalating trade tensions, a unified African market of 1.5 billion people could be a game changer.
AfCFTA’s approach to trade liberalisation is gradual by design.
The agreement’s first phase, which took effect on January 1, 2021, calls for eliminating tariffs on most goods over ten years for least developed countries and five years for others. As a member of ECOWAS, Nigeria benefits from the ten-year timeframe. With its tariff schedule now formally adopted, Nigerian companies can begin trading under AfCFTA rules and access preferential tariffs across participating economies. But tariffs are only part of the story. The agreement’s subsequent phases cover trade in services, investment, intellectual property rights, digital trade, and the participation of women and youth in trade, each critical to unlocking the full promise of the continental market.
Nigeria is also pushing the digital agenda forward
In February 2025, it was appointed co-champion of the AfCFTA Digital Trade Protocol alongside Kenya and South Africa. It submitted its Schedule of Specific Commitments for Trade in Services to the ECOWAS Commission in October 2025. And its legislature is considering the National Digital Economy and E-Governance (NDEG) Bill to align national law with the AfCFTA Digital Trade Protocol. Passing and implementing this bill swiftly would be a decisive step toward a more integrated, competitive, and inclusive digital economy.
Yet trade barriers remain high
Twenty-six member states have not yet implemented tariff liberalization, and four, Libya, Sudan, South Sudan, and Eritrea, have not ratified the agreement. Infrastructure gaps, limited intra-continental shipping, and fragmented border systems continue to keep trade costs high.
Nigeria has shown what political will looks like. But for AfCFTA to deliver its full promise, all member states need to act. Here is what that requires.
Well-sequenced tariff reform is critical to unlocking the gains from AfCFTA
Countries should carefully assess the potential gains from trade and adopt clear, sequenced strategies to progressively reduce tariffs, especially in sectors where domestic production capacity is limited, and protection has undermined economic growth and welfare. While many AfCFTA tariff schedules have already been negotiated, effective liberalisation requires formal adoption, transparent publication, and complementary reforms to ensure that lower tariffs translate into stronger trade, competitiveness, better jobs and consumer welfare gains.
Countries must go beyond tariff cuts to facilitate trade
That includes investing in more efficient border management, digitalising customs systems, and ensuring interoperability between those systems. For example, the NDEG Bill, if adopted, would enable electronic Bills of Lading, potentially transforming how customs, traders, logistics firms, and banks handle cross-border transactions.
Equally important is prioritising digital trade reform
Enshrining the protocol in domestic law is essential to allow African firms, especially small firms and startups, to fully participate in the digital economy and tap into new regional markets.
By taking these steps and maintaining the momentum that Nigeria has provided, Africa can reap the full benefits of the AfCFTA in terms of economic growth, investment, and above all, more and better jobs.
