CBN, trade ministry speak on AfCFTA trade reforms at Citibank forum

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The Central Bank of Nigeria (CBN) and the Federal Ministry of Industry, Trade, and Investment have called for stronger private-sector participation in policy formulation.

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The two institutions said greater business input is needed to reduce cross-border trade barriers and accelerate the implementation of the African Continental Free Trade Area (AfCFTA).

The call was made at a business symposium organised by Citibank in Abuja, where policymakers, regulators, financial institutions, and business leaders from Nigeria, Ghana, and Côte d’Ivoire discussed ways to expand trade along West Africa’s major economic corridors.

Speaking at the event, the Deputy Governor for Financial System Stability at the CBN, Lamido Yuguda, said efficient financial intermediation would be critical to the success of AfCFTA as intra-African trade expands.

He said strengthening cross-border payment systems, improving foreign exchange market functionality, and expanding access to trade finance would help reduce transaction costs and facilitate smoother trade flows across the continent.

“As intra-African trade scales under AfCFTA, the efficiency of financial intermediation will play a pivotal role,” Yuguda said, adding that central banks must act as enablers by building sound payment and trade systems and unlocking access to finance for businesses operating across borders.

“Strengthening cross-border payment systems, improving FX market functionality, and deepening access to trade finance are essential to reducing transaction costs and enabling smoother trade flows.

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“The Central Bank of Nigeria will continue to support initiatives that enhance financial stability while promoting greater regional integration,” Mr Yuguda said.

Industrial policy

Also speaking, the Minister of State for Industry, John Enoh, said Nigeria was positioning itself to become a leading exporter of manufactured goods within Africa through policies that support industrial growth, export expansion, and regional value chains.

According to the minister, AfCFTA presents a significant opportunity to strengthen Nigeria’s industrial base and improve market access for businesses.
“Our focus is on strengthening the competitiveness of Nigerian industries, improving the ease of doing business, and implementing policies that support export growth and regional value chains,” Mr Enoh said.

The minister stressed the need for Africa to move beyond exporting raw materials and focus on value addition, describing industrial policy as a critical missing link in unlocking the full benefits of regional trade.

Highlighting the importance of the Lagos-Abidjan trade corridor, Mr Enoh said the route holds significant potential for industries such as cocoa and could help deepen regional value chains through processing and manufacturing.

He noted that the difference between exporting raw cocoa beans and selling branded chocolate products reflects the need for African economies to capture greater value from their natural resources.

The CBN and the Ministry of Industry, Trade, and Investment jointly urged businesses to submit data-driven and evidence-based proposals to policymakers to help address cross-border trade bottlenecks and improve the business environment under AfCFTA.

Also at the forum, Nneka Enwereji, managing director and chief executive officer of Citibank Nigeria Limited, said Nigeria occupies a strategic position in the success of AfCFTA and stands to benefit significantly from expanded regional commerce.

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Ms Enwereji said the agreement was designed to facilitate the efficient cross-border movement of goods, capital, and payments across Africa.

She added that Citibank remains committed to providing financial solutions that enable businesses to expand beyond their domestic markets.

“Nigeria plays a pivotal role in the success of the African Continental Free Trade Area (AfCFTA), presenting significant opportunities for businesses. The AfCFTA aims to facilitate the efficient cross-border movement of goods, capital, and payments.

“Citi is committed to providing practical financial solutions that empower our clients to expand regionally and enhance their competitiveness in new markets,” Ms Enwereji said.