As Africa’s most populous nation, Nigeria must emulate its economic counterparts in embracing the free trade agreement which promises significant economic benefits. Nigeria can overcome its trade barriers and foster economic growth by harmonising its trade tariff with state parties. It should also invest in specialised technologies to effectively manage security threats without imposing restrictive border controls.
In 2018, more than 40 member states of the African Union signed the Africa Continental Free Trade Area(AfCFTA) agreement after its adoption in Kigali, Rwanda.
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The AfCFTA agreement aims to create a single continental market for goods and services in Africa, reduce trade barriers and boost intra-Africa trade. If fully implemented, it is projected to propel regional expansion worth $3.4 trillion. It is also projected to boost foreign direct investments and increase exports to the rest of the world by 32 per cent.
However, the national implementation of the agreement has been slow. Signatories like Nigeria, one of Africa’s leading economies, still contend with problems such as protectionism and insecurity, which delays its participation in the continental market. The treaty contains provisions such as free border exchange and trade tariff reduction seeking to facilitate economic integration. But this depends on state parties implementing the treaty’s trade mechanism.
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Overcoming the Protectionist Dilemma
The Nigerian government has been shielding its local industries from foreign competition for decades, implementing restrictive trade measures to prevent the importation of cheaper products from countries such as the Republic of Benin. Benin is Nigeria’s neighbour to the west and has been a key re-exporter of cheaper foodstuff into the country.
One of the trade measures Nigeria took included the implementation of the border closure policy in 2019, under the Buhari-led administration.
The border closure policy defines the government’s decision to halt all trade and movement of goods and people across its land borders with neighbouring countries, primarily to curb smuggling, mitigate insecurity and boost local production.
Although all closed borders had been opened as of March 2024, citizens continue to decry the indelible impact it has had on the economy.
In January 2025, members of the National Assembly criticised the border closure policy, describing it as an ineffective and self-deceptive approach that affected the country, hampering economic fortunes and regional trade. The AfCFTA agreement promises an economic boost, but Nigeria is still holding back in its full implementation.
Aside from border restrictions, Nigeria has also been reluctant to remove tariffs, especially on in-demand agricultural produce like rice and sugar. As of 2024, the country maintained a tax rate of 70 per cent on rice and 75 per cent on sugar imported into the country.
Nigeria’s protective measures counter AfCFTA’s goal of free exchange between signatory states and, in turn, prevents the country from partaking in the benefits of AfCFTA. But the narrative can be changed.
The West African nation can facilitate its involvement in the continent’s free trade initiative, first, by officially gazetting its tariff concessions under the trade mechanism.
As part of its efforts to promote free exchange, the agreement requires state parties to harmonise all tariff policies, aiming for a 90 per cent reduction on non-sensitive import goods. Adoption would yield an increase in imports and potentially propel an economy attractive to foreign direct investment. Countries like South Africa, Rwanda and Ghana are practical examples of states whose economies have significantly developed since gazetting their tariff concessions.
As of December 2024, South Africa’s energy sector acquired over US$7 billion in foreign direct investments.
Leveraging Advanced Technology to Tackle Insecurity
Another challenge that has prevented Nigeria from implementing AfCFTA’s open border policy is insecurity. Insecurity remains one of the biggest barriers to free movement across Nigeria’s borders.
The country has encountered a series of security issues, including insurgency in the North-East, banditry in the North-West, and ethnic violence in border areas like North-East Benin and North-West Nigeria. Nigeria’s security issues have led to even stricter border regulation, which it fears the free movement provisions of the AfCFTA might undermine.
However, Nigeria can sustainably contain security issues while ensuring an open border. To achieve this, the state should subscribe to investing in advanced technologies like border surveillance systems, such as drones, satellite monitoring, and biometric systems, to enhance border security. This infrastructure will enable the detection and prevention of illegal movements, smuggling, and cross-border crime.
As Africa’s most populous nation, Nigeria must emulate its economic counterparts in embracing the free trade agreement which promises significant economic benefits. Nigeria can overcome its trade barriers and foster economic growth by harmonising its trade tariff with state parties. It should also invest in specialised technologies to effectively manage security threats without imposing restrictive border controls.
Favour Adeboye is a development journalist and a Free Trade fellow at Ominira Initiative.
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