Federal Government Targets $3.5 Trillion AfCFTA Market for MSMEs with New Digital Payments Report
The federal government has launched a high-level report titled "Cross-Border Digital Payments and Identity in Nigeria under the AfCFTA," aiming to unlock trade opportunities for Micro, Small, and Medium Enterprises (MSMEs) to access the $3.5 trillion African Continental Free Trade Area (AfCFTA) market. This initiative is part of a broader strategy to enhance Nigeria's role in digital trade across Africa.
Strategic Launch and Government Commitment
The report was unveiled in Abuja by the Deputy Chief of Staff to the President, Ibrahim Hassan Hadejia, hosted by the Office of the Vice President in collaboration with ODI Global under the Supporting Investment and Trade in Africa (SITA) programme. Hadejia described the research as both timely and strategic, highlighting strong coordination with the Federal Ministry of Industry, Trade and Investment.
He noted that this report builds on previous milestones, including the development of Nigeria's Digital Trade Strategy and capacity-building programmes for subnational leaders. Hadejia emphasized that Nigeria is increasingly leading the digital trade agenda in Africa, necessitating a forefront position in AfCFTA implementation to foster growth and job creation.
Key Recommendations and Fintech Role
The report identifies efficient cross-border payments, supported by trusted digital identity systems, as crucial for realizing President Bola Ahmed Tinubu's Renewed Hope vision for MSMEs. While the Pan-African Payment and Settlement System (PAPSS) is highlighted as a critical platform, Nigerian fintech firms like PalmPay and Moniepoint are expected to play a pivotal role in driving adoption due to their large user bases.
Hadejia assured that the Federal Government remains committed to strengthening infrastructure, regulatory frameworks, and partnerships to ensure Nigeria is ready for digital trade and continues to lead. He urged stakeholders to transform AfCFTA into a $3.5 trillion trade juggernaut that reinvigorates industries and domesticates African prosperity.
Addressing Challenges and Enhancing MSME Ecosystem
Special Adviser to the President on Job Creation and MSMEs, Temitola Adekunle-Johnson, commented that the report will significantly strengthen the MSME ecosystem. He explained that cross-border payments in Nigeria and Africa have historically been informal and inefficient, but the emergence of systems like the Bank Verification Number (BVN) and National Identification Number (NIN) is changing the landscape.
Adekunle-Johnson expressed optimism that the report's findings will enable Nigerian SMEs to achieve seamless access to continental markets. Additionally, Special Assistant to the President on ICT Policy, Salihu Dasuki, disclosed that a framework has been developed to fast-track seamless cross-border payments for MSMEs, aligning with the President's goal of enabling digital trade access.
Support from Development Partners
Special Assistant to the President on Project Support, Shuda Ahmed, commended ODI Global for leading the research. She noted that without seamless and affordable cross-border payment systems, MSMEs across the continent would be unable to scale beyond their domestic markets, underscoring the importance of this initiative for economic growth.
