The Central Bank of Nigeria (CBN) and the Federal Ministry of Industry, Trade, and Investment have jointly called for enhanced private-sector involvement in policy formulation to lower cross-border trade obstacles and fast-track the African Continental Free Trade Area (AfCFTA) implementation. The appeal was made during a business symposium organized by Citibank in Abuja, gathering policymakers, regulators, financial institutions, and business leaders from Nigeria, Ghana, and Côte d’Ivoire to deliberate on expanding trade along West Africa’s key economic corridors.
Financial Intermediation Key to AfCFTA Success
Lamido Yuguda, Deputy Governor for Financial System Stability at the CBN, emphasized that efficient financial intermediation would be crucial as intra-African trade expands under AfCFTA. He highlighted the need to strengthen cross-border payment systems, improve foreign exchange market functionality, and expand access to trade finance to 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 stated. He added 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. The Central Bank of Nigeria will continue to support initiatives that enhance financial stability while promoting greater regional integration,” Yuguda said.
Industrial Policy and Value Addition
John Enoh, Minister of State for Industry, Trade and Investment, outlined Nigeria’s ambition to become a leading exporter of manufactured goods within Africa through policies supporting industrial growth, export expansion, and regional value chains. He described AfCFTA as 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,” Enoh said. The minister stressed the need for Africa to move beyond exporting raw materials and focus on value addition, calling industrial policy a critical missing link in unlocking the full benefits of regional trade. Highlighting the Lagos-Abidjan trade corridor, Enoh noted its potential for industries like cocoa, where processing and manufacturing could deepen regional value chains. He pointed out that the difference between exporting raw cocoa beans and selling branded chocolate products illustrates the need for African economies to capture greater value from their natural resources.
Data-Driven Proposals and Strategic Role
The CBN and the Ministry 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. Nneka Enwereji, managing director and CEO of Citibank Nigeria Limited, stated that Nigeria occupies a strategic position in AfCFTA’s success and stands to benefit significantly from expanded regional commerce. She explained that the agreement is designed to facilitate the efficient cross-border movement of goods, capital, and payments across Africa. “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,” Enwereji said.
