Nigerian Exporters Underutilize AfCFTA Despite Record Non-Oil Export Figures
The Network of Practising Non-Oil Exporters of Nigeria (NPNEN) has raised significant concerns over the low adoption of the African Continental Free Trade Area (AfCFTA) by Nigerian exporters, even as the country recorded a substantial N12.36 trillion in non-oil exports last year. This alarming trend was detailed in a comprehensive market survey conducted by the organization, which received support from the UK International Development.
Survey Methodology and Key Findings
The survey employed a robust methodology, incorporating four primary data sources: a desk review, an exporter survey, key informant interviews, and a multi-location validation workshop. While official data indicate rising non-oil export values and expanding destination markets, the findings reveal a deeply skewed export structure dominated by micro-scale exporters, with a notable absence of mid-sized players.
Key statistics from the survey include:
- 66 per cent of exporters operate below $50,000, confirming a highly fragmented and micro-scale export landscape.
- 62 per cent of export constraints originate before the border, highlighting domestic bottlenecks as the primary barrier to export performance.
- 50 per cent of exporters recorded at least one shipment in the last 24 months, indicating irregular and inconsistent export activity.
- 34 per cent of exporters identified shipping costs as a major constraint, reinforcing logistics as a critical competitiveness issue.
- 37 per cent frequently experience limited access to working capital, showing finance as a recurring operational barrier.
- 50 per cent of women-led exporters achieved at least one export transaction, demonstrating strong participation but limited scale.
Implications for Nigeria's Trade Strategy
The survey underscores the urgent need for targeted interventions to enhance AfCFTA utilization. The dominance of micro-scale exporters and the pronounced missing middle between low-value and high-value performers suggest structural weaknesses in Nigeria's export ecosystem. Domestic bottlenecks, such as logistical challenges and financial constraints, are identified as critical areas requiring immediate attention to improve export competitiveness and leverage the opportunities presented by the AfCFTA.
