By Jennete Ugo Anya
Nigeria is accelerating efforts to position its digital businesses for the opportunities created by the African Continental Free Trade Area (AfCFTA), with the federal government rolling out a mix of economic reforms, regulatory changes and market integration initiatives aimed at making the country a leading hub for cross-border digital commerce.
The strategy reflects a broader shift in Africa’s trade landscape, where software, digital payments, online services and e-commerce are becoming as important as traditional exports. While the continent has made significant progress in expanding its digital economy, policymakers argue that fragmented regulations, payment barriers and weak digital infrastructure continue to limit the full benefits of intra-African trade.
Speaking at the opening of the second AfCFTA Digital Trade Forum in Lagos, the Honourable Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, described digital trade as one of Africa’s greatest opportunities for accelerating economic integration and inclusive growth.
The two-day forum brought together policymakers, regulators, investors, development partners and technology companies to advance implementation of the AfCFTA Digital Trade Protocol and build a more connected African digital marketplace.
According to Dr. Oduwole, trade is undergoing a profound transformation as digital platforms increasingly replace traditional physical channels.
“When we talk about trade, we often think about ports, highways, rail corridors and shipping routes. Those investments remain essential, but trade is changing.
“Today, a software developer in Lagos can serve a client in Nairobi. A business in Kigali can collaborate with partners in Accra without establishing a physical presence. Digital trade is opening new pathways for African businesses to grow, export and compete. The question is whether we are creating the conditions for them to do so,” she said.
Nigeria believes it is well positioned to lead that transformation.
The minister disclosed that the Information and Communications Technology (ICT) sector now contributes nearly 18 percent of Nigeria’s Gross Domestic Product (GDP), while the country accounts for about 28 percent of Africa’s fintech companies. Coupled with the fact that more than 60 percent of Nigerians are below the age of 25, she said the country possesses one of Africa’s largest pools of digital talent.
“We believe digital trade is one of the most significant opportunities to accelerate Africa’s economic integration and transformation,” Dr. Oduwole said.
However, she warned that businesses still face major obstacles when expanding across African markets.
“A business may build a world-class product in Lagos, but if it struggles to receive payments in another African market or must navigate completely different regulatory requirements every time it crosses a border, then we have not yet unlocked the full promise of the AfCFTA,” she noted.
The minister linked Nigeria’s digital trade ambitions to broader economic reforms undertaken over the past three years.
She said the government’s macroeconomic reforms have improved investor confidence by addressing foreign exchange distortions, strengthening economic stability and attracting higher capital inflows.
According to her, capital importation rose to more than $20 billion in 2025, compared with less than $4 billion three years earlier, while Nigeria’s sovereign outlook has been upgraded by all three major international credit rating agencies.
She also highlighted recent legislative reforms designed to strengthen the digital economy.
These include the Tax Reform Acts, which simplify Nigeria’s tax system, and the Investment and Securities Act 2025, which provides greater regulatory certainty for crowdfunding, digital assets and emerging investment models.
“Our work on intellectual property also recognises software, creative content and innovation as valuable commercial assets that must be protected, commercialised and monetised.
“Collectively, these reforms make it easier to build a digital services company in Nigeria, protect innovation and scale across Africa,” Dr. Oduwole said.
Despite these reforms, the minister acknowledged that Africa remains far from realising the full potential of digital trade.
She revealed that only five percent of digitally delivered services are currently traded within Africa, describing the figure as evidence of an enormous untapped market.
To address that gap, the Federal Ministry of Industry, Trade and Investment conducted Nigeria’s first comprehensive mapping of the country’s digital services ecosystem in 2025.
The exercise produced what she described as Africa’s first directory of digital services firms while identifying Egypt, Ghana, Kenya, Rwanda and South Africa as priority expansion markets for Nigerian companies.
It also exposed weaknesses in existing business classification systems, prompting plans to redesign them to better reflect today’s technology-driven economy.
“We found that many digital businesses no longer fit neatly within traditional industry classifications.
“We are therefore updating our business classification framework to better reflect today’s digital economy, ensuring that our policies, incentives and support programmes are designed around the businesses that are actually driving growth,” she said.
Also speaking at the forum, Secretary-General of the AfCFTA Secretariat, Mr. Wamkele Mene, projected that Africa’s digital economy could expand from an estimated $180 billion today to $712 billion by 2050 if governments fully implement the AfCFTA Digital Trade Protocol.
“The future of African trade is digital, and that future is no longer a distant aspiration. It is already unfolding across our continent. For the first time in a long time, Africa is not merely participating in global digital trade. We are shaping what digital trade in Africa will become, on our own terms,” Mr. Mene said.
He commended Nigeria for taking a leadership role in advancing the agreement, noting that the country serves as one of the AfCFTA Digital Trade Co-Champions alongside Kenya and South Africa and is the first country to secure parliamentary approval for ratifying the Digital Trade Protocol.
Mr. Mene also pointed to digital financial services as one of the continent’s biggest competitive advantages.
“Africa today accounts for roughly 70 percent of the world’s total mobile money transaction value. Unlocking mobile money across borders will unleash an explosion in intra-African trade, create millions of jobs and generate wealth for our people,” he said.
