Key points:
- Nigeria champions AfCFTA’s digital trade, fostering economic growth
- Digital services create jobs, boost innovation, and drive exports
- Policy alignment, infrastructure, and capacity building are key
AFRICA’S digital trade and trade in services landscape has experienced transformative growth over the past decade. Digital technologies are reshaping the continent’s economies, unlocking new pathways for sustainable growth, job creation, and poverty reduction. As the African Continental Free Trade Area (AfCFTA) Agreement and its Protocols gain traction, they are becoming pivotal in enhancing intra-African trade, fostering economic diversification, and driving development.
In this context, the AfCFTA Protocol on Digital Trade, the first of its kind globally, and the Protocol on Trade in Services emerge as critical tools. They represent an inflection point in Africa’s economic journey, offering unprecedented opportunities to leapfrog traditional barriers and position the continent as a dynamic player in the global digital economy.
The promise of digital trade and trade in services for Africa
According to the African Development Bank (AfDB), the AfCFTA is expected to increase intra-African trade from 18 percent in 2022 to 50 percent by 2030. Digital trade is at the heart of this transformation, with Africa’s internet economy projected by the International Finance Corporation to contribute 5.2 percent of the continent’s GDP by 2025. Digital technologies are helping to diversify African economies, enhance competitiveness, and improve productivity.
The continent’s digital economy is projected to reach $180bn by 2025, up from $115bn in 2020. This growth is not merely statistical—it represents millions of new job opportunities, expanded trade across borders, and greater financial inclusion. The World Bank estimates that digital technologies could create over 10 million new jobs in Africa by 2025, particularly within the services sector.
The AfCFTA is a catalyst for this growth, fostering a single market of 1.4 billion people, with the services sector leading GDP contributions across many African economies. This is more than trade; it’s about building resilient economies driven by knowledge, innovation, and digital connectivity.
Nigeria’s role as Africa’s digital trade champion
Nigeria stands at the forefront of Africa’s digital trade revolution. As the continent’s largest economy and home to over 109 million internet users, Nigeria is uniquely positioned to lead Africa into this new era. Our strategy is clear: we aim to ratify the Protocol on Digital Trade under the AfCFTA, align national regulations with regional frameworks, and expand digital infrastructure through public-private partnerships.
With initiatives like the National Talent Export Programme (NATEP), launched in 2023, Nigeria is enabling young professionals to access global marke
ts. Our thriving fintech sector, home to five of Africa’s nine unicorns—including Flutterwave, Interswitch, and OPay—demonstrates Nigeria’s leadership in innovation and cross-border digital services.
Furthermore, Nigeria’s creative economy, epitomised by Nollywood and Afrobeats, highlights the power of digital platforms in turning cultural assets into globally exportable services. Companies like Andela and Esusu, valued at over $1bn each, showcase Nigeria’s capacity to nurture scalable tech enterprises that address both local and global needs.
Transforming challenges into opportunities
While the potential is vast, challenges remain. Regulatory fragmentation, limited access to financing, infrastructure gaps, and a persistent digital skills deficit hinder the growth of digital trade in Africa. Cybersecurity threats also pose risks to trust in digital transactions.
However, Nigeria is actively addressing these issues:
- Regulatory harmonisation: Through the AfCFTA framework, Nigeria is working to streamline digital trade regulations across borders.
- Digital infrastructure expansion: Investments in broadband and connectivity, including the National Broadband Plan, are improving internet access nationwide.
- Capacity Building: Initiatives like the Three Million Technical Talent Program (3MTT) are bridging the digital skills gap, equipping Nigerian youth for high-demand digital jobs.
- Cybersecurity: Strengthening data protection and cybersecurity frameworks to build trust in digital ecosystems.
Driving economic growth through digital trade
Nigeria’s digital economy contributes over 50 percent to the country’s GDP, led by services such as fintech, professional consulting, e-commerce, and creative industries. The fintech market alone is projected to reach $3.3bn by 2025. Companies like Chipper Cash and OPay are revolutionising financial services across the continent.
Our automotive sector is equally dynamic. The Presidential Compressed Natural Gas Initiative (PCNGI) aims to convert 150,000 vehicles to CNG by 2024, promoting sustainable mobility. Meanwhile, local manufacturers like Innoson Vehicle Manufacturing (IVM) are pioneering electric vehicle (EV) production, reducing reliance on petrol and fostering green innovation.
Moreover, Nigeria’s e-commerce sector, projected to hit
$75bn by 2025, according to McKinsey, is driven by platforms like Jumia and Konga, which are creating jobs, facilitating cross-border trade, and connecting Nigerian products to global markets.
A blueprint for Africa’s digital future
To fully harness the AfCFTA’s potential, Nigeria is committed to a three-pillar approach:
- Policy plignment and regulatory reforms
- Ratification and domestication: Fast-tracking the adoption of the Protocol on Digital Trade and aligning national laws with AfCFTA provisions.
- Harmonisation: Ensuring coherence between national strategies and AfCFTA frameworks to eliminate trade barriers.
- Strategic partnerships and multi-stakeholder collaboration
- Public-private partnerships: Leveraging investments to build digital infrastructure and expand broadband access.
- Regional integration: Deepening collaboration with ECOWAS, Afreximbank, and the AfCFTA Secretariat to promote seamless cross-border trade.
- Capacity building and skills development
- Digital literacy: Scaling programs to enhance digital skills among youth and entrepreneurs.
- Innovation hubs: Supporting startups and SMEs through funding, mentorship, and access to global markets.
A call to action
The AfCFTA’s Protocol on Digital Trade is a transformative tool for Africa’s economic future. However, its success depends on collective action. Governments must prioritise regulatory reforms, the private sector should invest in innovation, and development partners must support capacity-building initiatives.
Nigeria is ready to lead this charge. Our vibrant tech ecosystem, entrepreneurial spirit, and strategic policy initiatives position us not just as participants but as champions of Africa’s digital economy.
As we look ahead to the 38th Ordinary Session of the African Union Assembly in February 2025, Nigeria stands committed to advancing the digital trade agenda. President Bola Ahmed Tinubu’s leadership reflects our determination to position Nigeria—and Africa—as a global digital powerhouse.
Together, we can transform Africa from a continent of potential to one of prosperity.
Innovate! Invest! Digital Trade Now!
