Stakeholders express concern over low AfCFTA utilisation

The Network of Practising Non-Oil Exporters of Nigeria (NPNEN) has expressed concern that exporters’ usage of the African Continental Free Trade Area (AfCFTA) remains very low, despite the N12.36 trillion non-oil export number recorded last year.

This was stated in the organisation’s market survey, which was conducted with support from the UK International Development and based on four primary data sources – desk review, exporter survey, key informant interviews and a multi-location validation workshop.

The survey admitted that while official data in Nigeria show rising non-oil export values and expanding destination markets, findings revealed a highly skewed export structure dominated by micro-scale exporters, with a pronounced missing middle between low-value and high-value export performers.

Part of the survey’s key findings said 66 per cent of exporters operate below $50,000, confirming a highly fragmented and micro-scale export structure.

Also, 62 per cent of export constraints originated before the border, indicating that domestic bottlenecks are the primary barrier to export performance in Nigeria.

Similarly, 50 per cent of exporters recorded at least one shipment in the last 24 months, highlighting irregular and inconsistent export activity.

It noted that 34 per cent of exporters identified shipping costs as a major constraint, reinforcing logistics as a critical competitiveness issue. About 37 per cent are said to frequently experience limited access to working capital, showing finance as a recurring operational barrier.

About 50 per cent of women-led exporters achieved at least one export transaction, demonstrating strong participation but limited scale, it noted.

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