Nigeria pushes for stronger West African trade

…Says trading at less than 10% not good for region

Nigeria has called for stronger policy reforms in West Africa to boost regional trade and unlock cross-border supply chains.

But the nation says achieving that objective requires harmonising product standards to boost regional supplies, aligning customs procedures to reduce delays, adopting paperless trade to quicken trade processes, and eliminating corruption to instil investor confidence.

Speaking at the West African Economic Summit held in Abuja on Friday, Jumoke Oduwole, minister of industry, trade and investment, challenged member states of the Economic Community of West African States (ECOWAS) to move beyond the rhetoric and take ownership of the region’s economic future through coordinated actions, investments, and political will.

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Oduwole emphasised that while the region faces major development challenges, the opportunities are even greater, particularly if countries work together with a unified purpose.

The minister said West Africa, with its population of over 400 million people and a shared legacy of enterprise and resilience, holds enormous potential for trade-led growth.

She pointed out that intra-regional trade remains alarmingly low, accounting for less than 10 percent of the region’s total trade volume.

This is far behind other regions, such as Asia and Europe, where internal trade exceeds 50 percent.

According to Oduwole, “The inability of regional businesses to scale is rooted in fragmented markets, persistent tariff and non-tariff barriers, and inconsistent customs procedures that discourage cross-border commerce.”

She noted that while the ECOWAS Trade Liberalization Scheme and the Common External Tariff have made some progress, “much more is needed to build a single, functioning West African market.”

She argued that harmonising standards, improving customs operations as well as creating paperless, predictable trade systems are essential steps toward regional integration.

She highlighted Nigeria’s efforts to reverse this trend by committing fully to regional trade protocols and implementing reforms that facilitate intra-African trade under the African Continental Free Trade Area (AfCFTA).

She recalled that in April 2025, Nigeria submitted its provisional tariff concessions under AfCFTA, following approval by President Bola Tinubu.

This milestone, according to her, was announced at the 16th AfCFTA Council of Ministers in Kinshasa, Democratic Republic of Congo (DRC).

During the same meeting, Nigeria, as co-champion of the AfCFTA Protocol on Digital Trade, presented a detailed strategy to drive digital commerce across the continent.

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Nigeria’s reforms

Oduwole said Nigeria’s recent fiscal, monetary, and trade policy reforms such as subsidy removals, exchange rate unification, and institutional strengthening are positioning the country as a premier investment destination.

These reforms, she noted, are beginning to bear fruit, “with sovereign credit ratings upgraded and inflation showing early signs of moderation. Investor confidence is returning, with over $50 billion in strong investment interest recorded since May 2023.”

But the minister emphasised that beyond the numbers, Nigeria is building a more agile, investable, and regionally connected economy.

Oduwole argued that “scaling businesses across borders will require substantial investment in infrastructure, logistics, ports, and digital trade platforms.”

She underscored the need to improve access to finance, especially for women and youth-led enterprises, and provide producers with data and trade intelligence that help them to navigate regional demand, pricing, and opportunities.

Oduwole announced that Nigeria has also launched a new Nigeria East and South Africa air cargo corridor through a partnership with the UNDP Regional Bureau for Africa and Uganda Airlines.

Ibrahim Gumel, a trade expert, noted that informal trade policies have over the years continued to create bottlenecks and obstacles to inter-regional trade in West Africa.

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Gumel called for improvements in free movement of resources to allow for a more efficient trade system.

Earlier, Bianca Odumegwu-Ojukwu, minister of state for foreign affairs, had emphasised West Africa’s longstanding history of mobility, trade, and cultural exchange.

She said the region’s shared commodities and interconnected markets had forged a common identity and fostered an environment of free trade.

She noted that West African industries had already demonstrated their ability to scale and lead in sectors such as banking, digital services, agriculture, and extractives.