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Home » Nigerian Exporters Reject AfCFTA over Poor Infrastructure, Dollar Dependence, Policy Gaps  

Nigerian Exporters Reject AfCFTA over Poor Infrastructure, Dollar Dependence, Policy Gaps  

By Joshua Yousouph

by Joshua
June 30, 2025
in Featured, News

Despite Nigeria’s high-profile commitment to the African Continental Free Trade Area (AfCFTA), exporters and maritime stakeholders have openly expressed their disinterest in the platform, citing a range of unresolved structural, infrastructural, and procedural challenges. These include inadequate transport systems, over-reliance on the dollar, weak engagement with real industry stakeholders, and government failure to follow established procedures.

Intra-Africa trade exporters who spoke to Shipping Position Daily last week voiced strong reservations about the viability of AfCFTA for local exporters, noting that until necessary infrastructure and policies are in place, Nigerian exporters would continue to focus on regional and domestic markets rather than engage in broader African trade.

Recall that findings by Shipping Position Daily had revealed that Nigeria’s first trade transaction with Kenya under the African Continental Free Trade Area (AfCFTA), which left Apapa port in Lagos, recently, took approximately 50 days to arrive at its destination in Kenya, despite both countries belonging to the same continental free trade bloc.

This was according to Mr. Olusegun Olutayo, a senior trade expert and representative of Nigeria’s AfCFTA National Coordinator, Mr. Olusegun Awolowo, who spoke during the recent Afro-Caribbean Trade and Investment Forum which was held in St. Kitts and Nevis.

This revelation has further sparked broader concerns among local exporters who remain hesitant to adopt the continental trade agreement due to uncertainty around its operational framework, regulatory clarity, and alignment with national trade interests.

Speaking with our correspondent last week, a prominent Nigerian exporter and Executive President of West African Association for Cross-Border Trade in Agro-forestry-pastoral and Fisheries Products (WACTAF), Alhaji Salami Nasiru revealed that he and many others have deliberately refrained from engaging with the platform, noting that key enabling conditions such as infrastructure, currency policy, and regional coordination are not yet in place.

Alhaji Nasiru expressed strong concerns about Nigeria’s over-dependence on the U.S. dollar for trade within Africa and referenced past initiatives such as the push for establishing regional trade houses that were abandoned, leaving exporters with little to rely on.

He recounted his experience exporting goods to countries like Liberia, describing long delays of up to five months before goods arrived. He further condemned the absence of proper infrastructure along the key West African trade corridors, particularly the Lagos–Seme axis, and questioned the relevance of attending trade meetings and summits that fail to address ground realities.

Alhaji Nasiru also disclosed that there are now negotiations on sending those cargoes to other African Countries through by air but questioned the competitiveness of such venture adding that there is no point exporting goods through AfCFTA without having profit from it.

“So, I think, for me, I’m not interested in trading with African Continental Free Trade, because I want to make sure that I capture my region. I want to make sure that people know my market, because the West African market is about 400 million, compared to other countries, and when you are talking about this trade, Nigeria represents 70%. Lagos Corridor represents 90 percent volume of trade. Where are the road infrastructures?

“First of all, I have to capture the Nigerian market. That is what I’m trying to do now, with my group. And we are trying to see how we can capture Nigeria market, after capturing Nigeria market through the regional market; I can now come back and talk about West Africa. When your product is well-known in your country, the market is here in Nigeria. So, that is the situation that we are having. For me, I’m not yet interested in AfCFTA” Nasiru said.

Also speaking, President of the Association of West African Exporters and Marine Professionals (AWAEMAP), Mr Olubunmi Olumekun lamented the growing disconnect between policy formulation and operational practice in Nigeria’s logistics sector.

According to him, government officials often ignore expert advice from veterans in the industry, opting instead for approaches that do not align with practical realities on the ground. He emphasized that most of the decisions being made at the national level are not rooted in industry realities and criticized what he described as improper channels being used for implementation.

Olumekun also pointed out that Nigeria’s failure to develop and maintain its own shipping fleet has limited its competitiveness. He advocated for the revival of small vessels and barges that once enabled cargo movement across the West African coast without reliance on European freight systems.

He argued that Nigeria could access several West African ports through inland and coastal routes without venturing into the open ocean, but these practical solutions are often overlooked.

“We always hear about new policies in newspapers or on radio, but the people who are supposed to be champions of these issues have become anonymous. Our contributions are not even considered. We’ve been in business for over 30 years. We know what we are doing and we know what we are saying. But no one is listening.

“I’ve personally moved barges to Togo and back. They worked there for months and earned money, but no one is taking note of that. We have alternative routes that can connect us to West African ports without even going through the open ocean, yet our advice is consistently ignored,” Olumekun noted.

On his part, a prominent exporter and Chief Executive Officer of Hallmark Investment, Alhaji Nofiu Inaolaji revealed that he is yet to engage with the AfCFTA, expressing skepticism over the platform’s practicality and impact despite the widespread public discourse surrounding it.

Alhaji Inaolaji stated that he has not conducted a single transaction through the AfCFTA framework and remains in the process of critically assessing its structure, effectiveness, and relevance to his export operations.

He also questioned the level of excitement and public attention AfCFTA has attracted in Nigeria, drawing parallels with previous regional trade initiatives such as the ECOWAS Trade Liberalisation Scheme (ETLS), which, according to him, delivered more noise than impact.

While he did not dismiss AfCFTA entirely, his position reflects a broader trend of cautious observation rather than enthusiastic participation among many Nigerian exporters.

“I’ve never been involved with that particular body (AfCFTA). I’m still studying them. Actually, I’ve never had a single transaction with them. I’m still studying it. You know, Nigeria can make a noise. That’s what I’m saying.

“You know, we have similar experience before with the ETLS and everything. And I don’t know why there is so much noise about this AfCFTA.  But, you know, anyway, I haven’t done any more transactions with them. I’m still studying them”he disclosed.


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