- March 31, 2026
- Posted by: AITCR 3
- Category: News
A new report co-produced by Africa International Trade & Commerce Research (AITCR), ODI Global, AfriBorder and Kickoff Africa takes a hard look at where Nigeria stands, and what must change.
Nigeria is not short on ambition when it comes to digital trade. In the first half of 2024 alone, the country processed approximately 22 billion electronic transactions valued at ₦1,558 trillion. Its fintech sector is the largest on the continent. The African Union has formally designated it an AfCFTA Digital Trade Co-Champion. And with over 118 million National Identification Numbers enrolled and 22 commercial banks connected to the Pan-African Payments and Settlement System (PAPSS), Nigeria leads Africa in several key digital infrastructure metrics.
So why do 80% of Nigerian businesses still experience recurring delays when receiving payments from other African countries?
The Gap Between Domestic Strength and Continental Readiness
Nigeria’s domestic digital payments ecosystem is genuinely impressive. Real-time infrastructure anchored by the NIBSS Instant Payment (NIP) platform, a vibrant and innovative private sector, and a rapidly expanding agent banking network have collectively built a payments environment that is fast, high-volume and increasingly inclusive.
But here is the uncomfortable truth the report surfaces: the systems powering Nigeria’s domestic transactions are not the same systems enabling continental trade, and the gap between the two is wider than most policymakers and businesses realise.
The core problem is not missing infrastructure. It is misalignment, across corporate identity systems, payment platforms, regulatory frameworks and governance institutions that were each built to serve a domestic purpose but have not been designed to work together across borders.
What the Data Reveals
The report draws on desk research, two stakeholder roundtables in Abuja and Lagos, and a survey of 108 ecosystem actors from Nigeria’s public and private digital trade landscape.
On corporate digital identity, Nigeria’s businesses operate within what the report describes as a “noodle bowl” of overlapping identifiers, CAC registration certificates, Tax Identification Numbers (TINs), Bank Verification Numbers (BVNs), SCUML certificates, NINs and, for some, D-U-N-S and SAM numbers. Each is held by a different agency. None are fully integrated for real-time, automated cross-border verification. And only 561 Nigerian firms, out of over 3 million registered entities, hold a Legal Entity Identifier (LEI), the globally recognised corporate identity standard used in international trade. Zero percent of surveyed businesses reported using the African Entity Identifier (AEI), developed specifically for AfCFTA trade.
On cross-border payments, the picture is equally challenging. Average remittance costs stand at 8.29%, nearly three times the UN Sustainable Development Goal target of 3% and above the global average of 6.4%. Foreign exchange constraints, manual documentation requirements and fragmented regulatory frameworks mean that many banks and fintechs continue to rely on correspondent banking relationships and international money transfer operator channels rather than direct continental settlement platforms, adding cost, delay and uncertainty at every step.
On awareness, the report finds that 71% of Nigerian businesses are only slightly or not at all familiar with the AfCFTA Digital Trade Protocol. This is perhaps the most consequential finding of all: a framework designed to unlock continental digital trade is largely unknown to the private sector actors it is meant to serve.
Why This Matters for SMEs
Nigeria’s micro, small and medium-sized enterprises make up approximately 96% of all firms, contribute roughly half of GDP and employ over 84% of the workforce. They are the backbone of the Nigerian economy, and the group most exposed to the frictions the report describes.
Unlike large corporations, SMEs cannot afford dedicated compliance infrastructure or regulatory technology solutions. They face the same verification requirements and documentation burdens as larger firms but lack the resources to absorb them. As a result, many are pushed toward informality, bypassing the formal cross-border trade channels that would otherwise give them access to finance, markets and legal protection. The report is clear: without deliberate intervention, SMEs will be left behind as AfCFTA digital trade scales.
The Path Forward
The good news is that Nigeria has most of the raw material it needs. The report is not calling for new infrastructure to be built from scratch, it is calling for existing systems to be connected, aligned and opened up.
On the domestic side, the priority is integrating corporate identity data across CAC, NIMC, FIRS, NIBSS and financial institutions, enabling businesses to present reusable, verified digital credentials rather than re-submitting the same information to multiple agencies repeatedly. PAPSS transaction thresholds, currently set at $2,000 for individuals and $5,000 for businesses, need to be reviewed upward to reflect the realities of routine trade. Fintech access to continental payment rails should be expanded, and SME-facing awareness and onboarding support must be built into trade promotion programmes.
At the continental level, Nigeria must champion mutual recognition frameworks for digital corporate credentials, pursue regulatory passporting arrangements with AfCFTA partners to reduce duplicative licensing burdens, and leverage its advanced data protection law, the Nigeria Data Protection Act 2023, to negotiate data adequacy agreements that make lawful cross-border identity verification possible.
AITCR’s Role and Commitment
AITCR led the primary research and stakeholder engagement for this report, facilitating roundtables with senior government officials, regulators, fintech leaders, banks and trade associations across Abuja and Lagos, and synthesising the findings into actionable policy recommendations. This work is a direct expression of our mission: to produce rigorous, evidence-based research that drives real change in African trade policy and practice.
We believe Nigeria’s moment is now. The AfCFTA offers an unprecedented opportunity to turn domestic digital strength into continental trade leadership. But seizing that opportunity requires honesty about the gaps, urgency about the reforms, and coordination among the institutions that hold the pieces of this puzzle.
📧 Engage with us: info@africainternationaltrade.com 🌐 www.africainternationaltrade.com
