Trade Integration and Industrial Development in Nigeria: Assessing the Implications of the African Continental Free Trade Area (AfCFTA)
Felix, Nanwul Diyemang
Department of Economics, University of Jos, Nigeria
Bolaji, Eunice Kehinde
Department of Economics, Federal University of Education, Zaria, Nigeria
Alkali, Priscilla Nguumbur
Department of General Studies, National Institute for Leather and Science Technology
Abstract
The African Continental Free Trade Area (AfCFTA) represents one of Africa's most ambitious economic integration initiatives, with significant implications for trade expansion, industrialization, and structural transformation. This study examines the implications of AfCFTA for trade integration and industrial development in Nigeria using a policy-oriented secondary data approach. Data were obtained from the Central Bank of Nigeria, National Bureau of Statistics, Nigerian Export Promotion Council, United Nations Conference on Trade and Development, African Union publications, and relevant peer-reviewed literature. The analysis combined descriptive statistics, comparative policy analysis, qualitative content analysis, and SWOT analysis to assess Nigeria's preparedness for AfCFTA implementation. The findings indicate gradual improvements in Nigeria's intra-African trade participation and manufacturing diversification. However, persistent challenges, including inadequate infrastructure, unreliable electricity supply, regulatory inefficiencies, limited access to finance, and weak industrial competitiveness, continue to constrain the country's ability to maximize the benefits of continental trade liberalization. The study further reveals that achieving the full industrial potential of AfCFTA requires complementary domestic reforms aimed at strengthening productive capacity, improving the business environment, deepening regional value-chain integration, and enhancing institutional coordination. By jointly assessing trade performance, industrial readiness, and policy capacity, the study provides a comprehensive policy perspective to support strategic industrial development and Nigeria's effective participation in the AfCFTA framework.
Keywords: African Continental Free Trade Area (AfCFTA); trade integration; industrial development; Nigeria; manufacturing competitiveness; regional value chains; policy analysis.
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