FG Targets MSMEs’ Access to $3.5trn AfCFTA Market, Launches Cross-border Digital Payments Report

Deji Elumoye in Abuja

The federal government has launched the “Cross-Border Digital Payments and Identity in Nigeria Under the AfCFTA” report, urging stakeholders to unlock trade opportunities for Micro, Small and Medium Enterprises (MSMEs) to access the $3.5 trillion African Continental Free Trade Area (AfCFTA) market.

The high-level report, hosted by Office of the Vice President, in collaboration with ODI Global, under the Supporting Investment and Trade in Africa (SITA) programme, was unveiled on Monday by Deputy Chief of Staff to the President, Ibrahim Hadejia, in Abuja.

Hadejia described the research as both timely and strategic, highlighting the strong coordination by Office of the Vice President and the leadership of Federal Ministry of Industry, Trade and Investment.

He disclosed that the cross-border payments report followed earlier milestones, including the development and launch of Nigeria’s Digital Trade Strategy and a capacity-building programme for subnational leaders.

According to him, Nigeria is increasingly assuming a leading role in shaping the digital trade agenda across the African continent, necessitating that the country remains at the forefront of AfCFTA implementation.

Hadejia said deepening engagement with AfCFTA and enabling businesses, particularly SMEs, to conduct seamless cross-border transactions will be critical to unlocking trade, fostering growth, and creating jobs.

He stated that efficient cross-border payments, supported by trusted digital identity systems, as recommended in the report, will be key to realising President Bola Tinubu’s Renewed Hope vision for Nigerian MSMEs.

Hadejia also observed that while the report identified the Pan-African Payment and Settlement System as a critical platform for cross-border digital payments, Nigerian fintech firms, such as PalmPay and Moniepoint, which had some of the largest and most active user bases, will play a pivotal role in driving adoption.

He assured that the federal government remained committed to strengthening critical infrastructure, regulatory frameworks, and partnerships to ensure Nigeria was not only ready for digital trade but also continued to lead.

“I appreciate the efforts of all stakeholders and urge us to move AfCFTA beyond a continental agreement to a $3.5 trillion trade juggernaut that will reinvigorate our industries, unlock intra-African trade, and domesticate African prosperity,” he added.

Hadejia stated that intra-African trade will be driven not only by large corporations but also by small businesses empowered through digital trade and e-commerce. He said issues of trust, identity, and logistics, as highlighted in the report, must be addressed.

Commenting on the report, Special Adviser to the President on Job Creation and MSMEs, Temitola Adekunle-Johnson, said the report would significantly strengthen the MSME ecosystem.

Adekunle-Johnson explained that cross-border payments in Nigeria and across Africa had historically been largely informal and inefficient, said the emergence of the Bank Verification Number (BVN) and National Identification Number (NIN) systems was changing the landscape.

Adekunle-Johnson expressed optimism that the report’s findings and recommendations would enable Nigerian SMEs to achieve seamless access to continental markets.

Earlier, Special Assistant to the President on ICT Policy, Office of the Vice President, Salihu Dasuki, disclosed that the office, in partnership with development partners, had developed a framework to fast-track seamless cross-border payments for MSMEs.

Dasuki added that a key pillar of Tinubu’s Renewed Hope Agenda was enabling Nigerians to access digital trade. He said this was what informed the capacity-building programme conducted for subnational governments last year.

Special Assistant to the President on Project Support, Office of the Vice President, Shuda Ahmed, commended ODI Global for leading the research underpinning the report.

Ahmed stated that without seamless and affordable cross-border payment systems, MSMEs across the continent would be unable to scale beyond their domestic markets.

The event was attended by officials of ODI Global, representatives of AfCFTA, National Information Technology Development Agency (NITDA), National Identity Management Commission (NIMC), Nigerian Petroleum Development Company (NPDC), Federal Competition and Consumer Protection Commission (FCCPC), and MSMEs, among other key stakeholders.