Economy
AfCFTA a strategic tool for reducing trade barriers—Sanwo-Olu
Lagos State Governor Babajide Sanwo-Olu has has urge Nigeria and Africa Private sector operator to recognize that the African Continental Free Trade Area (AfCFTA) is a strategic tool for reducing trade barriers, expanding markets, and offering value chains room to expand.
But its success lies in private sector buy-in. Governments can negotiate tariffs and treaties, but businesses must produce, export, invest, and believe in cross-border possibilities. That belief must persist even in the face of global uncertainty: volatile currency, supply chain shocks, regional instability.
Speaking at the at the NEPAD Business Group Nigeria High Level Business Forum at Eko Hotel and Suites Sanwo-Olu said “here in Lagos, we understand the power of private enterprise. From thriving tech ecosystem in Yaba, to our deep-sea port in Lekki, to our industrial zones across the state, we are building an economy that encourages innovation, trade and investment.
We have created platforms where public policy meets private vision – and where businesses are given the freedom to thrive. Lagos state Government continues to invest in critical infrastructure, improve transport connectivity, strengthen logistics chains, and build the digital backbone that modern trade requires. These are not isolated actions; they are deliberate steps to align Lagos with the broader vision of AfCFTA – an Africa that trades more with itself, competes globally, and prospers collectively.
“The world today faces constant changes – shifting trade patterns to inflation. Climate concerns, and unpredictable political tensions. These global uncertainties challenge economics everywhere. Yet for Africa, they also present a chance to rethink how we trade, how we produce, and how we build resilience through cooperation. The African Continental Free Trade Area, AfCFTA, gives us that platform – a bold vision to unite our markets, remove barriers, and create wealth across the continent. But the success of AfCFTA depends largely on how we mobilize our private sector – the true engine of job creation, Innovation, and productivity.
To make AfCFTA work in Africa in these uncertain times, we must focus on a few key solutions; Empowering Small and Medium Enterprises (SMEs). They are the heartbeat of Africa’s private sector, they create jobs and sustain communities, therefore, to empower them, we must improve access to finance, mentorship, and technology. Lagos has been championing this through initiatives like Lagos the State Employment Trust Fund (LSETF), which provides capital and training to entrepreneurs. Scaling such initiatives across Africa will help SMEs benefit directly from AfCFTA.
“Digital trade, e-commerce and fintech are changing how business is done. Africa must embrace technology to simplify cross-border transactions and improve efficiency. Lagos is already leading in this space as the tech capital of Nigeria – a model that can inspire other regions.
This is the time for collaboration, not competition; for unity; not isolation. If we succeed in mobilizing our private sector effectively, Africa will be able to overcome global uncertainty, emerge stronger, richer, and more self-reliant. As leaders, investors, and stakeholders gathered here today, our duty is to make that vision real. I want us to take this forum as a call to action to turn Africa’s potential into prosperity”.
In his goodwill message Dr. Abdulrashid Ibrahim Usman Yerima, President, NASME President/Chairman said “Today, we are not simply convening for discussion—we are aligning our purpose, rallying our energies, and committing to the hard work of shaping Africa’s future. At a time when global economic currents are volatile and the contours of trade and finance are shifting rapidly, the opportunity before us is both profound and urgent.
The African Continental Free Trade Area (AfCFTA) stands as one of the most ambitious instruments of collective empowerment ever conceived on our continent. It offers us the chance to transform fragmented national markets into a unified, dynamic economic zone—one that harnesses our human capital, natural resources, innovation and enterprise. Industrialization, entrepreneurship, and innovation remain the pillars upon which strong, prosperous nations are built. As private‑sector leaders—the employers of labour, the designers of value chains, the creators of opportunity—we bear the responsibility to lead Africa out of the periphery and into relevance.
Our task is to move from aspiration to achievement, from potential to performance. “It is therefore critical that we link our vision for AfCFTA with concrete global frameworks, so that Africa’s private sector is not only regionally integrated but globally competitive. On that front I would like to highlight the OECD Digital for SMEs Global Initiative (D4SME), a worldwide collaborative knowledge platform which supports small and medium‑enterprises in their digitalisation journey. By connecting Africa’s SME ecosystem to such global initiatives, we anchor our strategy in world‑class practice and unlock access to knowledge, partnerships and resources that will raise our competitiveness. We must also build the associative capacity of MSMEs engaged in production and trade.
Collective strength is vital — because no SME can scale alone in a continental market of 1.4 billion people. We need sustained support for strengthening MSME cooperatives, clusters, associations, and industrial networks under AfCFTA governance structures. As those who guided the development of the ECOWAS MSME Charter, it is my responsibility — and our collective mandate — to ensure that its principles are cascaded effectively across all African sub‑regions, so that MSMEs are not left behind but fully empowered to drive the industrialization of our continent. Let us commit together to: - Prioritize trade among African nations before we trade with the world - Strengthen regional value‑chains - Bridge the financing gap that suppresses SME growth - Embrace digitalisation, technology adoption and certification standards
The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.
The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.
He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.
“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”
Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”
The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.
With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.
Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years. The approval followed Wednesday’s FEC meeting presided over by President Bola Tinubu at the State House, Abuja. The Minister of Budget and Economic Planning, Senator Atiku Bagudu made this known after the meeting.
The Minister said the Federal Government is projecting a total revenue inflow of N34.33 trillion in 2026, including N4.98 trillion expected from government-owned enterprises. Bagudu said that the projected revenue is N6.55 trillion lower than earlier estimates, adding that federal allocations are expected to drop by about N9.4 trillion, representing a 16% decline compared to the 2025 budget.
He said that statutory transfers are expected to amount to about N3 trillion within the same fiscal year. On macroeconomic assumptions, FEC adopted an oil production benchmark of 2.6 million barrels per day (mbpd) for 2026, although a more conservative 1.8 mbpd will be used for budgeting purposes. An oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar were also approved.
Bagudu said the exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections. He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.
The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies. Bagudu said FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, the Senate approved the external borrowing plan of $21.5 billion presented by President Tinubu for consideration The loans, according to the Senate, were part of the MTEF and Fiscal Strategy Paper (FSP) for the 2025 budget.
The spot rate on Nigerian Treasury bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury bills with one-year maturity has now surpassed Nigeria’s 16.05% inflation by 145 basis points following a recent decision to keep the policy rate at 27%.
The Apex Bank came to the primary market with N700 billion Treasury bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.
Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90% of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.
The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30%, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50%, the same as the previous auction.
Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50%, up from 16.04% at the previous auction.
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