The Federal Government has declared that the true engine of the $3.5 trillion AfCFTA market will be small businesses.
The Federal government made this known on Monday when it launched a strategic report titled Cross-Border Digital Payments and Identity in Nigeria under the AfCFTA, marking a significant step toward integrating Nigerian businesses into the $3.5 trillion African Continental Free Trade Area (AfCFTA) market.
Unveiled on Monday in Abuja by the Deputy Chief of Staff to the President, Senator Ibrahim Hassan Hadejia, the report was developed by the Office of the Vice President in collaboration with ODI Global under the Supporting Investment and Trade in Africa (SITA) programme.
The research provides a comprehensive framework for addressing the long-standing barriers to intra-African trade, specifically focusing on the intersection of digital identity and payment systems.
Senator Hadejia characterized the report as a timely and strategic milestone that follows the recent launch of Nigeria’s Digital Trade Strategy.
He emphasized that for Nigeria to maintain its leadership role in the continental digital trade agenda, it must prioritize the creation of seamless transaction environments for Micro, Small, and Medium Enterprises (MSMEs).
According to the report, efficient cross-border payments underpinned by trusted digital identity systems are essential to realizing the “Renewed Hope” vision for Nigerian small businesses.
A key finding of the report identifies the Pan-African Payment and Settlement System (PAPSS) as a critical infrastructure for these transactions.
However, it also highlights the pivotal role that Nigerian fintech innovators, such as PalmPay and Moniepoint, will play in driving the widespread adoption of these digital tools.
Addressing the technical barriers identified in the research, the Special Adviser to the President on Job Creation and MSMEs, Temitola Adekunle-Johnson, noted that cross-border trade in Africa has historically been informal and inefficient.
He explained that the report leverages the advancements in Nigeria’s Bank Verification Number (BVN) and National Identification Number (NIN) systems to propose a more structured and transparent trade ecosystem.
The launch event was attended by high-level stakeholders, including representatives from the National Information Technology Development Agency (NITDA), the National Identity Management Commission (NIMC), and AfCFTA officials.
Salihu Dasuki, Special Assistant to the President on ICT Policy, added that the Office of the Vice President has already begun implementing a framework based on this research to fast-track payment access for MSMEs, ensuring that digital trade becomes a practical reality rather than a theoretical agreement.