As the African Continental Free Trade Area (AfCFTA) transitions from ambition to implementation, Nigeria stands at the forefront of the continent’s digital transformation.

Recognised as an AfCFTA Digital Trade Champion and boasting one of Africa’s most vibrant fintech ecosystems, leading real-time payment infrastructure and rapidly expanding digital identity systems, Nigeria is uniquely positioned to shape how the AfCFTA Digital Trade Protocol (DTP) becomes a reality.

But infrastructure alone is does not guarantee success.

This report examines why Nigeria’s thriving domestic digital economy has not yet translated into frictionless continental trade. Drawing on extensive desk research, stakeholder roundtables in Abuja and Lagos, and a survey of key ecosystem actors, it finds that the constraint is not weak infrastructure, but fragmentation..

Corporate identity systems remain underdeveloped and siloed. Regulatory processes are not sufficiently aligned. Verification and compliance checks slow transactions that should move in seconds. As a result, businesses – especially SMEs which account for 96% of Nigerian businesses – face delays, duplication and unnecessary costs when trading across African borders.

The report sets out a practical roadmap for change. It calls for stronger inter-agency coordination, interoperable and reusable corporate digital identity systems, SME-friendly cross-border payment pathways, and deeper continental cooperation –including mutual recognition of digital credentials and regulatory passporting.

Crucially, the solution does not require building new systems from scratch. It requires connecting, harmonising and scaling the robust infrastructure Nigeria already possesses.

Nigeria has the scale, capability and continental influence to shape Africa’s digital trade future. The question is whether its systems can be aligned quickly enough to unlock that opportunity.

Report by the Overseas Development Institute