The Federal Government has introduced a new report aimed at improving cross-border digital transactions and expanding Nigeria’s participation in Africa’s growing trade market. The initiative is designed to help businesses, especially small and medium enterprises, tap into the vast opportunities created by the African Continental Free Trade Area.
The report, titled “Cross-Border Digital Payments and Identity in Nigeria under the AfCFTA”, focuses on removing barriers that limit seamless financial transactions across African countries. It was developed through a collaboration between the Office of the Vice President and ODI Global under the Supporting Investment and Trade in Africa programme.
Officials say the document is part of a broader effort to strengthen Nigeria’s digital trade strategy and position the country as a key player in Africa’s economic integration. The report was unveiled in Abuja by the Deputy Chief of Staff to the President, Ibrahim Hassan Hadejia, who highlighted its importance to national development.
According to him, improving payment systems across borders is essential for unlocking trade potential within the continent. He noted that Nigeria is taking a leadership role in shaping Africa’s digital trade landscape and ensuring that local businesses benefit from continental agreements.
He stressed that the success of the African Continental Free Trade Area depends largely on efficient financial systems. In his words, “Efficient cross-border payments, supported by trusted digital identity systems, will be key to realizing President Bola Tinubu’s Renewed Hope vision for Nigerian MSMEs.”
The initiative targets Micro, Small, and Medium Enterprises, which are expected to benefit from easier access to a market valued at about $3.5 trillion. By improving digital payment infrastructure, the government aims to reduce transaction costs and simplify trade processes for businesses operating across borders.
The report also identifies key tools that can drive this transformation. One of them is the Pan-African Payment and Settlement System, which allows faster and more efficient transactions using local currencies. In addition, Nigerian fintech companies such as PalmPay and Moniepoint are expected to play a major role in expanding digital payment adoption across Africa.
Despite the opportunities, the report acknowledges existing challenges. These include fragmented regulations across countries, weak digital identity systems, and foreign exchange instability. Addressing these issues will be necessary to fully unlock the benefits of cross-border trade.
Industry data shows that Africa’s cross-border payments market is growing rapidly and could reach $1 trillion by 2035, driven by fintech innovation and increased intra-African trade. The rising use of mobile money is also helping to make transactions faster and more accessible, particularly for small businesses.
Overall, the report represents a strategic move by the Federal Government to align Nigeria with the future of digital commerce in Africa. By strengthening payment systems and improving access to regional markets, the initiative is expected to support economic growth, create jobs, and enhance the competitiveness of Nigerian businesses across the continent.
