The Network of Practicing Non-Oil Exporters of Nigeria (NPNEN) has revealed that utilisation of the African Continental Free Trade Area (AfCFTA) remains significantly low among Nigerian exporters, despite the country recording N12.36trn in non-oil export performance in 2025.
This was disclosed in the organizational report with support from UK International Development. The study drew on four primary data sources, including a desk review, exporter survey, key informant interviews, and a multi-location validation workshop.
According to the report, 66 per cent of Nigerian exporters operate below $50,000 in export value, highlighting a highly fragmented export landscape dominated by micro-scale players. The survey noted a “missing middle” between low-value exporters and a small number of high-performing firms, suggesting limited scale and competitiveness across the sector.
The findings come amid official data indicating rising non-oil export values and expanding destination markets. However, the report cautioned that these gains mask deeper structural weaknesses, including low utilisation of trade frameworks such as AfCFTA and the UK Developing Countries Trading Scheme (DCTS).
Further analysis showed that 62 per cent of export constraints originate before goods reach the border, pointing to domestic bottlenecks as the most significant barriers to export growth. These include regulatory inefficiencies, compliance challenges, and weak institutional coordination.
In addition, only 50 per cent of exporters recorded at least one shipment in the past 24 months, underscoring irregular and inconsistent export activity. Logistics challenges also remain prominent, with 34 per cent of respondents identifying high shipping costs as a major constraint to competitiveness.
Access to finance continues to pose a significant challenge, as 37 per cent of exporters reported frequent difficulties in securing working capital. The report also highlighted gender participation, noting that 50 per cent of women-led exporters achieved at least one export transaction, although most operate at limited scale.
Despite the opportunities presented by AfCFTA and the DCTS, including tariff reductions, expanded market access, and regional integration—the survey found that many exporters lack practical knowledge of how to utilise these frameworks. Respondents indicated that they either do not understand how the schemes work or have not received adequate guidance on implementation.
The report emphasised that improving Nigeria’s non-oil export competitiveness will require a shift from theoretical market access to practical utilisation. It identified key constraints limiting uptake, including domestic compliance gaps, high logistics costs, limited access to finance, weak buyer linkages, and low awareness of operational procedures.
To address these challenges, NPNEN called on relevant authorities to urgently introduce a practical utilisation programme that would provide step-by-step guidance for exporters on how to access and benefit from AfCFTA and the DCTS.
The organisation stressed that without targeted interventions to address domestic barriers and improve exporter capacity, Nigeria risks underutilising existing trade opportunities and limiting the broader impact of its growing non-oil export sector.
