African Continental Free Trade Area (AfCFTA): Nigeria’s Strategic Interests and Foreign Policy Shifts

This paper examined the participation of Nigeria in the African Continental Free Trade Area (AfCFTA) and discusses the strategic interests, the changes in foreign policy, and domestic factors that have influenced the country to join the association. The research is based on a qualitative research design to discuss the first hesitation and subsequent membership of Nigeria to the agreement by relying on policy documents, official statements, scholarly literature, and comparative case studies. The results indicated that the reluctance of Nigeria was based on protectionist issues, poor infrastructure, high levels of informal economy and disjointed policy systems. But its subsequent ratification signifies a strategic re-orientation of regional economic integration to bring about economic diversification, industrial expansion, accessibility of wider markets and increased regional leverage. Another issue that has been identified in the analysis is the fact that Nigeria is not doing well in intra-African trade and export diversification in comparison to other leading African economies like South Africa, Ghana, and Egypt. Historical experiences of successful international trade blocs such as European Union (EU) and ASEAN also emphasize the need to harmonize coordinate institutions and invest in trade-enabling infrastructure. The major recommendations are the need to invest in transport, energy, and digital infrastructure; simplify the customs process; encourage export-based industrial zones; support public- private partnerships; and embrace inclusive policy on trade that will involve women and the youth. The paper concluded that Nigeria is at a strategic intersection. Provided that it makes the required changes to their structures and aligns their domestic policies with the goals of AfCFTA, it could spearhead the transformation of the African economy and become a regional place of innovation and inclusive trade. The study both informs the Nigerian scholarship on the evolving regional trade policy and provides a blueprint to harness AfCFTA to realize a sustainable growth and leadership in the continent.