Introduction

Nigeria is poised to significantly deepen its participation in the African Continental Free Trade Area (AfCFTA) in 2026. The Federal Government has unveiled a strategic roadmap to identify at least one exportable product in each of the country’s 774 Local Government Areas (LGAs). This ambitious initiative is designed to scale up local production, boost non-oil exports, and enhance Nigeria’s competitiveness across the African continent. Under the guidance of the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, this policy forms the central pillar of the Nigeria AfCFTA Agenda for 2026. It builds upon milestones achieved in 2025 and aims to position Nigeria as the primary innovation, production, and distribution hub for the continent-wide trade pact. This article provides a comprehensive analysis of this strategy, its background, and practical advice for Nigerian businesses looking to leverage these new opportunities.

Key Points

Background

To understand the magnitude of the 2026 strategy, it is essential to look at the context of Nigeria’s engagement with the African Continental Free Trade Area. The AfCFTA, which officially commenced trading on January 1, 2021, is the world’s largest free trade area by number of participating countries, aiming to create a single market for goods and services of 1.3 billion people across Africa.

Nigeria’s Journey with AfCFTA

Nigeria signed the AfCFTA agreement in July 2019 but ratified it in December 2020. The country’s journey has been characterized by a cautious but deliberate approach. In 2024 and 2025, the government established the National AfCFTA Implementation Coordination Committee (CCC) and developed a National Action Plan for the Implementation of the AfCFTA (NAP). The focus during these years was largely on institutional setup, tariff negotiations, and identifying sensitive items.

The 2026 pivot represents a shift from theoretical planning to practical, grassroots-level execution. The recognition that Nigeria’s immense productive capacity is often fragmented and underutilized at the sub-national level has led to this LGA-centric approach. By decentralizing the export drive, the government hopes to unlock economic potential in rural areas and combat unemployment by linking local producers directly to the continental market.

Analysis

The decision to spot export merchandise in all 774 LGAs is a bold policy move with far-reaching implications for Nigeria’s economic structure. This section analyzes the strategic rationale and potential impact of this initiative.

Decentralizing Economic Growth

Historically, Nigeria’s export profile has been dominated by oil and gas, with non-oil exports concentrated in a few urban centers like Lagos and Kano. This new strategy seeks to democratize economic opportunities. By mandating the identification of specific products in every LGA, the government is effectively mapping the comparative advantages of every region. For instance, an LGA in the “food basket” of the nation might be identified for processed grains, while a coastal LGA might focus on fisheries or aquaculture. This granular approach ensures that development is not lopsided and that the AfCFTA benefits reach the grassroots.

Boosting Productive Capacity

The strategy notes that investment mobilization will prioritize the “exponential increase of productive capacity.” This is crucial. Identifying a product is only the first step; making it competitive for the continental market requires significant upgrades in technology, standardization, and packaging. The focus on positioning Nigeria as an “innovation, production and distribution hub” suggests a move up the value chain. It is not just about exporting raw yam or cocoa; it is about exporting yam flour, cocoa butter, and other value-added products that command higher prices in the AfCFTA market.

The Role of Data and Monitoring

Another critical analytical point is the emphasis on data. The plan to upgrade trade information systems to track disaggregated data on goods, services, and participation by women and youth is a game-changer. Currently, data on intra-African trade is often opaque. By creating a robust monitoring system, Nigeria can accurately measure the impact of the AfCFTA, identify bottlenecks, and tailor policies to support marginalized groups who are often excluded from formal trade.

Practical Advice

For Nigerian entrepreneurs, manufacturers, and exporters, the 2026 AfCFTA push offers a wealth of opportunities. However, navigating the new landscape requires preparation. Here is a guide for businesses.

How to Prepare for the AfCFTA Market

1. Understand the Rules of Origin: To benefit from tariff reductions under AfCFTA, your goods must meet specific Rules of Origin criteria. This ensures that your products are “Made in Africa.” Start by researching the specific rules for your product category.

2. Engage with State and LGA Authorities: Since the identification of export products will be done in collaboration with State Governments and the Nigerian Governors’ Forum, businesses should engage with their local Chambers of Commerce or State Ministries of Trade. Being on the radar of these bodies increases your chances of being selected as the representative export product for your LGA.

3. Standardize Your Products: The AfCFTA market demands high quality. Ensure your products meet the Nigerian Industrial Standards (NIS) and, where applicable, international standards. Certification from organizations like the Standards Organisation of Nigeria (SON) is non-negotiable.

4. Leverage Government Support Programs: The government plans to launch sensitization campaigns and provide publications on compliance. Keep an eye on announcements from the Federal Ministry of Industry, Trade and Investment (FMITI) regarding training, grants, or export financing schemes.

5. Invest in Packaging and Branding: To compete with products from South Africa, Egypt, or Kenya, Nigerian products must have appealing packaging and clear labeling. This is part of the “innovation” hub strategy.

Steps for LGA Identification

If you are a stakeholder in a Local Government Area, here is how the identification process is likely to unfold based on the government’s plan:

1. Inventory Creation: The State Government, working with the LGA, will likely compile a list of locally produced goods.
2. Comparative Advantage Analysis: They will look for products that are unique to the area or produced more efficiently there than elsewhere.
3. Market Demand Assessment: The chosen product must have a proven or potential market in other African countries.
4. Selection and Validation: One product per LGA will be selected and validated by the AfCFTA Central Coordination Committee.

FAQ

Conclusion

The Federal Government’s plan to spot export merchandise in all 774 LGAs represents a transformative shift in Nigeria’s trade policy. By moving from a centralized, oil-centric export model to a decentralized, production-driven approach, Nigeria is laying the groundwork for sustainable economic diversification. The 2026 AfCFTA push is not just a trade policy; it is a development strategy aimed at empowering local communities, creating jobs, and establishing Nigeria as the undisputed manufacturing hub of Africa. For Nigerian businesses, the message is clear: the time to standardize, innovate, and prepare for the continental market is now. As the implementation unfolds, the synergy between government policy and private sector agility will determine the ultimate success of this historic initiative.

Sources

• Vanguard News. (2026, January 2). 2026: FG to spot export merchandise in 774 LGAs underneath AfCFTA pressure. Retrieved from www.vanguardngr.com
• African Union. (n.d.). The African Continental Free Trade Area (AfCFTA). Retrieved from au.int
• Federal Ministry of Industry, Trade and Investment (FMITI), Nigeria. Nigeria AfCFTA Implementation Strategy.
• World Bank. (2022). The African Continental Free Trade Area: Economic and Distributional Effects.