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By Merit Ibe
Nigeria’s participation in regional and global trade has remained below its potential due to weak linkages across production, logistics, financing and export support systems.
Experts say despite being Africa’s largest economy and a signatory to the African Continental Free Trade Area (AfCFTA), the country continues to face challenges in connecting local producers, manufacturers, exporters, and markets in a coordinated manner. Inadequate infrastructure, limited access to export finance, poor value-chain integration, and weak institutional collaboration have constrained the ability of Nigerian businesses, particularly small and medium-sized enterprises (SMEs), to compete effectively in regional and international markets.
The AfCFTA presents a significant opportunity for Nigeria to expand its export base, deepen regional trade, and drive economic diversification beyond oil. However, experts argue that the country must move beyond policy discussions and trade agreements to practical implementation that strengthens production capacity, improves trade connectivity, and enhances support for exporters. They believe that without stronger linkages between key sectors and institutions, Nigeria risks missing out on the vast opportunities offered by the continent-wide free trade agreement and may struggle to position its products competitively within the African market.
They insist that Nigeria must build stronger export linkages to benefit from export trade and AfCFTA.
Dr John Isemede, a WTO/ITC training expert, pointed to the the challenges facing the country’s export sector, arguing that despite signing numerous trade agreements and establishing various committees, councils and policy frameworks, Nigeria continues to struggle with weak implementation and poor coordination among institutions.
According to him, initiatives aimed at improving the ease of doing business, export incentives and trade facilitation have delivered limited benefits to local businesses because government agencies operate independently and policies often remain unimplemented.
Isemede, who is a former Director general of NACCIMA and one time export manager of multinational forms like Dangote Group noted that exporting has become increasingly difficult for Nigerian businesses due to inadequate infrastructure, expensive logistics, limited access to incentives, weak institutional support and the absence of commodity boards.
He also criticized development finance institutions and export agencies for allegedly operating like commercial banks, making it difficult for small and medium-sized enterprises (SMEs) to access export financing.
Isemede, who has served as national expert on export value chain at UNIDO on the NQIP observed that transportation bottlenecks, border restrictions, multiple checkpoints, inefficient port operations and high freight costs continue to hinder trade within West Africa and across the continent. He contrasted Nigeria’s situation with Europe, where goods move more freely through efficient logistics networks.
He stressed that trade competitiveness depends on strong coordination across the value chain, from farmers and raw material suppliers to processors, transporters, warehouses and ports. According to him, Nigeria lacks these critical linkages, limiting its ability to compete effectively in regional and global markets.
The expert also called for stronger regional connectivity through improved road and sea transport corridors, particularly through strategic border communities and ports such as Calabar. He maintained that Nigeria could significantly expand its access to African markets if trade policies were better coordinated and implemented.
Isemede further argued that the country’s export sector remains weak because it has failed to develop strong production, value-addition and export linkages. He pointed to countries such as India and China, which support exporters through dedicated institutions, export banks and diaspora-driven markets, as examples Nigeria could learn from.
“Those who are in the farm producing, in the oil business, those who are in the solid minerals, the upstream, there’s no link or linkages, either with the technical school or a university, to get from the processors, to those who are into packaging, transportation, or transporters down to the port. “Where are the warehouses? These are the things we are saying.”
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He explained that global trade under the World Trade Organization is governed by negotiated rules rather than unrestricted free trade, arguing that Nigeria poorly negotiated or misunderstood some agreements, particularly those affecting the textile and garment industry. According to him, this contributed to the decline of manufacturing hubs in cities such as Kaduna and Aba.
The expert identified poor infrastructure, reliance on generators, high production costs and limited access to affordable financing as major challenges facing SMEs. He advocated the development of industrial clusters where businesses can share essential infrastructure such as electricity and water, similar to successful models in China, Brazil and Pakistan.
On transportation, Isemede lamented the decline of Nigeria’s shipping and aviation capacity, arguing that weak transport connectivity has undermined domestic and regional trade under arrangements such as the Economic Community of West African States (ECOWAS) and the African Continental Free Trade Area (AfCFTA).
“And when it comes to trade facilitation, it’s by air, by sea, and by road.”
He called for the establishment of specialised institutions to train exporters, trade managers and multilingual professionals, noting that Nigeria lacks sufficient educational structures dedicated to export development, logistics and international trade.
According to him, economic recovery and export growth must begin at the grassroots level. He said each of Nigeria’s 774 local government areas and the 36 states possesses economic resources that can be developed through measurable production targets rather than excessive dependence on the Federal Government.
Isemede criticized what he described as a culture of dependency and over-centralisation, urging greater accountability among state and local governments in driving economic development.
Reflecting on Nigeria’s economic history, he recalled periods when the country maintained a stronger industrial base and currency, arguing that growing dependence on imports, rising debt levels and inadequate incentives for production have weakened local industries and contributed to inflationary pressures.
He emphasized that sustained economic growth will require stronger support for production, manufacturing, exports and value addition across the economy.
The CEO, Rimax Group, Linus Okwara, noted that the number of checkpoints, border restrictions, poor port systems and high freight costs discourage trade within West Africa and across Africa.
Okwara stressed the need for stronger regional connectivity and export infrastructure, especially through border towns and ports.
He lamented that exporters face multiple exchange rates, expensive banking conditions and strict foreign exchange repatriation policies. According to him, these challenges discourage formal exports and push many exporters into informal channels.
He highlighted the burden facing SMEs, including poor infrastructure, dependence on generators, high production costs and weak access to affordable financing, advocating for industrial clusters where businesses can share infrastructure such as electricity and water.
Okwara advised that Nigeria’s shipping and aviation capacity be upgraded and developed to strong national airlines and logistics systems, arguing that poor transport connectivity has weakened both domestic and regional trade under agreements such as ECOWAS and the African Continental Free Trade Area.
He highlighted the need for specialised institutions to train exporters, trade managers and multilingual professionals. He believes Nigeria lacks enough well-trained exporters and trade professionals because there are few institutions dedicated to export education, logistics and international trade development. He advocated creating specialised export academies and technical training systems similar to those in successful exporting nations.
