Abstract

This study attempts to provide a nuanced perspective on the promise and perils of the African Continental Free Trade Agreement on Nigeria’s developmental aspirations. It is anticipated that the trade agreement’s adoption and implementation will boost intra-African trade and create local and regional value chains, opening up new business opportunities for investors and giving them access to a population of 1.7 billion people whose combined spending on goods and services will reach $6.7 bn by 2030. But how will these projections impact the continent’s largest economy and most populated country, Nigeria? This study tackles this pertinent question employing a desk research method, drawing data from secondary sources and relevant literature. The research adopts Dependency Theory and Institutional Economics model to provide useful insights into the dynamic relationship between AfCFTA and Nigeria’s development goals. Results indicate that in line with Nigeria’s economic development aspirations, the AfCFTA would promote economic growth in addition to the push for competitiveness in a variety of local industries and the reduction of poverty. However, this study identifies significant vulnerabilities relating to economic hazards. Nigeria’s current trajectory falls short of the requisite standards in terms of strategic policymaking to leverage on opportunities and reduce risks. This paper thus recommends evolving solution and international cooperation to enable AfCFTA catalyse development in Nigeria.

Keywords: Trade, Development, Integration