Nigeria, Japan deepen trade ties to boost SMEs participation in AfCFTA

Nigeria and Japan are seeking to unlock new trade and investment flows under the African Continental Free Trade Area (AfCFTA) following a two-day capacity building and investment dialogue convened by the United Nations Development Programme (UNDP) with support from Government of Japan and the BusinessDay Foundation as media partner.

The forum, “Unlocking Trade and Investment Opportunities in the Context of AfCFTA,” held in Lagos on January 28 and 29, brought together government officials, regulators, financiers, Japanese firms and Nigerian businesses to address policy alignment, market readiness, financing gaps and regulatory bottlenecks constraining cross-border trade.

Speaking at the event, Folashade Ambrose-Medebem, Lagos State commissioner for Commerce, Cooperatives, Trade and Investment, described the engagement as “timely, strategic and critical to Nigeria’s trade and investment ambitions,” particularly in strengthening economic ties with Japan.

She said Lagos remained Nigeria’s commercial hub and highlighted state-backed export readiness initiatives, noting that “for the first time, 253 businesses were trained and equipped to meet export requirements” through a structured programme.

“The Foundation’s involvement reflects our mandate to strengthen economic understanding and improve the quality of trade and investment discourse to promote implementation-focused engagement between policymakers, regulators and the private sector,” Lily Adimefe, executive director, BusinessDay Foundation, said.

Speaking with BusinessDay at the event, Zahrah Mustapha Audu, director-general of the Presidential Enabling Business Environment Council (PEBEC), said her office does not interpret AfCFTA rules for exporters but focuses on ensuring that regulators deliver services efficiently.

Audu urged businesses to understand regulatory requirements and use official escalation channels when discrepancies arise. “If the information published on regulators’ websites differs from what is being demanded of you, you can escalate to PEBEC,” she said, adding that PEBEC also conducts quarterly “mystery shopping” to independently test compliance.

She said Nigeria is ready for Japanese investment, citing policy consistency, fiscal reforms and regulatory streamlining. “Absolutely, Nigeria is ready for Japanese businesses,” Audu said. “This is a great time to come into Nigeria. We’re streamlining reforms, reducing regulations and holding ourselves accountable as a government.”

Providing a macroeconomic and investment outlook, Babatunde David, consulting lead at Seven Star Consultants Ltd, said recent reforms had improved Nigeria’s attractiveness as an AfCFTA gateway. He cited a unified foreign exchange market, improved transparency and external reserves at an eight-year high, adding that Nigeria’s population of nearly 250 million gives investors access to both a large domestic market and AfCFTA’s $3.4 trillion continental market.

On AfCFTA implementation, Benedict Obhiosa, executive secretary of the Manufacturers Association of Nigeria (MAN) Export Group, said the agreement offered expanded market access but warned that weak implementation and non-tariff barriers could undermine its benefits.

“The best thing that has happened to Africa in terms of trade is bringing African countries into one trade room to pursue borderless trade,” he said, while stressing that “non-tariff barriers are worse than tariffs.”

A panel on MSME financing underscored structural constraints limiting Nigerian firms’ ability to scale across borders. Foluke Alakija, managing director of Mayden Microfinance Bank, said many MSMEs remain unbankable due to weak documentation and compliance. “Before you can get financing, it has to be presentable. The business itself has to be bankable,” she said.

From an investor perspective, Adesuwa Okunbo-Rhodes, founder of Aruwa Capital, cautioned businesses against foreign-currency debt. “Every five years in Nigeria there is a currency devaluation of some sort… If you’re taking debt, please take local currency debt. Foreign currency debt has killed a lot of businesses,” she said.

Day two of the forum focused on sector-led deal-making and regulatory engagement. Clare Henshaw, UNDP head of inclusive growth, said Nigerian exporters often fail to convert exposure into transactions due to poor preparation.

“It’s not a case of Nigerians not having the right products,” she said, “but what happens when you come back, coordination, certification and follow-through.”

Henshaw urged entrepreneurs to remain engaged despite operating in difficult conditions, describing Nigerian business owners as “heroes.”

Sector roundtables in agribusiness, cosmetics, fashion and manufacturing featured Nigerian firms seeking Japanese partnerships for machinery, automation, technology transfer and market access. Japanese participants highlighted growing demand for organic, health-focused and value-added products, while stressing the importance of quality assurance and compliance.

Business-to-government clinics with Customs, NAFDAC and logistics regulators surfaced long-standing concerns around samples, testing, airport access and charges. Customs officials reiterated that trade-related complaints submitted through official channels must be resolved within 72 hours, while NAFDAC officials defended local testing and labelling requirements as consumer-protection measures aligned with global trade rules.

Organisers said the dialogue is part of a $1 million Japan Supplementary Budget project implemented by UNDP across Nigeria, Ghana, Kenya and Tanzania, aimed at linking African enterprises with Japanese partners and translating AfCFTA commitments into concrete trade and investment outcomes.

Taofeek Oyedokun is a correspondent at BusinessDay with years of experience reporting on political economy, public policy, migration, environment/climate change, and social justice. A graduate of Political Science from the University of Lagos, he has also earned multiple professional certificates in journalism and media-related training. Known for his clear, data-driven reporting, Oyedokun covers a wide range of national and international socioeconomic issues, bringing depth, balance, and public-interest focus to his work.

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