NCDMB maps pathway for Nigeria’s energy sector into $3.4tn AfCFTA market

By Ambrose Nnaji

The Nigerian Content Development and Monitoring Board (NCDMB) has unveiled a practical framework to position Nigeria’s energy sector for preferential access to the African Continental Free Trade Area (AfCFTA), outlining how local operators can meet rules-of-origin requirements and compete across the continent.

The framework was presented during a pre-conference webinar held ahead of the Nigeria Local Content AfCFTA Energy Summit scheduled for February 9. The virtual engagement brought together stakeholders from the oil and gas, power and renewable energy sectors to examine how Nigerian products and services can qualify for preferential trade across 54 African countries with a combined gross domestic product of about $3.4tn and a population of 1.4 billion.

Titled “Meeting AfCFTA Origin Requirements in Energy Trade”, the webinar addressed one of the major hurdles facing Nigerian exporters under AfCFTA: structuring production and operations to satisfy origin requirements that determine eligibility for duty-free and preferential market access.

The initiative, supported by the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, and the Acting Director of Planning, Research and Statistics, Ene Ette, forms part of preparations for the Nigeria Local Content AfCFTA Energy Summit themed “Unlocking Africa’s Energy Future through AfCFTA: Trade, Innovation and Regional Integration.”

Speaking at the session, communications analyst Joseph Nwokedi, representing the Acting National Coordinator of Nigeria’s AfCFTA Coordination Office, Patience Okala, emphasised the central role of energy in Africa’s economic integration agenda. He urged Nigerian firms to look beyond the domestic market of about 200 million people and position for the wider continental market.

“Without energy, there is no industrialisation. Without energy, regional value chains remain aspirational,” Nwokedi said. “Under AfCFTA, energy shifts from being a domestic infrastructure issue to a tradable, investable and exportable sector within an integrated African market.”

He noted that even a one per cent penetration of the continental market represents access to about 14 million consumers, highlighting the scale of opportunity for Nigerian energy companies.

The webinar identified four key entry points for Nigeria’s energy sector under AfCFTA. These include power generation enabled by the Electricity Act 2023, which allows independent power producers to supply industrial clusters and export processing zones; the export of professional services such as engineering and energy auditing under Nigeria’s AfCFTA commitments; cross-border trade in refined petroleum products, gas derivatives, electricity and renewable energy components; and improved investment flows supported by AfCFTA’s investment protocol and recent domestic reforms.

Delivering a technical presentation, Assistant Comptroller of Customs, Burhan Sulaiman, explained that AfCFTA would progressively eliminate tariffs on 90 per cent of goods traded within the bloc over five to 10 years, with additional liberalisation thereafter. However, he stressed that these benefits are strictly tied to compliance with rules of origin.

“Many companies lose AfCFTA benefits because origin compliance is treated as an afterthought. Origin determines whether you export duty-free or pay full tariffs,” Sulaiman said.

He clarified that origin is based on where economic production occurs, not ownership or company registration, noting that foreign-owned firms producing in Nigeria can qualify as Nigerian origin, while Nigerian firms importing finished goods cannot claim AfCFTA preferences.

Sulaiman outlined two main qualification routes: wholly obtained products, such as crude oil, natural gas and locally generated electricity; and substantially transformed goods, which must meet specific criteria including value addition thresholds, tariff classification changes or prescribed industrial processes.

He warned that weak documentation and minimal processing activities remain major reasons for failed origin claims, even where products are genuinely originating.

Both speakers urged businesses to integrate origin compliance into core business strategy from the outset, rather than treating it as a regulatory formality.

“Origin is not just paperwork. It shapes investment decisions, sourcing strategies and regional partnerships,” Sulaiman said.

The webinar also provided updates on AfCFTA implementation, including progress on rules of origin negotiations, the rollout of electronic certification systems and the establishment of dispute resolution mechanisms.

Participants were encouraged to structure projects for origin compliance from inception, pursue regional joint ventures and align with continental standards to maximise opportunities under AfCFTA.

The session concluded with confirmation that the webinar served as a technical precursor to the Nigeria Local Content AfCFTA Energy Summit, which will convene policymakers, industry leaders and trade experts to chart pathways for maximising Africa’s energy potential under the AfCFTA framework.