Amanze Chinonye
The Nigerian Content Development and Monitoring Board (NCDMB) has outlined a practical framework for positioning Nigeria’s energy sector to benefit from the African Continental Free Trade Area (AfCFTA), following a strategic webinar focused on meeting rules-of-origin requirements for continental trade.
The pre-conference webinar, held on Wednesday ahead of the Nigeria Local Content AfCFTA Energy Summit scheduled for February 9, 2026, brought together stakeholders from the oil and gas, power and renewable energy sectors to examine how Nigerian products and services can qualify for preferential market access across 54 African countries.
Participants discussed opportunities within the AfCFTA market, which has a combined gross domestic product of about $3.4 trillion and a population estimated at 1.4 billion people, as well as the technical requirements Nigerian firms must meet to trade duty-free within the bloc.
Join our WhatsApp ChannelThe webinar, titled “Meeting AfCFTA Origin Requirements in Energy Trade,” focused on one of the major barriers facing Nigerian exporters under AfCFTA compliance with rules of origin, which determine whether goods and services qualify for preferential tariffs.
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The initiative was supported by the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, and the Acting Director of Planning, Research and Statistics, Mr Ene Ette, as 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 during the session, a communications analyst, Joseph Nwokedi, representing the Acting National Coordinator of Nigeria’s AfCFTA Coordination Office, Mrs Patience Okala, described energy as central to Africa’s economic integration agenda.
Nwokedi urged Nigerian companies to look beyond the domestic market of about 200 million people and target the wider African market, noting that even a one-per-cent penetration of the continental market represents roughly 14 million consumers.
He said AfCFTA transforms energy from a domestic infrastructure concern into a tradable and investable sector within an integrated African market.
The webinar identified four key channels through which Nigeria’s energy sector can leverage AfCFTA. These include electricity generation under the Electricity Act 2023, which allows independent power producers to supply industrial clusters and export processing zones; export of professional services such as engineering and energy auditing under mutual recognition arrangements; cross-border trade in refined petroleum products, gas derivatives, electricity and renewable energy components; and increased investment flows supported by AfCFTA’s investment protocol and Nigeria’s recent investment incentive reforms.
Delivering a technical presentation, Assistant Comptroller of Customs, Burhan Sulaiman, said AfCFTA would eliminate tariffs on 90 per cent of goods traded within the bloc over a period of five to 10 years, with an additional seven per cent liberalised over 13 years, provided exporters meet origin requirements.
He explained that origin is determined by where economic production occurs, rather than company ownership, adding that foreign-owned firms producing in Nigeria can export under Nigerian origin, while Nigerian firms importing finished goods cannot claim AfCFTA preferences.
Sulaiman outlined two routes to preferential access: wholly obtained goods, such as crude oil, natural gas and locally generated electricity; and goods that undergo substantial transformation, which must meet conditions including changes in tariff classification, value-addition thresholds or completion of prescribed industrial processes.
He cautioned that simple blending, basic assembly, installation-only activities and limited processing operations do not qualify under AfCFTA origin rules across the oil and gas, power and renewable energy sectors.
According to him, the Nigeria Customs Service applies a five-step verification process for origin claims, warning that weak or incomplete documentation often leads to denial of AfCFTA benefits, even where products are genuinely originating.
Both speakers stressed that origin compliance should be treated as a core business strategy rather than a regulatory afterthought, urging companies to integrate compliance into project planning, sourcing and investment decisions from inception.
Officials also provided updates on AfCFTA implementation, noting that 92 per cent of rules of origin have been agreed, with negotiations ongoing in the textiles and automotive sectors. They disclosed that an online dispute resolution mechanism and a paperless electronic certification system are now operational in Nigeria.
The webinar concluded with confirmation that it was a technical precursor to the Nigeria Local Content AfCFTA Energy Summit, which is expected to bring together policymakers, industry leaders and trade experts to develop strategies for maximising Africa’s energy potential under the AfCFTA framework.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
