Boosting Economic Diversification in Nigeria through AfCFTA: How Trade Logistics and Infrastructure Shape the Future

The objective of this research was to investigate the impacts of trade logistics and infrastructure on Nigeria’s economic diversification under the framework of the African Continental Free Trade Area (AfCFTA). For Nigeria, economic diversification continues to be a dominant goal owing to its dependence on oil exports, which makes the economy vulnerable to unpredictable global commodity prices. AfCFTA offers Nigeria a unique chance to diversify its economic activities through intra-African trade and industrial development. This initiative, however, depends on the availability of adequate trade logistics and infrastructural facilities. The study employs a mixed-methods approach to evaluate the state of Nigeria’s logistics and infrastructural systems, identifying gaps and challenges at the qualitative and quantitative levels that prevent optimal utilization of AfCFTA. The research indicates that insufficient infrastructure, consisting of inadequate road systems, congested ports, and ineffective customs procedures, severely restricts trading activities. Lack of coherent and cohesive logistics management is also a fundamental issue that prevents Nigeria from maximizing the opportunities of AfCFTA. This study emphasizes the need for adequate funding to be oriented towards infrastructure development, efficient logistics, and policy frameworks. Some recommendations include the enhancement of public-private partnerships, improved port infrastructure, and stronger synergies at the regional level under the AfCFTA scheme. To work towards all-encompassing economic stability and development in Nigeria, it is necessary to first resolve these matters.