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Part of the guideDoing business with Africa: paying and getting paid in Nigeria
The short answer
The African Continental Free Trade Area (AfCFTA) cuts tariffs on goods traded between participating African countries, but only for goods that meet its rules of origin and only between countries whose tariff schedules are in force. A foreign company benefits through an African entity that makes or substantially transforms goods in Africa; goods simply re-exported from outside Africa do not qualify. In Nigeria, an AfCFTA certificate of origin can now be issued within 24 hours.
AfCFTA is often described as a single continental market. For an exporter in October 2026, it is more precise to see it as a set of tariff preferences that work on some routes, for some products, with the right paperwork. This article explains how to tell whether your goods qualify. For the payments and tax side of working with Nigeria, see the parent guide on doing business with Nigeria and Africa.
Where AfCFTA stands in 2026
| Measure | Status |
|---|---|
| Ratifications | 49 of 54 AU members had ratified by July 2025; Eritrea has not signed |
| Tariff schedules gazetted | 25 countries by March 2026, including the Southern African Customs Union |
| Rules of origin agreed | 92.43% of tariff lines by July 2025; automotive, clothing and textile rules reported adopted in March 2026 |
| Guided Trade Initiative | More than 39 countries trading under the pilot |
| Certificates of origin issued | More than 12,000 by March 2026 |
| Intra-African trade | About $213.8 billion in 2025, under 18% of Africa's total trade |
Nigeria signed the agreement on 7 July 2019 and ratified it on 3 December 2020. It began trading under the Guided Trade Initiative on 16 July 2024, with shipments to Cameroon, Kenya, Algeria, Uganda and Egypt.
How the tariff cuts work
Each country's schedule sorts tariff lines into three categories:
- Category A (about 90% of lines)
- Non-sensitive goods, liberalised to zero over a set phase-in period.
- Category B (about 7%)
- Sensitive goods, with a longer phase-in. Reductions on these were scheduled to begin in January 2026.
- Category C (about 3%)
- Excluded goods, which keep normal tariffs.
ECOWAS, which negotiates for Nigeria, submitted a tariff offer covering more than 8,000 lines. The AfCFTA e-tariff book lists the preferential rate for each six-digit HS code by country pair. Check the rate for your product and destination there before you build a price.
Rules of origin: the test that decides everything
A preference only applies to goods that originate in an AfCFTA state party. In outline, goods qualify if they are wholly obtained in Africa (crops, minerals, livestock) or have been sufficiently worked or processed there, according to product-specific rules in the AfCFTA Rules of Origin Manual.
- Re-exports do not qualify. If a UK company ships finished goods to its Lagos warehouse and on to Nairobi, Kenya charges its normal tariff. Repacking and labelling are not enough.
- Local manufacturing can qualify. If the Lagos entity manufactures using imported inputs and meets the product rule, the finished goods can travel at the preferential rate.
- Some sectors are still uncertain. Sugar, dairy and leather are reported as unresolved, and sources disagree on whether the automotive and textile rules are in force everywhere. Confirm with the destination's customs authority.
- Keep the evidence. Bills of materials, supplier declarations and production records support your origin claim if customs audit it later.
Getting the certificate in Nigeria
The Nigeria Customs Service and other agencies implement AfCFTA in Nigeria, and the application process is on the Nigeria Trade Portal: request the certificate, pay for it, receive it. In September 2026 the trade ministry said digitisation had cut processing from more than five days to 24 hours. For consignments up to $5,000, an origin declaration on the invoice can be used instead of a certificate.
A worked example: a Lagos factory shipping to Kenya
A US consumer goods company owns a factory in Lagos and sells $200,000 a year of finished products to a Kenyan distributor. The tariff rates below are illustrative; look up the actual rate for your HS code.
- Without AfCFTA. Suppose Kenya's normal tariff on the product is 25%. Duty is $50,000 a year, paid by the distributor and passed into the shelf price.
- With AfCFTA, Category A product, partway through phase-in. Suppose the preferential rate is 10%. Duty falls to $20,000, a saving of $30,000.
- The condition. The products must meet the rule of origin, say a change of tariff heading or a minimum level of African value added, and travel with a valid certificate or declaration.
- The payment. The Kenyan distributor pays the Lagos entity. That can be a dollar transfer or, where both banks participate, a local-currency payment through PAPSS.
Checklist before you claim a preference
- Find the six-digit HS code for each product and confirm it with a customs broker.
- Check that both the exporting and importing countries have tariff schedules in force for AfCFTA trade, and look up the preferential rate in the e-tariff book.
- Read the product-specific rule of origin and test your bill of materials against it.
- Collect supplier declarations for African inputs and keep production records.
- Apply for the certificate of origin, or use an origin declaration for consignments up to $5,000.
- Agree with the buyer in the contract who claims the preference and who bears duty if the claim is refused.
- Register any non-tariff barrier you meet, such as an unexpected document demand, through the AfCFTA reporting mechanism; Nigerian officials report resolving eight such cases between the second and third quarters of 2026.
Payments and export proceeds
Getting paid is part of exporting from Nigeria. Under the CBN's 2026 Foreign Exchange Manual, non-oil export proceeds must be credited to the exporter's domiciliary account at the bank where the export declaration (Form NXP) was processed within 90 days of the bill of lading, or a 1% penalty applies. Form NXP processing is now free.
For payments between African countries, PAPSS settles in local currencies and is formally recognised in the 2026 Manual; see PAPSS explained. For bank paperwork on the import side, see Form A and Form M. The Nigeria business payments guide covers moving profits back to the UK, US or Europe.
Where Pryme fits
Certificates of origin, tariff classification and customs advice sit with your chamber of commerce, customs broker or trade adviser; the steps above explain what to ask them for. Pryme helps with the money side. A business multicurrency account holds NGN, USD, GBP and EUR, and money stays in the currency it arrived in until you choose to convert. Pryme Financial Ltd is a technology company, not a bank. In Nigeria, naira deposits are held by Solid Allianze Microfinance Bank Ltd, licensed by the CBN and insured by the NDIC up to the applicable limit; outside Nigeria, activities are carried out through regulated partners. Invoicing is available from the same account. A business account can be opened from any country; the documents required for your business are shown when you apply.
Questions people ask
Can goods made outside Africa benefit from AfCFTA?
No. Only goods that originate in an AfCFTA state party under the rules of origin qualify. Goods made in the UK, US or Europe and re-exported through an African warehouse pay normal tariffs.
How do I get an AfCFTA certificate of origin in Nigeria?
Apply through the Nigeria Trade Portal, where the process and documents are listed. Since September 2026 processing takes about 24 hours. Consignments up to $5,000 can use an origin declaration instead.
How many countries are trading under AfCFTA?
49 of 54 AU members had ratified by July 2025, 25 had gazetted tariff schedules by March 2026, and more than 39 trade under the Guided Trade Initiative. Preferences apply only where both countries' schedules are in force.
What are AfCFTA Category A, B and C goods?
Category A covers about 90% of tariff lines and is liberalised to zero over time. Category B covers sensitive goods with a longer phase-in. Category C covers about 3% of lines that are excluded.
How are AfCFTA trades paid for?
Usually by bank transfer in dollars, euros or local currency. PAPSS lets participating banks settle intra-African payments in local currencies, and Nigerian exporters must bring proceeds home within the CBN's deadlines.
Sources
- Rio Times: AfCFTA status 2026 (updated Sept 2026) · accessed Oct 2026
- tralac: Trading under the AfCFTA: Nigeria factsheet · accessed Oct 2026
- ThisDay: Nigeria cuts AfCFTA export certificate to 24 hours (Sept 2026) · accessed Oct 2026
- Mondaq: The CBN Foreign Exchange Manual 2026 · accessed Oct 2026
- Mondaq: The CBN's 2026 Foreign Exchange Manual: key reforms and practical implications · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.