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Intra-Trade Relations and the Implementation of African Continental Free Trade Area. A Study of Nigeria and Ghana Relations (2015-2026)

Okorie Favour Chinenyenwa, Ogedi Jacob PhD

Abstract

African Continental Free Trade Area was established to enhance economic integration, promote intra-African trade, and create a unified continental market. Since the commencement of trading under AfCFTA in 2021, African states have intensified efforts towards implementation through initiatives such as the Guided Trade Initiative , the Pan-African Payment and Settlement System , and the AfCFTA Digital Trade Protocol. Despite its promise, implementation has faced significant challenges. This study examined intra-trade relations and the implementation of AfCFTA, a study of Nigeria and Ghana trade relations (2015 to 2026), with a view to assessing progress, identifying constraints, and suggesting improvement strategies. The study was anchored on Liberal Intergovernmentalism Theory, which emphasises the role of state preferences and bargaining in regional integration. The study adopted a qualitative research design and relied on secondary data from scholarly publications, official reports, and trade statistics. Data were analysed using qualitative content analysis. Findings revealed that although both Nigeria and Ghana have ratified the AfCFTA and established administrative structures, implementation remains uneven. Ghana has shown a stronger commitment through hosting the AfCFTA Secretariat and aligning policies, whereas Nigeria demonstrated initial reluctance due to protectionist tendencies. The study also identified policy incongruence, infrastructural deficits, trade imbalances, low SME awareness, and political instability as major impediments. It concluded that, while AfCFTA holds significant potential for economic transformation, its success between the two countries depends on translating political commitments into actionable measures. The study recommended that, among other measures, policy harmonization, digital trade coordination, and sustained political commitment, supported by bilateral mechanisms and infrastructure investments, are vital for ensuring the effective implementation of AfCFTA and promoting inclusive economic growth in West Africa.

Keywords

African Continental Free Trade AreaIntra-African Tradeeconomic integrationliberal intergovernmental theoryPan African payment etc

References

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