Nigeria Must Lead ECOWAS Transit Reform, Afreximbank Insists

Afreximbank has urged Nigeria to take a frontline role in driving the implementation of a regional transit guarantee regime across the Economic Community of West African States (ECOWAS), as persistent customs bottlenecks continue to slow trade and increase the cost of moving goods across the sub-region.

Delivering a keynote address at the inaugural Customs Partnership for African Cooperation in Trade (Customs PACT) in Abuja, Mrs Kanayo Awani, Executive Vice President for Intra-African Trade and Export Development at Afreximbank, said the region’s current interstate transit framework is plagued by inefficiencies, particularly the lack of a harmonised transit guarantee system.

She noted that the widespread reliance on physical escort of goods by customs authorities has resulted in higher costs, delays, and logistical burdens for cross-border traders.

Awani said Afreximbank is ready to collaborate with Nigeria, ECOWAS institutions, and the ECOWAS Bank for Investment and Development to deploy an effective regional transit guarantee scheme that will strengthen national insurers and chambers of commerce while easing long-standing trade facilitation challenges.

The Bank is currently rolling out a $1bn African Collaborative Transit Guarantee Scheme aimed at providing a unified mechanism to secure customs duties and address concerns around cargo diversion and revenue losses.

Under the scheme, a single transit bond would replace multiple national bonds, significantly cutting bureaucratic procedures and boosting the efficiency of cross-border movements. Awani highlighted that the model is already functioning in the Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC) under a $300m facility with ZEP-RE, delivering cost savings and greater predictability for traders.

When fully implemented across the continent, the initiative could save Africa at least $300m annually, she added.

Beyond guarantees, Afreximbank is also open to supporting Nigeria in establishing one-stop border posts and similar infrastructure upgrades.

Awani referenced the modernisation of the Beitbridge border post between South Africa and Zimbabwe, supported by Afreximbank and other partners, which reduced clearance times from three to five days to as little as three to five hours.

Awani warned that unresolved “soft infrastructure” issues, particularly customs inefficiencies, fragmented systems, and the absence of interoperable digital platforms, pose a major threat to the successful implementation of the African Continental Free Trade Area (AfCFTA). Citing AUDA-NEPAD data, she noted that 75 per cent of trade delays in Africa stem from facilitation problems rather than physical infrastructure gaps.

President Bola Ahmed Tinubu, in a message delivered to the forum, endorsed the Customs PACT initiative, saying it aligns with Nigeria’s agenda to deepen regional integration, enhance trade ease, and strengthen Africa’s competitiveness in global markets.

The Customs PACT roundtable, organised by the Nigeria Customs Service in collaboration with Afreximbank, the AfCFTA Secretariat, and supported by the World Customs Organisation, brought together policymakers, customs chiefs, and private-sector stakeholders to strengthen customs, business cooperation, and accelerate intra-African trade.