The African Export-Import Bank (Afreximbank) has called on Nigeria to take the lead in implementing a regional transit guarantee scheme that could transform cross-border trade across West Africa. Speaking at the inaugural Customs Partnership for African Cooperation in Trade (Customs PACT) in Abuja from November 17 to 19, Mrs. Kanayo Awani, Executive Vice President for Intra-African Trade and Export Development at Afreximbank, urged Nigeria to champion the adoption of a unified transit system under the newly endorsed ECOWAS transit regulation. This Afreximbank Nigeria transit guarantee push aims to dismantle one of the most persistent barriers to free movement of goods: inefficient, costly, and fragmented road transit regimes.
Currently, intra-regional trade in West Africa is hampered by an outdated system that relies heavily on physical customs escorts for cargo in transit—leading to delays, corruption risks, and inflated logistics costs. A critical missing piece? A regional transit guarantee mechanism that allows goods to move freely across borders without redundant checks and multiple bond requirements. Without it, traders face bureaucratic bottlenecks that undermine competitiveness and discourage cross-border commerce.
“Afreximbank is eager to collaborate with Nigeria, ECOWAS, and the ECOWAS Bank of Investment and Development to support the implementation of a regional transit guarantee system,” Awani said. “This will empower national insurers and chambers of commerce to enhance their capacities while ensuring compliance and revenue protection for customs authorities.”
To drive this transformation, Afreximbank is rolling out a $1 billion African Collaborative Transit Guarantee Scheme—a pan-African initiative designed to streamline trade by replacing multiple national bonds with a single, regionally recognized transit bond. This innovation significantly reduces red tape, eliminates the need for escort vehicles, lowers business costs, and strengthens customs control over illicit trade and duty evasion.
The model is already proving successful. Under a $300 million facility with ZEP RE (PTA Reinsurance Company) in Nairobi, the scheme is operational across the Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC). Once fully implemented continent-wide, Afreximbank estimates the system could save African economies at least $300 million annually in transit-related expenses.
Awani emphasized that infrastructure alone won’t solve Africa’s trade inefficiencies. Citing data from the Africa Union Development Agency (AUDA-NEPAD), she noted that 75% of delays in moving goods stem from soft infrastructure challenges—particularly customs procedures—while only 25% are due to physical infrastructure gaps. Non-harmonized systems and lack of interoperability between national customs platforms remain major obstacles, preventing seamless information exchange and real-time tracking.
To address this, Afreximbank is also supporting the establishment of one-stop border posts (OSBPs) across the continent. One notable success story is the modernization of the Beitbridge border between South Africa and Zimbabwe, where clearance times dropped from 3–5 days to just 3–5 hours after upgrades in infrastructure, digital systems, and joint customs operations.
“Afreximbank supports this event because we recognize that unresolved customs and trade facilitation issues could severely hinder the full potential of the African Continental Free Trade Area (AfCFTA),” Awani said. “We stand ready to work with Nigeria and other African nations to build integrated, efficient, and secure trade corridors.”
The Customs PACT roundtable, organized by the Nigeria Customs Service in collaboration with Afreximbank, the AfCFTA Secretariat, and supported by the World Customs Organization, was designed to revolutionize customs cooperation, boost intra-African trade, and position Africa as a more competitive player in global supply chains.
In a message of endorsement, Nigerian President Bola Ahmed Tinubu affirmed the government’s commitment to regional integration and trade facilitation, stating that the initiative aligns perfectly with national efforts to strengthen Nigeria’s role in Africa’s economic transformation.
With Nigeria serving as West Africa’s largest economy and a key transit hub, its leadership in adopting the regional guarantee scheme could catalyze broader adoption across ECOWAS. If successful, the Afreximbank Nigeria transit guarantee push won’t just ease truck movements—it will accelerate the realization of a truly integrated African market.
Because when goods move faster, economies grow stronger.
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