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Nigeria’s listed banks and telecom companies are emerging as front-runners in capturing Africa’s $1.9 trillion market under the African Continental Free Trade Area (AfCFTA), offering investors insight into how regional expansion can drive revenue growth and market resilience.
Despite accounting for over 18 percent of Africa’s population and a GDP of $246 billion in 2024, Nigerian listed firms have historically focused on domestic markets. Intra-African trade accounts for just 14.4 percent of total African commerce, far below Europe’s 65 percent and Asia’s 58 percent, while only 11 percent of cross-border investments originate within the continent, according to the chairman of the Nigerian Economic Summit Group (NESG), Olaniyi Yusuf.
“Despite being home to 17 percent of the world’s population and some of the fastest-growing economies, Africa’s share of global trade remains a mere 3 percent,” Yusuf said, highlighting the structural gap and opportunity for firms that expand continent-wide.
Nigerian banks have been particularly aggressive in leveraging regional opportunities. United Bank for Africa (UBA) operates in more than 20 African countries, including Ghana, Kenya, and South Africa, while Access Bank has subsidiaries in 20 countries, such as Angola, Kenya, and Zambia.
Guaranty Trust Holding Company (GTCO) has a presence in Côte d’Ivoire, Kenya, and Sierra Leone, while Zenith Bank and First Bank of Nigeria also operate across multiple African markets. These cross-border operations provide revenue diversification and strengthen foreign currency positions, critical in a volatile naira environment.
Telecommunications firms are also capitalizing on Africa’s regional market. MTN Nigeria, part of the pan-African MTN Group, has a significant presence in several African countries. Airtel Africa, operating in 14 countries including Kenya, Uganda, and Zambia, has leveraged its pan-African footprint to grow mobile and digital payment services in underbanked markets. Globacom and T2 Mobile -formerly 9mobile – are also exploring regional expansion, reflecting the increasing trend of Nigerian telecoms targeting growth beyond domestic borders.
Read also: Manufacturers call for export policy reforms to unlock AfCFTA potential
Challenges remain. Non-tariff barriers, regulatory divergences, and inefficient logistics continue to raise the cost of intra-African trade by over 30 percent, according to UNECA. Labour mobility remains limited, while tax regimes vary widely. Yusuf emphasised that “regional resilience is the new currency of competitiveness” and that Nigerian listed firms must navigate these barriers strategically to maximize continental opportunities.
Yusuf stressed Nigeria’s leadership role in continental growth: “Nigeria holds both the responsibility and the opportunity to lead in driving regional integration, spurring corporate expansions, and shaping geopolitical alignment.”
He framed NESG’s “Rising Together” initiative as a practical platform for cross-border collaboration: “Rising Together is not just a theme but a call to accelerated cross-border action. Today’s conversations must focus on how African companies and governments can enhance collaboration, address labor, language, and regulatory barriers, and create a conducive ecosystem for growth.”
For investors, the regional strategy of banks and telecoms presents clear opportunities. World Bank estimates suggest that full AfCFTA implementation could lift 30 million people out of poverty and add $450 billion to Africa’s GDP by 2035. Companies that scale regionally early may capture new markets, improve revenue resilience, and benefit from first-mover advantages in fast-growing economies.
Africa’s demographic trends further amplify the opportunity. By 2030, the continent will host roughly 20 percent of the world’s population and, by 2050, it will have the largest global workforce. Listed Nigerian banks and telecoms that tap into this emerging consumer and workforce base could see both revenue growth and increased investor interest.
Ultimately, Nigeria’s banks and telecoms illustrate how corporate strategy and regional integration intersect. For investors and market watchers, these sectors are bellwethers: their expansion across Africa not only drives earnings but signals the broader potential of Nigeria’s participation in the continent’s $1.9 trillion market.
