Manual Procurement Systems Hindering Nigeria’s AfCFTA Benefits, Says Kuraway CEO

Nigeria’s manual procurement systems and inefficient logistics are hindering the country’s ability to fully benefit from the African Continental Free Trade Area (AfCFTA), according to David Chima, CEO of Kuraway. In an interview with JUSTICE OKAMGBA, Chima highlighted the structural issues plating Nigerian businesses, including the lack of a unified, trusted database of vetted vendors, manual processes, and poor transportation networks.

“The current system slows the process, exposes businesses to potential fraud risks, and creates price instability,” Chima said. “What Nigeria needs is a transparent, standardised, technology-driven system that can quicken the entire process and ensure quality from request to order fulfilment.”

The AfCFTA promises to facilitate the free movement of goods across Africa, but implementation has been slow, and Nigerian SMEs face practical barriers when trying to buy or sell across borders. Chima cited regulatory requirements, poor transportation networks, and border-point duty fees as major obstacles.

“The lack of reliable supplier data slows procurement, makes it unpredictable, and leaves it vulnerable to human error or outright fraud,” Chima added. “We need structured data, transparent documentation, and proper verification to build trust and enable businesses to expand operations.”

Foreign exchange volatility has also worsened the impact of procurement delays on Nigerian businesses. Chima explained that FX instability can erode a seller’s profit, especially when procurement takes longer than expected.

Nigeria’s logistics and transport infrastructure is a significant bottleneck, with last-mile delivery constraints, port congestion, and interstate logistics issues influencing procurement cycles. Chima emphasized the need for digital adoption, but noted that cultural and operational factors discourage traditional MSMEs from shifting to digital alternatives.

“The government should focus on implementing and enforcing policies specifically related to insurance for goods in transit, ensuring that businesses are protected against delays, losses, or damage during transportation,” Chima said.

As Nigerian businesses adopt digital procurement processes, Chima foresees a positive impact on job creation, competitiveness, and the country’s ability to participate in intra-African trade. “Streamlined digital procurement reduces delays, lowers costs, and allows businesses to focus on innovation and scaling operations,” he said.