•Move gives Nigeria, Uganda, Kenya, and South Africa to expand, says Oduwole
The Federal Government has launched the Nigeria-East/Southern Africa Air Cargo Corridor.
The cargo corridor, which is in partnership with the United Nations Development Programme (UNDP) and Uganda Airlines, is a transformative export initiative under the African Continental Free Trade Area (AfCFTA) framework.
Minister of Industry, Trade and Investment, Dr Jumoke Oduwole in her speech at the launch held on Africa Day at the Nnamdi Azikiwe International Airport, Abuja, announced that the new air corridor will provide Nigerian exporters with access to three key African hubs – Uganda, Kenya, and South Africa – with air cargo rates discounted between 50-75 per cent reduction in logistics cost (including regulatory charges).
She said the event marked a major milestone in the collective effort to make the African Continental Free Trade Area (AfCFTA) a reality for Nigerian businesses, especially the micro, small, and medium-sized enterprises (MSMEs) that form the backbone of the Nigerian economy.
The new corridor, which is meant to significantly reduce the cost of freighting goods from Nigeria to the East and Southern African countries is framed by special rates that are currently 50 per cent lower than commercial rates and applies to Nigerian businesses that are members of the umbrella business groups in Nigeria.
The Minister said the initiative marks the fulfilment of President Bola Ahmed Tinubu’s key business campaign promise – to accelerate the diversification of Nigeria’s non-oil exports by leveraging the opportunities presented by the AfCFTA. She said the Federal Government remains committed to supporting Nigerian businesses in scaling their exports across the continent.
“This initiative enables them to expand into African markets with greater confidence, lower costs faster delivery timelines and reduced risks,” the Minister said.
She noted that this will ensure that not only can a wide range of Nigerian businesses benefit from lower cargo rates, but the country can also, from inception, and in collaboration with the business groups, actively monitor the levels of trade with African partners.
The Minister said with the establishment of the AfCFTA, Africa now boasts the world’s largest free trade area by number of countries.
“This market is important as intra-African trade records higher levels of trade in value-added products than trade with other regions,” she said, adding that this potential directly impacts Nigeria’s ambitions to industrialise, diversify exports, encourage the growth of businesses, stimulate job creation and achieve broad economic development.
“Commencing from Lagos and Abuja, this corridor is more than a logistics initiative. It is a strategic trade enabler accelerating regional integration and unlocking new opportunities for Nigerian exporters.
“For far too long, Nigerian exporters have faced steep logistics costs and long delivery times, when they trade with African partners. This corridor reduces delivery timelines from months to days – and it ensures that time-sensitive, perishable goods reach their destinations in peak condition,” she noted.
The minister said this solution is built by Africans, for Africans. “Let me emphasize: this air corridor is not just a pilot; it is a pathway. A pathway for Nigerian MSMEs to enter and expand across Africa with greater confidence, lower costs, shorter time frames, and reduced risk,” she said.
She informed that today (Monday May 26), the government will also be launching a powerful AfCFTA Market Insights/Intelligence Tool, developed with UNDP, to help businesses decode regulatory requirements and identify trends in East and Southern African countries.
She thanked Nigeria’s leading business groups – NACCIMA, NASME, NASSI, WCCIMA and others – for their close collaboration in coordinating credible exporters for the air cargo corridor.
“I also extend my gratitude to the Government of Uganda and Uganda Airlines for being a committed partner in this bold initiative, and to the leadership of UNDP Regional Bureau for Africa, the Regional AfCFTA Portfolio, and the Country Offices in Nigeria and Uganda for their unwavering support in translating vision into impact,” she concluded.
Oduwole expressed appreciation to the Minister of Finance and the Coordinating Minister of the Economy, the Minister of Aviation as well as the Comptroller General of the Nigeria Customs Service, and the MD/CEO, the Federal Airports Authority of Nigeria, for facilitating and being instrumental in today’s successful launch.
