MARKET NEWS

The new air cargo corridor linking Nigeria to Kenya, Uganda, and South Africa is expected to cut export logistics costs by as much as 75 per cent.

  The corridor was launched by the Federal Court as part of the African Continental Free Trade Area (AFCFTA) Guided Trade Initiative.

The corridor was kicked off by the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, in partnership with Uganda Airlines and the United Nations Development Programme (UNDP).

She described the initiative as “a transformative step” for Nigerian businesses, especially micro, small and medium-sized enterprises (MSMEs), which have long been constrained by exorbitant shipping costs and slow customs processes.

“This initiative is more than just a trade route—it is a deliberate strategy to bring down logistics costs, connect Nigerian products to African markets faster, and make our exporters more competitive.

“We are addressing head-on one of the most significant barriers to trade in Africa: the high cost of moving goods. Through this air corridor, Nigerian exporters can now access new markets in East and Southern Africa at up to 75 per cent less than what it previously cost.

“Our government is committed to ensuring that MSMEs—the backbone of our economy—are not left behind in the AfCFTA story. This corridor is designed to serve them,” she said.

The first batch of cargo under the AfCFTA air corridor was dispatched from Lagos, comprising cosmetics, textile products, and processed food items. The Trade Ministry revealed that over 200 MSMEs had already registered to take advantage of the corridor, with more expected in the coming weeks.

Oduwole disclosed that the initiative will run weekly flights in the initial phase, with the possibility of expansion as demand grows. She also confirmed that the government has fully gazetted Nigeria’s AfCFTA tariff schedule, enabling duty-free access for over 90 per cent of goods traded under the agreement.

“We are not just making political statements—we are implementing trade facilitation tools that impact real businesses. Our exporters can now plan, price, and compete knowing that the route, pricing and regulations are clear,” she said.

Also speaking on the initiative, UNDP’s Resident Representative in Nigeria, Mohamed Yahya, said the corridor underscored the shift from policy declarations to practical solutions.

“Trade must deliver impact, and that’s what we’re seeing here—real support for real businesses,” he said.

The move comes as countries such as Kenya, Rwanda, and Egypt ramp up their own logistics capabilities to dominate intra-African trade.

Analysts say the air cargo corridor is Nigeria’s attempt to assert regional leadership within the AfCFTA framework.

“Nigeria has the numbers, the production base, and now, with this corridor, we are building the bridge. We must stay consistent,” Oduwole said.

Experts however say long-term success will depend on Nigeria’s ability to address infrastructural weaknesses and streamline customs procedures.

“This is a strong signal, but follow-through is key. We need to ensure our airports, regulatory agencies, and documentation processes are fully aligned,” a trade policy analyst, Dr. Kemi Ajayi, said.