New air corridor to cut Nigeria’s export cost by 75%

New air corridor to cut Nigeria’s export cost by 75%

Nigeria has launched a new air cargo corridor connecting it to Kenya, Uganda, and South Africa, aiming to reduce export logistics costs by up to 75%. This corridor is part of the African Continental Free Trade Area (AfCFTA) Guided Trade Initiative and was officially launched by the Nigerian Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, in collaboration with Uganda Airlines and the United Nations Development Programme (UNDP).

The initiative is designed to support Nigerian micro, small, and medium-sized enterprises (MSMEs), which have faced challenges due to high shipping costs and slow customs procedures. By significantly lowering logistics expenses, the corridor aims to make Nigerian exporters more competitive and enable quicker access to key African markets in East and Southern Africa.

The first shipment sent from Lagos included cosmetics, textiles, and processed foods. Over 200 MSMEs have already registered to use the corridor, which will initially operate weekly flights, with plans to expand depending on demand. Additionally, Nigeria has officially adopted the AfCFTA tariff schedule, allowing duty-free access for over 90% of goods traded under the agreement, providing clarity and predictability for exporters.

UNDP’s representative in Nigeria highlighted the corridor as a concrete step beyond policy rhetoric, emphasizing real business support. The initiative also aligns with efforts by other African countries like Kenya, Rwanda, and Egypt to enhance their intra-continental trade logistics.

While the corridor is seen as a move to reinforce Nigeria’s regional leadership within AfCFTA, experts stress that its long-term success hinges on improvements in infrastructure, customs efficiency, and regulatory coordination. Without addressing these systemic issues, the full potential of the corridor may not be realized.

In summary, Nigeria’s new air cargo corridor marks a significant step towards reducing trade barriers, empowering MSMEs, and strengthening intra-African trade links, but sustained effort and infrastructure development remain critical for lasting impact.