Boosting Trade under AfCFTA

In a major move to enhance Nigeria’s participation in the African Continental Free Trade Area (AfCFTA) and strengthen regional trade, the Federal Government has officially launched a new Nigeria–East/Southern Africa air cargo corridor. The route is designed to support micro, small, and medium-sized enterprises (MSMEs) by offering a 50% discount on freight rates. This initiative is part of a broader strategy to help Nigerian businesses access new markets across Africa with greater efficiency and lower logistics costs.

Key Beneficiaries: MSMEs and Trade Associations

The air cargo corridor specifically targets MSMEs, especially those operating under organized and registered associations such as:

  • Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA)

  • Nigerian Association of Small and Medium Enterprises (NASME)

  • National Association of Small Scale Industrialists (NASSI)

  • Women Chamber of Commerce, Industry, Mines and Agriculture (WCCIMA)

By channeling access through these umbrella organizations, the Ministry of Industry, Trade and Investment aims to ensure transparency, accountability, and equitable distribution of benefits among genuine enterprises.

AfCFTA Commitment: Tariff Concessions and Readiness

The launch follows the gazetting of Nigeria’s Provisional Schedule of Tariff Concessions (PSTCs) in April 2025. This move signals Nigeria’s official commitment to the AfCFTA framework and unlocks opportunities for Nigerian goods to benefit from preferential tariffs across African markets.

Flag-Off Ceremony: Abuja Takes Centre Stage

The inauguration ceremony took place at Nnamdi Azikiwe International Airport, Abuja, and was led by the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole. Speaking at the event, she described the new route as a “strategic pathway” for Nigerian goods to reach key African trade destinations like Kenya, Uganda, and South Africa with speed, efficiency, and competitive pricing.

“This initiative isn’t just about transportation; it’s a robust trade facilitation tool developed by Africans, for Africans,” Dr. Oduwole stated. “It empowers our MSMEs by giving them a reliable and cost-effective logistics solution for intra-African trade.”

Strategic Partnerships: Uganda Airlines and UNDP Support

The air cargo corridor is the result of a collaboration between Nigeria and Uganda Airlines, with significant backing from the United Nations Development Programme (UNDP). The primary objective is to cut delivery timelines from several weeks or months to just days—especially for perishable and time-sensitive goods such as:

  • Textiles

  • Cosmetics

  • Processed agricultural products

  • Leather goods

This drastic reduction in delivery time will enable Nigerian products to stay fresh and competitive in regional markets.

Freight Discount: 50% Rate Reduction for Eligible Businesses

One of the most impactful features of the new corridor is the 50% discount on freight rates for businesses under the recognized trade associations. This rate is significantly lower than what is currently available through commercial cargo services. According to Dr. Oduwole, this pricing model not only supports affordability but also helps the Ministry track trade volumes and ensure that benefits reach the right participants.

Operational Hubs: Starting with Abuja and Lagos

The cargo corridor will initially operate out of Nigeria’s two main commercial centres—Abuja and Lagos. These cities will serve as the foundation for expanding the corridor’s reach across other parts of Nigeria in the future. The goal is to integrate Nigerian exporters into the wider African value chain, particularly in value-added sectors.

A Game Changer for Nigerian Exporters

The initiative aligns with Nigeria’s role as AfCFTA’s Digital Trade Co-Champion, a position that emphasizes innovation, trade facilitation, and economic inclusiveness. “This isn’t just about infrastructure; it’s about empowering businesses to grow beyond borders,” said Dr. Oduwole.

She further noted that the resilience of Nigerian entrepreneurs, combined with strategic trade infrastructure like this corridor, will play a key role in increasing Nigeria’s exports and fostering regional economic development.

Broader Vision: Making AfCFTA Work for Nigeria

Ultimately, the air cargo corridor is a cornerstone in Nigeria’s broader vision of actualizing the potential of AfCFTA for its local businesses. By removing logistical barriers and reducing operational costs, the initiative makes it easier for MSMEs to compete regionally.

“This is a significant step toward making the AfCFTA real for our businesses,” the Minister concluded. “We are not just opening a trade route—we are opening doors for thousands of Nigerian businesses to thrive across Africa.”