Uganda Air Begins New Cargo Routes to Transport Nigerian Goods under AfCFTA at Reduced Costs

• The Nigerian government has announced that Uganda Air has begun Nigeria-East/South Africa air cargo under the AfCTA
• The move is to help Nigerian businesses transport their goods cheaply and timely manner under the AfCFTA agreement
• The minister of Industry, Trade and Investment, Jumoke Oduwole, announced the development

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Ugandan Air has begun its Nigeria-East/South Africa Air Cargo corridor to allow Nigerian goods to move into the African Continental Free Trade Area (AfCFTA) market.

Jumoke Oduwole, the minister of Industry, Trade, and Investment, performed the flag-off ceremony.

Nigerian businesses to gain from the move

She said that the event marked a significant achievement in the collective effort to make the trade area a reality for Nigerian businesses, especially MSMEs.

The new corridor will significantly reduce freight costs from Nigeria to East and Southern African countries and is formed by reduced rates that are currently lower than commercial rates and apply to Nigerian businesses that are members of the umbrella business groups in the country.

The move ensures that not only can Nigerian businesses benefit from lower cargo rates, but Nigeria, in partnership with the business groups, to monitor trade levels with other African partners.

The move to stimulate industrialisation

Oduwole said that the AfCFTA establishment is the world’s largest trade area by number of countries.

She described the market as essential, as intra-African trade records, which have higher levels of trade in value-added products than trade with other regions.

According to the minister, the development directly affects Nigeria’s ambition to boost industrialisation, diversify exports, encourage business growth, stimulate employment, and achieve broad economic development.

Oduwole said:

“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."

Nigerian businesses to export goods cheaply

The minister expressed that Nigerian exporters have faced high logistic costs and delayed delivery when trading with other African countries.

She disclosed that the new corridor reduces delivery timelines from two months to days, and ensures that time-sensitive and perishable goods reach their destinations in good condition.

The Guardian reported that the AfCFTA is a solution by Africans for Africa, stating that the air corridor is not just a pilot programme but a pathway for Nigerian MSMEs to access and expand across Africa with confidence, reduced costs, shorter timeframes, and reduced risk.

According to her, on Monday, May 26, 2025, the government will launch an AfCFTA Market Insights/Intelligence Tool developed with UNDP to help businesses navigate regulatory hurdles and identify trends in East and Southern African territories.

She appreciated leading business groups, including NACCIMA, NASME, NASSI, WCCIMA, and other groups, for their close partnership in coordinating responsible exporters for the air cargo corridor.

FG ratifies the AfCFTA agreement

Legit.ng earlier reported that the Nigerian government officially signed, ratified and submitted its ECOWAS Tariff Offer to the African Continental Free Trade Area (AfCFTA), establishing zero import duties of 90% within Africa.

The critical step by Nigeria was announced at the AfCFTA Council of Ministers meeting in Kinshasa, Congo, reflecting the country’s interest in intra-African trade integration.

President Bola Tinubu endorsed the ECOWAS' schedule on tariff offers for Nigeria, which showed Nigeria’s plan to lead the continent’s trade future

FG announces date to begin new trade under AfCFTA

Legit.ng previously reported that preferential trade under the AfCFTA Guided Trade Initiative (GTI) was set to be launched by President Bola Ahmed Tinubu, in keeping with the administration's renewed hope agenda and the ambition of Africa's founding fathers to unite the continent in shared prosperity.

The Preferential Trade ceremony would be launched at the Apapa Port in Lagos on July 16, 2024, according to a statement seen by Legit.ng.

According to Olusegun Awolowo, national coordinator, Nigeria AfCFTA Coordination Office, Nigeria became the 34th AfCFTA State Party on July 7, 2019, after it signed the AfCFTA Agreement.

Source: Legit.ng