Log In

FG Unveils Air Cargo Corridor with 50% Discount for Exporters

Published 1 month ago3 minute read
FG Unveils Air Cargo Corridor with 50% Discount for Exporters

The Federal Government has launched the Nigeria-East/Southern Africa Air Cargo Corridor in partnership with the United Nations Development Programme (UNDP) and Uganda Airlines. This initiative aims to transform exports under the African Continental Free Trade Area (AfCFTA) framework.

Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, announced the launch on Africa Day at Nnamdi Azikiwe International Airport, Abuja. The new air corridor will provide Nigerian exporters access to key African hubs in Uganda, Kenya, and South Africa, with air cargo rates discounted between 50-75 per cent, significantly reducing logistics costs, including regulatory charges.

Dr. Oduwole emphasized that this initiative marks a major milestone in realizing the AfCFTA for Nigerian businesses, particularly micro, small, and medium-sized enterprises (MSMEs). The corridor is designed to lower the cost of freighting goods from Nigeria to East and Southern African countries, offering special rates that are 50 per cent lower than commercial rates for members of umbrella business groups in Nigeria.

The Minister highlighted that this initiative fulfills President Bola Ahmed Tinubu’s promise to diversify Nigeria’s non-oil exports by leveraging AfCFTA opportunities. The Federal Government is committed to supporting Nigerian businesses in expanding their exports across the continent, enabling them to enter African markets with greater confidence, lower costs, faster delivery timelines, and reduced risks.

Dr. Oduwole noted that the establishment of AfCFTA has created the world’s largest free trade area by the number of countries. Intra-African trade records higher levels of trade in value-added products compared to trade with other regions, directly impacting Nigeria’s ambitions to industrialize, diversify exports, encourage business growth, stimulate job creation, and achieve broad economic development.

The air corridor, commencing from Lagos and Abuja, is more than a logistics initiative; it is a strategic trade enabler that accelerates regional integration and unlocks new opportunities for Nigerian exporters. It addresses the challenges of steep logistics costs and long delivery times faced by Nigerian exporters trading with African partners, reducing delivery timelines from months to days and ensuring time-sensitive, perishable goods reach their destinations in optimal condition.

The Minister stressed that this air corridor is a pathway for Nigerian MSMEs to expand across Africa with greater confidence, lower costs, shorter time frames, and reduced risk. The government will also launch an AfCFTA Market Insights/Intelligence Tool, developed with UNDP, to help businesses understand regulatory requirements and identify trends in East and Southern African countries.

Dr. Oduwole thanked Nigeria’s leading business groups – NACCIMA, NASME, NASSI, WCCIMA, and others – for their collaboration in coordinating credible exporters for the air cargo corridor. She also expressed gratitude to the Government of Uganda and Uganda Airlines, as well as the leadership of UNDP Regional Bureau for Africa, for their support.

Dr. Oduwole acknowledged the contributions of the Minister of Finance, the Coordinating Minister of the Economy, the Minister of Aviation, the Comptroller General of the Nigeria Customs Service, and the MD/CEO of the Federal Airports Authority of Nigeria for facilitating the successful launch.

From Zeal News Studio(Terms and Conditions)

Recommended Articles

Loading...

You may also like...