Nigeria’s AfCFTA air route slashes costs

30-05-2025

Nigeria’s AfCFTA air route slashes costs

NIGERIA has launched a new air corridor under the African Continental Free Trade Area (AfCFTA), aimed at fast-tracking exports to Kenya, Uganda, and South Africa while cutting logistics costs for local exporters by as much as 75 percent.

Announced by Industry, Trade and Investment Minister Dr Jumoke Oduwole on Africa Day, the initiative is part of Nigeria’s broader strategy to enhance its competitiveness across African markets by removing transport and tariff barriers.

‘On Africa Day, we launch a bold new air corridor linking Nigerian goods to AfCFTA markets—via Uganda Airlines—cutting logistics costs by 50–75 percent,’ Dr Oduwole wrote on her official X (formerly Twitter) account.

The route, which will be operated by Uganda Airlines, is expected to facilitate the export of Nigerian-made cosmetics, textiles, and agro-products—offering faster, more cost-effective access to East and Southern African markets.

Cost-cutting boost for Nigerian exporters

The Ministry estimates that exporters could save between 50 percent and 75 percent in logistics costs depending on the product category and destination. These savings, officials say, could transform the economics of cross-border trade for Nigerian manufacturers and SMEs.

Crucially, the launch coincides with another milestone: Nigeria has now officially gazetted its AfCFTA tariff schedule. This activates a raft of lower tariffs, enabling Nigerian businesses to trade under preferential terms with other African countries.

The tariff reform is part of Nigeria’s phased commitment to eliminate duties on 90 percent of goods traded within AfCFTA over 10 years. By 2025, Nigeria has already slashed tariffs by 50 percent for least-developed African countries and 100% for developing country trade, all within the AfCFTA framework.

Nigeria pushes deeper into AfCFTA integration

The AfCFTA, which officially began trading in 2021, is the largest free trade area in the world by number of countries involved, aiming to boost intra-African trade and reduce reliance on external markets. Nigeria, Africa’s largest economy, has recently stepped up efforts to lead its implementation.

In April 2025, Nigeria submitted its full ECOWAS Tariff Schedule to the AfCFTA Secretariat—clearing the way for zero duties on eligible goods. The move reinforces Nigeria’s readiness to operationalise the agreement’s protocols and extend its reach beyond West Africa.

Vice President Kashim Shettima has emphasised AfCFTA’s role in job creation and digital trade, saying the Digital Trade Protocol could raise intra-African trade from 18 percent in 2022 to 50 percent by 2030. The protocol is expected to particularly benefit SMEs and tech-driven exporters.

Building infrastructure for trade

By introducing the air corridor, Nigeria hopes to tackle one of the biggest barriers to intra-African commerce—high logistics costs. The Ministry says this move, along with tariff reform and digital trade facilitation, positions Nigerian businesses to compete more effectively continent-wide.

The government reaffirmed its commitment to supporting local exporters through infrastructure, policy alignment, and cross-border partnerships under the AfCFTA.

With the air route now open and tariff structures aligned, Nigerian exporters are expected to gain faster, cheaper access to new markets—bringing the country one step closer to realising the full potential of the continental trade agreement.

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