Tinubu’s trade push: FG promotes Uganda Airlines corridor, slashes export costs by 75% 

The call was made by the Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, MFR, during an interview on MoneyLine with Nancy on African Independent Television (AIT) on Tuesday.

“Organised private sector negotiated a flat rate for air cargo with Ugandan airlines, which is a government-owned airline… to concretize this, an exporter who used to pay $1000 to ship goods by cargo is now paying $260. So, that is a 75% drop in charges.

“So, between 50 and 75% reduction of costs, this is the operationalization of the AfCFTA. This is a campaign promise fulfilled by President Bola Tinubu, prioritizing intra-African trade. We then topped it up yesterday, launching a market intelligence tool with the UNDP that charts the course of where Nigerian goods are in demand in Southern and Eastern Africa,” she said.

She further announced the launch of a market intelligence tool developed in collaboration with the United Nations Development Programme (UNDP), which maps demand for Nigerian goods across East and Southern African countries. According to her, the initiative is designed to provide practical support to the private sector.

“Competition works,” Oduwole emphasized. “We’ve invited the Ethiopian Ambassador to Nigeria because we’re asking, ‘Ethiopian Airlines, where are you? AirPeace, where are you? Africa World Airlines, where are you?’ Uganda Airlines has taken the first-mover advantage, and we need other African carriers to step up. This is how intra-African trade will grow.” 

The Minister further said that Nigeria’s improved foreign exchange regime and growing macroeconomic stability are helping to attract new investors into the country—reversing the previous trend of mass exits by companies.

“To be honest, that tide has stemmed,” she said. “That was as a result of many things globally, including from COVID, companies were readjusting their supply chains and their production capabilities. We are seeing much less of that now. In fact, we are seeing investors coming in both in existing multinationals and newer ones trying to come in as well.” 

Commenting on the current administration’s economic reforms, she highlighted positive indicators that are reinforcing investor confidence.

“I’m not worried about that because you can see the Fitch ratings, the perception out there, the NNPC reforms, the Investment and Securities Act, the Tax Reforms Bill, and so many signals to the private sector,” she said.

Dr. Oduwole emphasized that President Bola Tinubu has been intentional about attracting foreign direct investment through his international engagements.

“Mr President has raised $50.8 billion as of December 2024 and is tracking that, making sure that it comes in. NIPC is working on that also. The private sector is bullish about the Nigerian economy. So, things are going well,” she noted.

Addressing concerns about major corporate exits, she clarified that many were shareholder decisions rather than complete business withdrawals.

“You’re talking about big exists, but some of them, it’s not as if those businesses are… to exit. When some shareholders are exiting, others are taking up the space and injecting more investments,” she explained.

The new cargo corridor, developed in partnership with Uganda Airlines and facilitated by the UNDP in collaboration with the Federal Ministry of Industry, Trade and Investment (FMITI), marks a major milestone in operationalizing the African Continental Free Trade Area (AfCFTA).

The route was the result of extensive technical discussions aimed at resolving long-standing logistics challenges faced by Nigerian exporters.

The route was the result of extensive technical discussions aimed at resolving long-standing logistics challenges faced by Nigerian exporters.

Through coordinated support from government agencies and the Organised Private Sector (OPS), the initiative is set to provide Nigerian businesses with cost-effective access to new markets in the region.

According to the UNDP, the Nigeria–East/Southern Africa air cargo corridor is a blueprint for rethinking trade logistics across Africa.