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FG moves to cut air cargo costs as Nigeria expands Africa export routes



Nigeria has expanded its air cargo export route across East and Southern Africa as the federal government moves to reduce freight costs for exporters.

 

Jumoke Oduwole, the minister of industry, trade and Investment, announced the development on Tuesday in a video posted on X.

 

Oduwole said the intervention was designed to address a structural barrier that had long constrained intra-African trade.

 

“This corridor is a response to a real problem,” she said.

 

The minister said Nigerian exporters have the capacity to access African markets, but are held back by the high cost of logistics.

 

“Nigerian businesses were ready to sell to Africa, but the cost of moving their goods was prohibitive,” she said.

 

Oduwole said freight charges previously ranged between $3 and $10 per kilogram (kg), a level she described as unsustainable for competitive trade within Africa.

 

 

“By the time those products arrived at their destination, they could no longer compete on price,” the trade minister said.

 

The cost burden, according to the ex-Ecobank board member, also shaped how some businesses moved goods across borders, forcing them into informal and often risky trade channels.

 

“To avoid these high costs, many Nigerian businesses sometimes relied on informal and high-risk channels to move their goods,” she said.

 

NEW AIR CARGO RATES FOR KEY AFRICAN ROUTES

 

 

Under the expanded corridor, new rates for exports originating from Lagos have been introduced across key African destinations.

 

A separate social media post by the minister showed that exports from Lagos to Kigali will attract a minimum charge of $100, with a rate of $1.4 per kilogram for shipments below 1,000kg and $1.2/kg above 1,000kg.

 

The Lagos to Johannesburg export rate is now set at a $120 minimum charge, with $1.9 per kilogram below 1,000kg and $1.7 per kilogram above.

 

Lagos to Harare is priced at a $110 minimum charge, with $1.8 per kilogram below 1,000kg and $1.5 per kilogram above 1,000kg.

 

 

The post said exports from Lagos to Lusaka will now carry a $110 minimum charge, with $1.8/kg below 1,000kg and $1.6/ kg above.

 

The minister said the trade corridor was first launched in 2025 in partnership with Uganda Airlines, opening routes to Entembe, Nairobi and Johannesburg as part of efforts to deepen trade under the AfCFTA framework.

 

 

Oduwole said the initiative has since delivered significant cost reductions, with cargo rates falling by as much as 75 percent on the corridor.

 

“One year on, the results speak for themselves,” she said.

 

 

The minister said early implementation saw participation from five women-led enterprises, which moved the first consignment to Kenya on May 25, 2025.

 

“They showed the way, and many others have followed,” Oduwole said.

 

 

FG’S PARTNERSHIP WITH RWANDA AIR

 

Oduwole said the initiative has now been expanded through a new partnership with Rwanda Air, introducing additional routes to Kigali, Lusaka, Harare, and Johannesburg, with rebated cargo rates pushing freight costs to under $2 per kilogram on select routes.

 

“With Uganda Airlines and RwandAir operating on this corridor, Nigerian exporters now have more affordable options to reach more destination markets quickly,” she said.

 

The minister said the expansion forms part of broader efforts to strengthen regional trade integration and boost non-oil exports under the AfCFTA framework.

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