Nigeria, RwandAir partner to accelerate export routes under AfCFTA

58 For years, the ambition of the African Continental Free Trade Area (AfCFTA) existed primarily as a diplomatic ideal. For the Nigerian exporter, the reality was far less romantic, defined by prohibitive logistics costs that stripped away the price competitiveness of local goods. As Africa’s most populous nation, Nigeria possesses the scale to dominate regional markets, but high cargo fees acted as a functional tariff, keeping goods grounded.

Slashing Cargo Costs from US$10 to Under US$2

The economic friction facing Nigerian exporters was stark. Before the establishment of the air cargo corridor, businesses shipping goods to East and Southern Africa faced cargo costs ranging from US$3 to as high as US$10 per kilogram. These rates made trade prohibitive. When logistics costs eat into margins, the final price of the product becomes uncompetitive in the destination market, regardless of the quality of the goods. The new agreement with RwandAir aggressively corrects this imbalance. Cargo rates on the RwandAir routes are now set at under US$2 per kilogram for all five destinations. This represents a significant reduction in the cost of entry for Nigerian businesses looking to scale their reach. This is not the first time the government has targeted these costs. On Africa Day 2025, the ministry launched the corridor through a partnership with Uganda Airlines, which provided tiered and rebated rates of up to 70 per cent below those of other commercial carriers for exports to Entebbe, Nairobi, and Johannesburg. The RwandAir deal essentially institutionalizes this cost-reduction strategy, ensuring it is not dependent on a single carrier.

Expanding the Map to Kigali, Harare, and Lusaka

The partnership with RwandAir does more than lower costs; it expands the geographical footprint of Nigerian trade. The corridor now extends to three new primary destinations: Kigali in Rwanda, Harare in Zimbabwe, and Lusaka in Zambia. Beyond these new markets, the agreement introduces critical redundancy to existing routes. Nigerian exporters now have a second choice of carrier for shipments to Nairobi and Johannesburg, reducing the risk of bottlenecks and providing more flexibility in scheduling. This expansion is scheduled to be formally inaugurated in June 2026. By diversifying the destinations and the carriers, the government is attempting to build a resilient logistics network that can withstand the volatility of the aviation sector.

Driving Non-Oil Export Growth to US$207 Million

The strategy is already producing quantifiable data. The shift toward a “whole-of-economy” approach to AfCFTA is reflected in the rising value of non-oil exports. According to Dr. Jumoke Oduwole, the Minister of Industry, Trade and Investment, Nigeria’s non-oil exports to other African markets rose from US$150 million in 2024 to US$207 million in 2025. This growth suggests that the demand for Nigerian goods in African markets is strong, but the supply chain was the primary bottleneck. By widening the air cargo corridor, the ministry is betting that the cost of transport will no longer be the deciding factor in whether a Nigerian business can compete in East or Southern Africa.

Making AfCFTA Work in Practice

The core objective of this initiative is the transition from policy to practice. For too long, trade agreements have been viewed as paperwork exercises—treaties signed in capitals that never reached the warehouses of small and medium enterprises. “One year ago, we promised that the AfCFTA would work in practice for Nigerian businesses, not only on paper. We set out to solve a practical problem: Nigerian businesses have goods that African markets want, but the cost of cargo was too high.” Dr. Jumoke Oduwole, Minister of Industry, Trade and Investment The corridor is a tactical response to a logistics failure. By partnering with state-backed carriers like Uganda Airlines and RwandAir, the Nigerian government is essentially subsidizing the “last mile” of international trade to ensure its exporters can actually reach their customers. The success of this model depends on the ambition of the private sector. While the government has created the enabling environment by slashing rates and opening routes, the next phase of growth will rely on whether Nigerian exporters can scale their production to meet the needs of these newly accessible markets. As the corridor expands, the focus shifts from merely reducing costs to maximizing volume. With Kigali, Harare, and Lusaka now within reach at under US$2 per kilogram, the barrier to entry has vanished. What remains is the execution.