Discounted Freights 75% Cheaper Than Commercial Rates, Says Oduwole
Discounted Freights 75% Cheaper Than Commercial Rates

As Nigeria seeks to expand its footprint within the African Continental Free Trade Area (AfCFTA), the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, has called on exporters to leverage the newly activated dedicated air cargo corridor linking Lagos to five major cities across East and Southern Africa. She emphasized that this initiative offers substantially reduced freight charges as part of a broader effort to accelerate the nation's participation in regional and continental trade expansion.

Discounted Freight Rates Unveiled

The initiative, implemented in collaboration with RwandAir Cargo and the United Nations Development Programme (UNDP) Regional Bureau for Africa, provides rebated cargo rates that are between 50% and 75% cheaper than standard commercial air freight options, the minister stated. She described this as a significant cost intervention that directly tackles one of the most persistent barriers to Nigerian export competitiveness on the continent.

Route-Specific Pricing Structure

The corridor covers five routes from Lagos, each with a tiered pricing system designed to accommodate both small-scale and high-volume exporters. Shipments under 1,000 kilogrammes and those exceeding that threshold attract different per-kilogramme rates, with a minimum charge applicable in all cases.

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  • Lagos to Kigali, Rwanda: Minimum charge of $100. Shipments below 1,000 kg are billed at $1.4 per kg, while those above 1,000 kg attract a reduced rate of $1.2 per kg.
  • Lagos to Nairobi, Kenya: Minimum charge of $100. Below 1,000 kg, the rate is $1.7 per kg, dropping to $1.5 per kg for larger consignments.
  • Lagos to Harare, Zimbabwe: Minimum charge of $110. Rate of $1.8 per kg for shipments below 1,000 kg and $1.6 per kg above that threshold.
  • Lagos to Lusaka, Zambia: Minimum charge of $110, with identical per-kilogramme rates of $1.8 below 1,000 kg and $1.6 above it.
  • Lagos to Johannesburg, South Africa: Highest minimum charge at $120. Rates are $1.9 per kg for shipments below 1,000 kg and $1.7 per kg above that volume.

Newly Activated Routes

Three of the destinations—Kigali, Harare, and Lusaka—are newly activated routes, expanding Nigeria's formal air cargo network into Rwanda, Zimbabwe, and Zambia for the first time under this programme. Nairobi and Johannesburg represent existing points of connectivity now enhanced with the rebated rate structure.

Onward Connectivity

By partnering with RwandAir, the ministry has unlocked onward connectivity to markets across Central, East, and Southern Africa beyond the five primary destinations. For instance, a consignment flown into Kigali can be routed onward to Bujumbura, Entebbe, Dar es Salaam, or Lilongwe under RwandAir's existing network, broadening the effective reach of each Lagos departure.

Transformative Impact on Exporters

The minister noted that the commercial impact of the rebated rates is material. At the announced pricing, a 500 kg shipment of processed foods or manufactured goods from Lagos to Nairobi would incur a freight cost of approximately $850. For exporters of high-value, time-sensitive goods such as fresh produce, pharmaceuticals, fashion apparel, and light manufacturing, the cost differential is transformative and removes a key impediment to price competitiveness.

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