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Nigeria’s new air trade route to boost intra African trade

Nigeria has launched a new air trade route in partnership with Uganda Airlines to connect Nigerian exporters with key African markets: Uganda, Kenya, and South Africa. The air corridor aims to cut export and logistics costs, including regulatory fees, by 50% to 75%, making it cheaper and easier for Nigerian businesses to trade.

This initiative is part of Nigeria’s implementation of the African Continental Free Trade Area (AfCFTA), and is expected to boost local businesses, aiding revenue growth and supporting economic growth. In 2024, trade between Nigeria and other African countries totalled $7.34bn, representing 8% of Nigeria’s overall trade volume.

However, poor infrastructure at Nigerian airports poses a significant risk. Most facilities lack the efficiency and capacity to handle increased export volumes, potentially negating the expected cost savings. Without urgent upgrades and streamlined operations, this promising initiative could fall short of its full potential.

Nigeria’s economic growth agenda – prioritizing strategy over dreams

Nigeria has never lacked big visions—only the grit to deliver them. From Vision 20:2020 to the new $1 trillion GDP dream by 2030, ambition has consistently outpaced execution. With GDP currently at $188 billion before rebasing and expected to rise to $400–$450 billion after rebasing, reaching the $1 trillion target would require an annual growth rate of approximately 17.3%. This is nearly impossible without a radical shift in strategy.

The facts are humbling. Sixty years ago, Nigeria was at par in terms of GDP & income per capita with most Southeast Asian countries and ahead of its sub-Saharan African Peer Nations. Today, Nigeria has outstripped its peers in population growth (220mn) and has fallen behind as far as productivity and output is concerned. The result is an economy that needs a reset and badly needed institutional reforms.

To achieve global competitiveness, Nigeria must go past rhetoric and embark on aggressive energy plan, and a human capital development agenda.

In this latest edition of Whispers, the FDC Think Tank takes a deep dive into recent economic developments and their impact on your business and corporate strategy.