Strengthening Ties: Exploring Trade Relations Between Nigeria and Uganda

The Federal Republic of Nigeria and the Republic of Uganda have a long history of excellent relations across various fronts, dating back to the pre-independence era when citizens of both countries interacted informally in London and during war campaigns led by Britain. These initial contacts were further strengthened when both countries attained independence in the 1960s. Ever since, relations between Nigeria and Uganda have been very warm, fruitful, and cordial. They often hold similar views on major political, economic, and social issues of international concern.

Actual diplomatic relations were elevated to Ambassadorial level in 1982 when Nigeria appointed its first High Commissioner to the Republic of Uganda. Since then, there has also been deepened exchange of presidential and other high-profile visits between Nigeria and the Republic of Uganda. In 2011 both President Goodluck Ebele Jonathan and President Yoweri Kaguta Museveni exchanged visits by attending each other’s swearing-in ceremony that year. Also in 2013, President Museveni accepted an invitation from President Jonathan to be a guest lecturer at the convocation ceremony of the Nigerian Institute of Advanced Legal Studies held on 4th December 2013. President Museveni also honored an invitation to deliver an inaugural lecture at the National Defence College, Abuja on 16th September 2017. Other high-profile visits to Uganda were embarked upon by former Head of State Yakubu Gowon and former President Olusegun Obasanjo in 2014 and 2015. President Obasanjo also headed the Commonwealth Election Monitoring Group during the February 2016 Presidential and Parliamentary elections in Uganda.

The Federal Ministry of Arts, Culture, Tourism and Creative Economy has reaffirmed Nigeria's commitment to strengthening cultural ties with Uganda. The Minister, Barrister Hannatu Musa Musawa made this known on Tuesday in Abuja, when a 27-man delegation comprising senior military officers from Uganda paid her a courtesy visit. Minister Musawa who was represented by the Head of Department, Cultural Industries and Heritage, Rev. Canon Anamah N.U.B, Ph.D stated that Nigeria and Uganda have a long-standing relationship which dates back to the 1960s, with both countries sharing similar historical experiences, including struggles with colonialism, ethnic civil crises, and religious differences.

Minister Musawa also highlighted its ambitious plans to develop Nigeria's creative economy, with a focus on innovation, entrepreneurship, and job creation. She emphasized the importance of cultural exchange and cooperation between Nigeria and Uganda. “Our mandate is to present, preserve, and promote Nigeria's rich cultural heritage. In line with President Tinubu’s Renewed Hope Agenda, the Ministry is committed to achieving economic growth and job creation through our skill acquisition and capacity-building programmes across the six geopolitical zones of the federation.

The Minister said that the collaboration is part of Nigeria's broader strategy to promote Pan-Africanism and foster greater regional integration.

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Bilateral Agreements and Cooperation

The relationship between Nigeria and Uganda is one of cooperation, mutual respect, and a shared commitment to regional and international development. In terms of cooperation, Nigeria and Uganda have signed several bilateral agreements, including a Technical Aid Corps agreement in 1988, a Bilateral Trade Agreement in 1990, and Technical Cooperation in 1990 to mention but a few. The two countries have also collaborated on regional and international issues related to peace, security, trade, and economic development.

In a significant move to strengthen trade and economic ties, Nigeria’s High Commissioner to Uganda, H.E. Ambassador John Shama Shaga, paid a courtesy call on the Head of the State House Anti-Corruption Unit (SH-ACU), Brig. Gen. Henry Isoke, and his team. The two parties highlighted the long-standing cooperation between Nigeria and Uganda and noted that this relationship can be significantly enhanced through bilateral trade, particularly under the framework of the African Continental Free Trade Area (AfCFTA).

Brig. Gen. Isoke and Ambassador Shaga engaged in a fruitful discussion on practical ways in which the SH-ACU and the Nigerian High Commission can work together to protect investors from deceptive practices. They noted that fraudsters frequently target foreign investors with elaborate scams involving fake government contracts, counterfeit mineral deals, and fraudulent land transactions. Both parties concluded the meeting with a shared commitment to building a robust framework for intelligence sharing and mutual support. This collaboration is set to become a cornerstone of their joint efforts to ensure that the promise of increased bilateral trade under AfCFTA is not undermined by corruption and fraud.

The African Continental Free Trade Area (AfCFTA) and Trade Expansion

Abuja, 25 May 2025 - Nigeria has launched its first intra-African air cargo corridor to East and Southern Africa in partnership with Uganda Airlines - marking a major milestone in operationalizing the African Continental Free Trade Area (AfCFTA) and expanding market access for Nigerian exporters. The new route, facilitated by the United Nations Development Programme (UNDP) in close collaboration with the Federal Ministry of Industry, Trade and Investment (FMITI), is the outcome of months of technical discussions to address long-standing logistics challenges facing Nigerian businesses. With support from the government agencies and Organised Private Sector (OPS), UNDP facilitated the negotiations between Uganda Airlines and Nigerian business associations to explore a practical, cost-effective trade link. The result is a dedicated West-East/Southern Africa air corridor-anchored in Abuja and Lagos and now offering discounted, consolidated cargo services to Uganda, Kenya and South Africa. Freight rates have been reduced by as much as 50% in some instances, directly addressing prohibitive costs and delivery delays that have limited the competitiveness of Nigerian goods across the continent.

The corridor was formally launched during a flag-off ceremony at Nnamdi Azikiwe International Airport, attended by Dr. Jumoke Oduwole, Hon. Minister of Industry, Trade and Investment; Ms. Elsie Attafuah, UNDP Resident Representative; and representatives from Uganda Airlines, government agencies, members of the diplomatic corps and the private sector. The first shipment included exports from five MSMEs in cosmetics, agro-processing, and fashion. These entrepreneurs expressed strong optimism about the new corridor. UNDP’s Elsie Attafuah emphasized the transformational potential of this initiative: “This corridor is one of great opportunity. It connects our entrepreneurs to new markets, unlocks jobs, and brings the AfCFTA to life in a practical, inclusive way. UNDP is proud to have helped make this possible.” The Nigeria-East/Southern Africa air cargo corridor is a blueprint for rethinking trade logistics across Africa.

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Announcing trade arrangements between Nigeria and Uganda in Abuja, the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, said, “Today, we have taken the next critical step. The timing of this launch is particularly significant following the President’s approval of the AfCFTA Tariff Schedule, which has now been enacted.

She explained that trade trends in high-potential sectors such as agriculture, cosmetics, and textiles are top priorities. “These sectors were not chosen by accident-the data speaks for itself. Our imports from these regions are heavily skewed towards finished and higher-value products. In cosmetics, Nigeria is home to over 250 indigenous brands, yet our market penetration into Eastern and Southern Africa remains below five per cent.

These sectors were not chosen by accident-the data speaks for itself. Our imports from these regions are heavily skewed towards finished and higher-value products. In cosmetics, Nigeria is home to over 250 indigenous brands, yet our market penetration into Eastern and Southern Africa remains below five per cent.

“As Africa awakens to its economic potential, it becomes evident that domestic markets alone are not sufficient. The first shipment, expected in the first quarter of 2025, will include coffee, black and green tea, milk, fish, and pharmaceuticals. The pilot consignment aims to assess market demand in Nigeria and lay the groundwork for further trade expansion. Museveni commended President Bola Tinubu for supporting the initiative and facilitating the entry of Ugandan products into the Nigerian market.

During the Nigeria-Uganda Trade Dialogue Webinar on Wednesday, May 7, 2025, Mr. However, he expressed optimism about new opportunities on the horizon. “Transport and logistics have been a bottleneck in strengthening trade between Uganda and Nigeria. But with the launch of direct flights by Uganda Airlines to Lagos and Abuja, we now have a real opportunity to overcome this hurdle,” Mr.

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He encouraged the private sector in both countries to take advantage of these new air routes for trade in goods and services. “These routes must be fully utilized, not just for cargo but for business travel, investment, and services. Mr. Ndorere also hinted at new opportunities in the creative economy, noting the global reach of Nigeria’s Nollywood industry. “Uganda’s tourism can benefit from Nollywood Trade Services, film, fashion, and cultural storytelling.

Speaking on trade systems, Mr. Ndorere addressed Uganda’s progress and challenges with the Certificate of Origin and the Single Window Trade System, particularly under the African Continental Free Trade Area (AfCFTA). On Rules of Origin, Uganda is largely compliant with AfCFTA guidelines, with ongoing discussions on a few sensitive sectors. “All Ugandan products are cleared in agreement with AfCFTA except three: textiles, mobile phones, and fisheries. Negotiations on these are still in progress,” Mr.

Mr. Morris Ongwech, Cargo Manager, Uganda Airlines, encouraged Ugandan exporters to improve the quality of product packaging and increase their cargo volumes for better freight rates. He appreciated PACEID for negotiating lower cargo rates for Ugandan exporters.

The virtual dialogue was coordinated by the Presidential Advisory Committee on Exports and Industrial Development (PACEID) in Uganda and organized by Uganda’s Trade Representative to Nigeria, Mr. Ani Charles Bassey-Eyo. It aimed to identify barriers to bilateral trade and create actionable strategies to unlock trade and investment between the two nations.

Undoubtedly, digital diplomacy and online communication has become one of the bequeathals of the Covid-19 pandemic. Online communication is now the veritable tool of communication across the globe.

Tourism is one of the growing sectors of the Nigerian economy. Nigeria offers an ample array of tourist attractions, including extended and capacious river and ocean beaches, suitable for swimming and other aquatic sports, unique wildlife, vast tracts of unspoiled nature ranging from tropical forests, splendid waterfalls, old and modern cities with clement weather conditions conducive to holidaying. Other attractions include traditional ways of life preserved in local customs; rich and varied handicrafts, colourful products illustrative of local arts, and very warm welcoming population. The Nigerian tourism sector presents ample potentials for investment.

Maps of Nigeria and Uganda.

Trade Statistics and Opportunities

Here's a table summarizing key aspects of the Nigeria-Uganda trade relationship:

Aspect Details
Bilateral Agreements Technical Aid Corps agreement (1988), Bilateral Trade Agreement (1990), Technical Cooperation (1990)
Key Sectors Agriculture, cosmetics, textiles, creative economy (Nollywood)
Trade Barriers Transport and logistics, product packaging quality
AfCFTA Compliance Uganda largely compliant, ongoing discussions on textiles, mobile phones, and fisheries
Initiatives Intra-African air cargo corridor, direct flights by Uganda Airlines

The Nigeria-East/Southern Africa air cargo corridor is a blueprint for rethinking trade logistics across Africa.

“This gives us a real chance to be visible in other African markets,” shared one exporter. Another noted, “Being able to deliver faster, at half the cost, changes everything. We can now think bigger.”

5 SIMILARITIES BETWEEN NIGERIA AND UGANDA|

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tags: #Nigeria #Uganda