Uganda-Nigeria business community seek removal of trade barriers

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ABUJA – The business community in Nigeria have applauded the Government of Uganda for facilitating Uganda Airlines to open a second flight route to Abuja in less than a year after launching the Entebbe-Lagos non-stop flight.

The businesspeople however asked the two Governments to expeditiously sort out what they termed as hindrances to smooth trade between the two countries for them to benefit from the opportunities created by the new connectivity.

Stakeholders asked the Nigerian and Ugandan Governments to expeditiously sort out what they termed as hindrances to smooth trade between the two countries for them to benefit from the opportunities created by the new connectivity. (Credit: Eddie Ssejjoba)

They singled out high visa fees charged by the Nigeria High Commission in Kampala, which they said at $192 for online payment and $212 for cash was annoying and uncalled for.

Uganda High Commission in Abuja, on the other hand, said, charges of $50, are far less.

The business personnel also complained that the delay in issuing out visas to applicants by Uganda’s mission was a big hindrance to the country’s trade and tourism sector.
In some instances, they noted, an applicant waits for 30 days before being issued with a visa. Others asked the two Governments to either waive visa fees completely or issue them on arrival at the respective airports since there was evidence that the two countries had established brotherly relationships.

During the first Nigeria-Uganda Business Forum held at Fraser Suites in Nigeria’s capital Abuja on September 13, 2024, many participants, including Chiefs agreed that they were uncomfortable with the existing hindrances to travel.

During the first Nigeria-Uganda Business Forum held at Fraser Suites in Nigeria’s capital Abuja on September 13, 2024, many participants, including Chiefs agreed that they were uncomfortable with the existing hindrances to travel. (Credit: Eddie Ssejjoba)

The forum, organized by the Uganda High Commission in Abuja was intended to celebrate the Uganda Airlines inaugural flight to Abuja on September 12, 2024.

The brand new UR900 airbus (A330-800neo aircraft) touched ground at about 6:22pm Nigerian time at the Nnamdi Azikiwe International Airport and received a water canon salute.

The three-and-half hour journey was termed a ‘sweet dream come true’ by many Nigerians in Abuja who had never received a direct flight from any East African nation.

Uganda’s High Commissioner to Nigeria, Nelson Ocheger organised the forum. (Credit: Eddie Ssejjoba)

The Ugandan delegation at the Forum was led by the state minister for transport, Fred Byamukama, and included Uganda’s High Commissioner to Nigeria, Nelson Ocheger who organized the forum.

Others on the Ugandan team were three Members of Parliament on the physical infrastructure committee, board members of Uganda Airlines, National Planning Authority and a team from Victoria University that was in Abuja to scout for students seeking higher education in Uganda.

The chairperson Nigeria Business Community in Uganda, Hauwa Muhammad (R), remarks. (Credit: Eddie SSejjoba)

It emerged at the forum that Kenyans going to Nigeria were paying $25 for a visa.
Hauwa M. Mohammad, the Chairperson of the Nigerian Community in Uganda complained that Nigerians often wait for days and weeks to process a visa at Uganda’s high commission, for unspecified reasons.

“To get a visa for a Nigerian is not easy, it used to take a few days but today it takes longer, why open the skies and close the doors,” she told the forum amidst clapping from participants.
She said when they asked, they were told that the delay was meant to make checks and balances.

“We accept that explanation, but we need to work on it vigorously,” she said, adding that her friend, a Briton in Nigeria spent 30 days waiting on the visa application to Uganda.
She appealed to the authorities to make visa applications as easy as possible.

Huawa however said many Nigerians were looking forward to buying a lot of goods from Uganda including fruits, milk and milk products, among others.
“In Uganda, if you need fresh items like fruits, milk and others you will get them instantly and in plenty. For milk it can even reach here when still hot,” she said, adding that there was no need for Nigerians to go to Europe to get milk products.

“In just three hours to Abuja or four hours to Lagos, if you wanted any amount of milk from Uganda, it is available, the way you see tanks here distributing water is the way tanks distribute milk in Uganda, the tomatoes from Uganda are as fresh as anything you can think of, and they take days to get spoilt. Fruit and vegetables are everywhere, we may not need investors now, but just allowing simple trade to thrive,” she said, adding that if trade barriers were removed, it would attract many businesses in real estate, education, agriculture and others.

Uganda Airlines head of public relations and corporate affairs Shakila Rahim Lamar. (Credit: Eddie Ssejjoba)

Chief Michael Awunor, president of the Nigeria-Uganda Chamber of Commerce said that Uganda and Nigeria were like brothers and ought to put in place things that can enhance issues of trade, connectivity and visa.

“Uganda Airlines will have a seamless situation in Nigeria, and people will no longer need to go to London in order to connect to Kampala, but we need the two governments to work on the visa issues, we should have visa on arrival in both countries,” he said, adding that they may visas to other countries in Europe but not with ‘our brothers’.

He asked for either a visa on landing or free entry.
Minister Byamukama admitted that visas were still expensive and represented a significant barrier to travel.

“For instance, a Ugandan traveller needs to pay about USD200 to acquire a visa to Nigeria, this on average represents two to three bed nights for someone wishing to visit and explore new places in Nigeria,” he explained.

He added that without visa fees, the money saved would still enter the two respective economies due to increased travel and business.

The Ugandan delegation at the Forum was led by the state minister for transport, Fred Byamukama (L). (Credit: Eddie Ssejjoba)

“We therefore request the two governments for a review of the visa regime between our respective nations to promote inter-Africa connectivity,” Byamukama told the forum.

He further explained, “Uganda Airlines route opens a gateway for the people of Abuja and Nigeria in general to travel through Entebbe hub to other parts of Africa, Asia and Europe and the Middle East. We therefore call upon the citizens of our brotherly countries to harness these opportunities and further develop cultural exchanges”.

Responding to the high visa fees, Gertrude Orji, the director of Investment Protection, who represented the minister of trade and investment, Doris Nkiruka Uzoka Anite pledged to pass it over to authorities for discussion.
“The direct flight will unlock the economic potential between the two countries and reduce travel time, increase efficiency and faster greater collaboration between the businesses. It will also enable the two countries to tap into new markets, access new customers and explore new opportunities that abound in our great nations”.

Orji noted that  Nigeria with a population of 200m, is a huge market for Ugandan investors and that it has potential for investment in crude oil, natural gas, limestone, zinc, lithium, coal, and others.

“I want to assure you that Nigeria is open to business, ever ready to partner and support Uganda businesses wishing to invest in our country,” she said.

Uganda Airlines will fly the crane, Airbus A330-800 neo aircraft to Abuja twice a week, Thursday and Sunday cutting the 10 or 14-hour journey to three and a half.

Elsie Attafuah, the United Nations Development Program (UNDP) Nigeria resident representative noted that the new direct flight from Entebbe to Abuja would not only cut travel time by over four hours and slash cargo costs but would open unprecedented doors for businesses in both regions.

“We also know that in 2022, Uganda’s exports to Nigeria were a modest $4.61m, while Nigeria’s exports to Uganda were only $471,000, imagine Uganda, with its nearly 4b litters of milk, this will for sure reduce Nigeria’s reliance on imported dairy,” she said and wondered why Nigerian supermarkets stock milk from halfway around the world when Uganda has got plenty.

“And let us not forget, Nigeria’s annual coconut production of nearly 300,000 metric tonnes, let us get coconut products rolling into Uganda, where they are in high demand,” she said.