Why FedEx is Launching a Direct Commercial Presence in Nigeria after 28 yrs of Operation
Nigeria is not just the most populous black nation on earth, but also the largest and fastest-growing economy in Africa, with the African Development Bank projecting an average growth rate of 3.2% between 2022 and 2023. These factors, combined with the country having one of the largest diaspora populations, estimated at 15 to 17 million, and remittances totaling $20 billion in 2021, second only to Egypt in Africa, make Nigeria not only appealing for citing businesses, but also a very strategic getaway to other African markets for businesses like FedEx.
These explain why FedEx Express, a subsidiary of FedEx Corp. and the world’s largest express transportation company providing fast and reliable delivery to more than 220 countries and territories across the globe that has been facilitating trade in Nigeria since 1994, offering its international solutions through Red Star Express Plc yesterday announced launching a direct commercial presence in Nigeria, to support Nigerians with international trade and meet the country’s growing international shipping demands.
Due to the company’s direct presence in Nigeria, businesses and customers in the country will have greater access to a broader portfolio of FedEx Express shipping solutions. Furthermore, the company will continue to rely on the capabilities and infrastructure of the service provider, Red Star Express Plc, which will continue to provide pick-ups, deliveries, customs clearance services, and retail locations throughout the country.
Customers will also have access to a variety of FedEx digital tools that will make the shipping faster and easier through the site. Opening a new account, tracking shipment status, creating shipping air waybills, scheduling courier pickups, and managing bills are all some of these services. FedEx will also have dedicated Sales and Customer Technology teams on the ground to interact with local businesses and provide enhanced logistics expertise to help them grow internationally.
What FedEx VP MEA is Saying
Commenting on the development, Taarek Hinedi, vice president for FedEx Middle East and Africa operations said, “Today we are closer to our customers than ever before. This strategic step makes it easier for local businesses to ship with us as they look to tap more import and export opportunities and grow their customers around the world.”
“Nigeria is on the right path for further growth and FedEx is committed to supporting this growth and connecting Nigeria to some of the biggest trading partners located in Asia and Europe. The FedEx network is crucial to provide businesses with greater connectivity between Africa and Europe as well as within the Asia Pacific, Middle East, and Africa region.”
FedEx is committed to supporting the Nigerian Government’s Economic Recovery and Growth Plan (ERGP), as the nation is on the right path for further growth to drive structural reforms to diversify its economy and reduce dependency on oil. The FedEx direct presence in the country will help connect Nigerian business owners, exporters, importers, and consumers to more than 220 countries and territories worldwide, covering more than 99% of the world’s gross domestic product.
Hinedi further said, “As Nigeria continues with its 2021 to 2025 National Development Plan to increase the share of its exports to Africa up to 35% from a base figure of 20%, businesses will require a range of international services and solutions to help boost the economy.”