Cargo cost to rise as FAAN plans 250% tariff hike

The Federal Airports Authority of Nigeria (FAAN)’s plan to implement a steep increase in cargo tariff has triggered strong opposition from freight forwarders and logistics operators, even as the Authority insists that recent operational reforms have strengthened revenue assurance and positioned it to justify the adjustment.

There are fears that the planned increment if allowed would add to the cost of sending cargoes and parcels across the locally and outside Nigeria’s shores.

FAAN has confirmed that an upward review of cargo tariffs, raising charges from N7 per kilogram to N25 per kilogram — representing an increase of over 250 per cent — will take effect from 2 February 2026.

The adjustment, which was initially scheduled for 2025 but deferred, has attracted criticisms from industry stakeholders who argue that the hike will significantly increase the cost of doing business and undermine Nigeria’s trade competitiveness.

According to FAAN, the decision to proceed with the tariff review follows the stabilization of cargo operations and the closure of major revenue leakages across airport terminals, particularly in Lagos and Abuja.

An operational report released by the Authority indicates that despite a decline in cargo throughput in 2025 compared to 2024, FAAN recorded improved revenue performance and higher collection efficiency due to targeted reforms implemented by its Cargo Development and Services Directorate.

The report highlights that one of the most impactful reforms was the relocation of FAAN operational personnel and revenue-collection desks back into cargo warehouses.

This move, FAAN said, addressed long-standing lapses in oversight and blocked leakages that had allowed revenue to be lost outside the official system. Enhanced monitoring of unaccompanied luggage further strengthened controls and reduced opportunities for abuse.

FAAN noted that the results of these reforms are particularly evident at the cargo facilities operated by the Nigerian Aviation Handling Company (NAHCO) Plc and Skyway Aviation Handling Company (SAHCO), where tighter supervision and process realignment have improved transparency and accountability.

A senior FAAN official, who spoke on condition of anonymity, said the Authority’s experience over the past year showed that increasing tariffs without first fixing systemic inefficiencies would not have delivered meaningful gains.

“Before now, even if we increased tariffs, a large portion of the revenue would still have been lost due to operational gaps,” the official said, adding, “The reforms were necessary to ensure that whatever revenue is due to FAAN is fully captured.”

The official disclosed that FAAN is now rolling out additional initiatives aimed at consolidating the gains recorded so far. Among these is a courier revenue optimisation framework designed to replace the existing billing structure with a per-kilogram charging model for courier operators. According to FAAN, the current system, which is based on aggregate shipment weight, has been exploited in ways that limit revenue collection.

By adopting a per-kilogram model, the Authority believes it can eliminate loopholes, improve fairness in billing, and enhance overall revenue generation from courier services, which form a growing segment of airport cargo operations.

FAAN is also intensifying collaboration with airlines, ground handling companies, licensed customs agents and the Nigeria Customs Service (NCS) to address revenue gaps associated with frequent-flyer baggage protocols. The Authority said inconsistencies in baggage handling and classification have historically contributed to revenue losses and operational disputes within passenger terminals.

In addition, FAAN said improved access-control measures across both cargo and passenger terminals are already delivering tangible benefits to stakeholders by reducing unauthorized access and strengthening operational discipline. Cargo infrastructure development and rehabilitation at the General Aviation Terminal (GAT) in Lagos, as well as the implementation of a structured cargo development roadmap for the Nnamdi Azikiwe International Airport, Abuja, also form part of the ongoing reform programme.

The Authority said it is further pushing for the integration of the National Single Window (NSW) platform, intensifying engagement with the implementation team to fast-track deployment.

FAAN believes the NSW will help address long-standing inefficiencies in documentation, clearance processes and revenue tracking across the air-cargo ecosystem.

Regulatory alignment has also been identified as a key focus area. FAAN said it is strengthening engagement with regulators such as the Nigeria Civil Aviation Authority (NCAA) and the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) to ensure that all cargo stakeholders operate in line with international best practices.

However, despite FAAN’s explanations, freight forwarding groups have protested against the proposed tariff increase.

Cargo agents kick

The Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) described the planned hike as excessive and poorly timed.

In a statement signed by its President, Otunba Frank Ogunojemite, APFFLON expressed deep concern over what it described as an unjustifiable increase in cargo charges, especially in light of other revenue streams available to FAAN, including government subvention.

The association argued that raising cargo charges from N7 to N25 per kilogram would significantly escalate the cost of air cargo operations, discourage exports, increase import costs and ultimately pass additional financial burdens on Nigerian businesses and consumers.

“This increase comes against the advice and objections of key industry stakeholders and will worsen the already high cost of doing business in Nigeria,” APFFLON said.

“It will undermine efforts to promote non-oil exports and make Nigerian goods less competitive in the international market,” it added.

APFFLON also queried the rationale behind the sharp increment, noting that the increase was being proposed in the absence of visible improvements in cargo infrastructure and service delivery at many airports.

“At a time when government policy is focused on trade facilitation and economic diversification, this decision sends the wrong signal to investors and exporters,” the association said.

The group called on FAAN and the Federal Government to urgently suspend the tariff adjustment and engage stakeholders in meaningful consultations aimed at finding a more balanced approach to revenue generation that does not stifle trade or economic growth.

Air freights may reduce – Expert

An aviation analyst, Capt. Samuel Caulcrick in a chat with our correspondent stated that the proposed increase would affect the volume of air cargoes in Nigeria.

He stated that already agents were complaining over the five per cent cargo sale charge (CSC) imposed on all cargoes and collected by the Nigeria Civil Aviation Authority (NCAA).

Caulcrick, a former Rector of the Nigeria College of Aviation Technology (NCAT), said, “Except some urgent, must go cargoes which are usually parcels but I don’t think it would be profitable for any shipper. The shipper has options, if it is not urgent the shipper can put it on a truck or train or by sea.

“I mean, if it’s going to, say, Europe or something, on a ship. Even if it’s perishable, perishable can still go on the ship when it’s by sea. Because all you have to do is put it in the cold room on the ship.

“So if FAAN will now have to add their own again, they are still charging per liter on the foil. They just want to kill the business. Because, I don’t understand when you are supposed to be thinking about volume, because it is going to reduce the amount of cargoes.”

Meanwhile, the International Air Transport Association (IATA) released data for full year 2025 and December 2025 global air cargo market performance showing full-year demand for 2025, measured in cargo tonne-kilometers (CTK), increased 3.4% compared to 2024 (4.2% for international operations).

Full-year capacity in 2025, measured in available cargo tonne-kilometers (ACTK), increased by 3.7% compared to 2024 (5.1% for international operations).

December 2025 brought the year to a close with continued strong performance. Global demand was 4.3% above December 2024 levels (5.5% for international operations). Global capacity was 4.5% above December 2024 levels (6.4% for international operations).

African airlines saw 6.0% year-on-year demand growth for air cargo in 2025. Capacity increased by 7.8% year-on-year.

December year-on-year demand increased by 10.1%, the highest of all regions, and capacity increased 9.8%.

According to IATA, this was the lowest load factor among regions but a record high for Africa and the strongest load factor increase of any region. December 2025 traffic for African airlines rose 10.3% over December 2024.

“Air cargo delivered a strong performance in 2025, with demand up 3.4% year-on-year. Global e-commerce strength drove volumes, even as trading relationships with the US faced rising tariffs, the removal of de minimis tariff exemptions, and continuing policy uncertainty. Air cargo rose to the occasion. It adapted quickly to support global businesses and supply chains as they front-loaded product deliveries ahead of tariff impositions and adjusted to rising demand within Asia and between Asia and Europe as US-Asia trade stagnated,” said Willie Walsh, IATA’s Director General.

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