FAAN Begins Implementation Of New Cargo Tariff
A new aviation cargo pricing regime begins today as the Federal Airports Authority of Nigeria (FAAN) implemented its first cargo port charge increase in 18 years, raising tariffs from N7 to N20 per kilogram.
The price adjustment, which according to FAAN, is due to the 287 per cent cumulative inflation since 2008 and rising foreign exchange pressures, has ignited strong resistance from freight forwarders who warn of higher business costs and reduced cargo volumes.
FAAN said the tariff review, long delayed, reflects economic realities that have made airport operations increasingly unsustainable under outdated charges. According to the authority, data from the National Bureau of Statistics shows that a service priced at N7 in 2008 would cost about N27.09 today to retain the same purchasing power. By setting the new tariff at N20 per kilogram, FAAN said it deliberately opted for a level below full inflation adjustment to balance cost recovery with industry sustainability.
“FAAN has increased tariffs after careful consideration of current economic realities. Our tariffs have remained static since 2008,” the authority said. “Over the past 18 years, Nigeria has experienced significant inflation and a drastic depreciation of the naira. This adjustment is essential to sustain and upgrade critical airport infrastructure, which has become financially unsustainable under the old rates.”
FAAN noted that foreign exchange volatility has further strained operations. In 2008, the naira exchanged at about N118 to the dollar, compared with roughly N1,500 today. It said the impact has been severe because most critical airport infrastructure such as runway asphalt, aerodrome lighting systems and fire truck components are imported, pushing operating and maintenance costs up by more than 1,000 per cent in naira terms.
FAAN said the decision to proceed with the tariff increase followed the stabilisation of cargo operations and the closure of major revenue leakages, particularly at Lagos and Abuja airports. An operational report by the authority showed that while cargo throughput declined in 2025 compared to 2024, revenue performance improved due to higher collection efficiency driven by targeted reforms.
One of the most significant changes was the relocation of FAAN operational personnel and revenue-collection desks back into cargo warehouses operated by the Nigerian Aviation Handling Company (NAHCO) Plc and Skyway Aviation Handling Company (SAHCO). FAAN said the move addressed long-standing oversight lapses that allowed revenue to escape official systems.
A senior FAAN official who spoke on the condition of anonymity explained that reform had to come before pricing. “Before now, even if we increased tariffs, a large portion of the revenue would still have been lost due to operational gaps. The reforms were necessary to ensure that whatever revenue is due to FAAN is fully captured,” he said.
The authority is also rolling out a courier revenue optimisation framework, which will replace the existing aggregate billing structure with a per-kilogram charging model for courier operators. FAAN said the current system has been exploited in ways that limit revenue collection, adding that the new model would improve fairness and transparency.
Despite FAAN’s explanations, freight forwarding groups have pushed back strongly.
The Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) described the tariff increase as excessive and poorly timed, questioning its justification in the absence of visible improvements in cargo infrastructure.
In a statement signed by its President, Otunba Frank Ogunojemite, APFFLON said: “This increase comes against the advice and objections of key industry stakeholders and will worsen the already high cost of doing business in Nigeria. It will undermine efforts to promote non-oil exports and make Nigerian goods less competitive in the international market.”
The association called on FAAN and the Federal Government to suspend the adjustment and reopen consultations to find a more balanced approach to revenue generation that does not stifle trade.
Aviation analyst and former Rector of the Nigeria College of Aviation Technology, Capt. Samuel Caulcrick, cautioned that higher charges could push shippers away from air transport. “Except some urgent, must-go cargoes which are usually parcels, 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. So if FAAN will now have to add their own again, they are just going to kill the business,” he said.
FAAN, however, maintained that Nigeria’s cargo charges remain competitive within the sub-region, noting that rates at Nigerian airports had previously been lower than those at hubs such as Kotoka International Airport in Ghana and Cotonou Airport in Benin Republic.
The tariff hike comes at a time of strong growth in Africa’s air cargo market. International Air Transport Association (IATA) data shows that African airlines recorded 6.0 per cent year-on-year air cargo demand growth in 2025, with December demand rising by 10.1 per cent—the highest of any global region. “Air cargo delivered a strong performance in 2025, with demand up 3.4 per cent year-on-year,” IATA Director General Willie Walsh said.
FAAN clarified that the cargo port charge is separate from fees charged by concessionaires for handling, storage and documentation within private terminals. The authority said its charge covers shared airport infrastructure, including runways, taxiways, perimeter fencing, security, access roads and airfield lighting.
The authority added that most Nigerian airports require urgent upgrades in terminal facilities, runways, taxiways, aprons, baggage handling systems, power supply and perimeter security—projects requiring billions of naira. “Without adjusting charges to reflect realistic cost-recovery models, FAAN cannot maintain critical infrastructure, improve airport safety, support airline growth, expand capacity for cargo and passenger traffic, and compete with regional airports like Accra, Kigali, Addis Ababa and Johannesburg,” it said.
FAAN also disclosed that it has been excluded from the 2026 Federal Budget, reinforcing its status as a self-sustaining agency. The authority said revenue from the revised tariff would support critical projects and its “Operation Go-Cashless” initiative aimed at deploying automated, contactless payment systems across airport terminals.
Downplaying fears of inflationary impact, FAAN said the cargo port charge represents only a small fraction of total air freight costs and argued that improved infrastructure could reduce delays, enhance turnaround times and improve efficiency across the cargo value chain.
As implementation begins, FAAN said it remains committed to reinvesting proceeds from the revised tariff into cargo infrastructure and maintaining engagement with stakeholders to ensure transparency and accountability as the reform process unfolds.
