The Federal Airports Authority of Nigeria (FAAN) has increased cargo port charges to N20, marking the first upward review of the tariff in nearly two decades.
Nairametrics obtained this exclusively from FAAN on Friday, January 30.
According to FAAN, the adjustment, effective immediately, was driven by inflation, foreign exchange pressures, and cargo infrastructure funding needs.
What FAAN is saying
FAAN said the cargo tariff had remained unchanged since 2008, despite major shifts in Nigeria’s economic conditions over the past 18 years.
According to the authority, cumulative inflation during the period stood at about 287%, making the former N7 charge financially unsustainable.
The agency explained that based on National Bureau of Statistics (NBS) data, a service priced at N7 in 2008 should cost approximately N27.09 today to retain the same value.
FAAN noted that the new N20 tariff was deliberately set below this inflation-adjusted benchmark to avoid passing the full cost burden to cargo operators.
“FAAN has increased tariffs after careful consideration of current economic realities. Our tariffs have remained static since 2008. Over the past 18 years, Nigeria has experienced significant inflation (approximately 287%) 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,” the authority revealed.
FAAN also cited foreign exchange pressures as a key factor behind the review. In 2008, the naira exchanged at about N118 to the dollar, compared with roughly N1,500/$1 today.
Since essential airport infrastructure components—such as runway asphalt, aerodrome lighting, and fire truck parts—are imported, the authority said operating and maintenance costs had increased by over 1,000% in naira terms.
- Addressing concerns about double taxation, FAAN clarified that its cargo port charge was distinct from fees charged by concessionaires.
The FAAN charge covered shared airport infrastructure, including runways, taxiways, perimeter fencing, security, access roads, and airfield lighting, while concessionaire fees applied to cargo handling, storage, and documentation services provided within private warehouse terminals.
Tariff impact and infrastructure plans
FAAN said that even with the revised tariff, Nigeria’s cargo charges would remain competitive within West Africa.
Prior to the review, the authority noted that charges at Nigerian airports were lower than those at major regional hubs such as Kotoka International Airport in Ghana and Cotonou Airport in Benin.
- The authority added that the adjustment aligned Nigeria’s charges closer to regional standards while preserving the country’s attractiveness to air cargo operators and investors.
- FAAN downplayed the potential impact on consumer prices, stating that the cargo port charge accounted for only a small portion of total air freight costs.
- According to the authority, improved infrastructure could reduce delays, improve turnaround times, and enhance efficiency across the cargo value chain.
- The authority said revenue from the revised tariff would be reinvested in cargo-related infrastructure. Planned projects include the rehabilitation of aprons and access roads, enhanced perimeter security, and upgrades to airfield lighting.
FAAN also plans to deploy a Cargo Community System for digital documentation, install a truck call-up system at the Premier Cargo Terminal, and develop domestic cargo infrastructure.
FAAN added that cargo operators and other industry stakeholders had been formally informed of the review.
The authority said consultations were ongoing, describing the tariff adjustment as a strategic investment aimed at building a resilient, efficient, and future-ready air cargo ecosystem in Nigeria.
Why this matters
Cargo port charges are fees airports collect to maintain and operate shared infrastructure used for air cargo, such as runways, taxiways, perimeter fencing, security, access roads, and airfield lighting.
- They are separate from fees paid to private cargo handling companies, which cover storage, documentation, and warehouse services.
- The increase to N20 means that FAAN will raise more revenue per ton of cargo handled, which could affect overall cargo costs and, indirectly, air freight prices.
Coming 18 years after the last review, this adjustment reflects long-delayed alignment with inflation and foreign exchange pressures and may influence how competitive Nigerian airports remain in West Africa.
What you should know
Nigeria’s aviation sector saw another levy increase on December 1, 2025, when the Nigerian Civil Aviation Authority (NCAA) added an $11.5 security fee under the Advance Passenger Information System (APIS). This raised the total security levy on each ticket to $31.50.
- The APIS levy applies at the point of sale for every ticket, covering all passengers arriving in or departing from Nigeria. Airlines remit the fee to the NCAA. The system tracks passenger movements, enhances border control, and allows airlines to recover costs for maintaining APIS.
- Implemented with the Nigeria Immigration Service (NIS), it also streamlines passenger clearance.
- In 2024, Nigeria generated $62 million from airline ticket taxes, part of a broader $1.97 billion collected across Africa, contributing to a $60.3 billion global ticket-tax revenue.
Other notable African contributors included South Africa ($410 million), Egypt ($360 million), Ethiopia ($310 million), Morocco ($295 million), and Kenya ($215 million).
