Lagos air cargo operators are divided over the recent N20 per kilogram cargo tariff announced by the Federal Airports Authority of Nigeria (FAAN).
Nairametrics gathered that some operators see the adjustment as necessary to fund infrastructure improvements and enhance operational efficiency, while others argue the increase is too steep and are calling for a compromise.
Some operators highlighted long-standing inefficiencies at the terminals, including congestion and delays, and questioned whether the new tariff alone could resolve these challenges.
The divide has sparked discussions and even industrial action at the Murtala Muhammed International Airport (MMIA) cargo terminals, just days after the tariff was implemented.
What they are saying
Industry reactions at MMIA show a mix of cautious support and strong resistance.
Faisal Jarmakani, Managing Director, Aramex Nigeria, supported the adjustment, noting that if the additional revenue translated into real improvements, the long-term impact on operators and customers could be manageable.
- “When compared with neighbouring countries such as Ghana, our fees will remain lower even after the increase. If the additional revenue is used to deliver meaningful improvements, the impact on customers should be manageable and ultimately beneficial for all parties,” he told Nairametrics.
Other operators who spoke on condition of anonymity highlighted persistent inefficiencies, including insufficient staff and delayed shipment processing:
- “Even before this increase, inefficiencies like congestion and limited staffing slowed operations. The new tariff alone won’t fix these issues if the fundamentals don’t improve,” one operator said.
Peace Azagba, a registered agent with Mayckles Cargo Logistics at MMIA, said the review could help enforce proper registration of agents:
“This review could help weed out unregistered agents who aren’t supposed to be at the terminals in the first place,” he told Nairametrics.
Industrial action disrupts air cargo imports
Just days after FAAN announced the N20 cargo tariff review on Friday, January 30, some operators at MMIA began an industrial action affecting the importation warehouse. Inbound shipments remain locked and unreleased.
Operators explained to Nairametrics that several of their imports had already been billed under the previous N7 rate, and the sudden increase to N20 caught them off guard, prompting the protest. Talks are ongoing to allow normal operations to resume.
Operators outline potential benefits of the tariff increase
Jarmakani said the tariff could support infrastructure upgrades at MMIA, including improvements to road access, scanning equipment, safety measures, and enhanced security.
“There is currently significant work underway at the cargo terminal for both inbound and outbound operations. These upgrades should improve operational efficiency, reliability, and overall airport connectivity,” he said.
He highlighted plans to separate export and inbound processing, moving export operations to a secure facility adjacent to the existing terminal while the current terminal focuses on inbound processing for faster turnaround times.
- “Together, these changes could significantly increase space and enable Nigeria to further position itself as a regional transit hub,” he told Nairametrics.
Jarmakani also emphasized the Truck Call-Up System, which would require proper registration of trucks and reduce congestion at the terminals:
- “Under the current setup, trucks often remain parked while waiting for assignments, and many are not properly registered. Implementing the Truck Call-Up System will improve security, traceability, and access control,” he added.
Other operators who support the review echoed that, if revenue is reinvested in infrastructure, terminals could see improved handling times and space management.
- “We should see better space management and faster handling times at the terminals if the additional revenue is properly applied,” an anonymous operator said.
Impact on customers and shipment costs
Operators also weighed in on how the N20 tariff could affect customers. Jarmakani noted that even though the tariff has nearly tripled from N7, the increase remains modest when broken down by shipment weight:
- “A 2-ton shipment would now cost N40,000 (around $28), a 200kg shipment N4,000 (around $2.8), and a 20kg shipment N400 (around $0.28). The increase is modest when viewed against the potential efficiency gains,” he said.
Peace Azagba echoed this view but noted that the increase would need to be passed down to customers:
“Operators will have to reflect the new charges in billing, but if handled well, the cost per shipment is reasonable considering the potential improvements in handling and terminal operations,” he told Nairametrics.
Some operators raised concerns about shipments already billed at the old N7 rate:
“Several of my shipments were already billed to clients based on N7. This sudden increase has put us at a loss, which is why there’s pushback at the terminals,” one operator explained.
Backstory
FAAN increased cargo port charges to N20 per kilogram on Friday, January 30, the first revision since 2008. The adjustment, applied to FAAN-controlled airports across the country, was driven by inflation, exchange rate pressures, and the need to fund cargo infrastructure.
According to FAAN, the previous N7 rate had become unsustainable after roughly 287% cumulative inflation and the naira’s depreciation from N118/$1 to about N1,500/$1.
The new N20 tariff remains below the inflation-adjusted benchmark to ease the burden on operators and covers shared airport infrastructure, separate from private concessionaire fees.
FAAN said the revenue will fund upgrades such as apron and road rehabilitation, enhanced security, airfield lighting, and digital systems like the Cargo Community System and Truck Call-Up System, aiming to build a more efficient and future-ready air cargo ecosystem.
FAAN’s implementation plans and accountability measures
FAAN provided detailed insights into how the revised N20 cargo tariff would be used to improve operations at MMIA and other airports, in an exclusive interview with Nairametrics.
The authority confirmed that key initiatives, including the Cargo Community System (CCS) and Truck Call-Up System, would be rolled out in phases, with Lagos as the primary pilot airport and Abuja as secondary.
- “The Cargo Community System pilot should go live at Lagos Airport within 12 months, and the Truck Call-Up System should be operational within nine months. A nationwide rollout will only begin after successful validation of these pilots,” FAAN told Nairametrics.
Operators are expected to see tangible improvements within the first 6–12 months, including a minimum 30% reduction in average truck turnaround time at pilot airports and the launch of initial CCS modules. Significant efficiency gains, such as a 50% or more reduction in cargo dwell time, are expected within three years.
FAAN also provided key performance indicators (KPIs) to track progress:
- Cargo Dwell Time: ≤ 48 hours for exports and ≤ 72 hours for imports within three years
- Truck Turnaround: Consistent ≤ 2-hour average from gate-in to gate-out
- Revenue Reinvestment: At least 70% of incremental cargo tariff revenue reinvested in cargo infrastructure and systems
- System Uptime: 99% operational availability for CCS and Truck Call-Up platforms
Accountability measures include a Cargo Tariff Oversight Committee with veto-capable stakeholder representation, bi-annual public performance reports, and contractual remedies such as tariff freezes or stakeholder rebates if KPIs are missed for two consecutive periods.
What you should know
Nigeria’s air freight market, valued at over $8 billion, is concentrated in Lagos, Abuja, Port Harcourt, and Kano, with Lagos handling the largest volumes.
- According to Jarmakani, e-commerce, SME trade, and diaspora-linked shipments are driving growth, particularly on routes from China, the US, and the UK, during an exclusive interview with Nairametrics.
- Key challenges include airport processing inefficiencies, fragmented last-mile delivery, and high costs compared with regional hubs. Bottlenecks often occur after cargo lands, at warehouses, and during final delivery.
- He proposed deeper digitization, better coordination among agencies, technology-driven address verification, and investment in warehousing and fulfilment centres. These measures aim to reduce turnaround times, lower costs, and improve overall service reliability.
With the right infrastructure upgrades and technology adoption, Nigeria’s air cargo sector is positioned for steady growth, supporting both imports and expanding export potential.
