Airports tense as FAAN enforces 257% cargo tariff hike

Tension is mounting at major airports across Nigeria as freight forwarders and clearing agents resist the Federal Airports Authority of Nigeria’s implementation of a 257 per cent increase in cargo handling tariffs.

FAAN has raised air cargo charges from N7 per kilogram to N25 per kilogram, a move stakeholders say will sharply increase the cost of doing business and worsen pressure on importers, exporters and consumers.

The development is affecting operations at key cargo hubs, including Murtala Muhammed International Airport, Lagos; Nnamdi Azikiwe International Airport, Abuja; and Port Harcourt International Airport.

FAAN said the tariff adjustment, originally planned for 2025, was postponed until February 2, 2026, to allow the authority fix operational inefficiencies that had led to revenue leakages.

A FAAN official, who spoke anonymously, said implementing the hike earlier would not have yielded meaningful gains due to systemic gaps, adding that recent corrections would ensure improved revenue performance.

The agency also maintained that the review was aimed at enhancing transparency, strengthening air cargo operations and ensuring sustainable growth in the aviation sector.

However, clearing agents have rejected the increase, warning that it could discourage exports, inflate import costs and further weaken the already struggling air cargo market.

They argued that the hike would ultimately be passed on to businesses and consumers and described the new charges as unjustified and outside FAAN’s statutory powers.

President of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria, Otunba Frank Ogunojemite, said the group had outrightly rejected the policy, citing its potential to destabilise the sector.

“This increase comes against the advice and objections of key stakeholders and will significantly escalate the cost of air cargo operations, discourage exports and increase import costs,” he said.

Ogunojemite questioned the rationale for the sharp rise, especially without visible improvements in cargo infrastructure or service delivery.

“We urge FAAN and the federal government to reconsider this policy in the interest of trade facilitation, economic stability and national competitiveness,” he added.

Similarly, Segun Oduntan of the Association of Nigerian Licensed Customs Agents called for broader consultations before implementing such changes, stressing that any increase would ultimately affect all Nigerians.

“We are not opposed to revenue enhancement, but there must be proper engagement and sensitisation,” he said.

Deputy President of the National Association of Government Approved Freight Forwarders, Segun Musa, also warned that the tariff hike could further reduce cargo volumes. He said the association would continue discussions with FAAN to seek a compromise that would not harm the economy.

Musa further alleged intimidation, claiming that the association’s secretariat was threatened with demolition after it opposed the tariff.

“We will explore all lawful means to resolve the issue and ensure the matter is handled amicably,” he said.