Airports On Edge As FAAN Enforces 257% Cargo Tariff Increase Amid Agents’ Showdown

Tension is brewing at some airports across the country as clearing agents brace for a possible showdown with the Federal Airports Authority of Nigeria (FAAN) over its implementation of a 257 per cent increase in cargo tariff charges.

LEADERSHIP reports that FAAN, which previously charged N7 per kilogram for air cargo handling, has reviewed the tariff upward to N25 per kilogram, a move that has triggered widespread resistance among stakeholders, especially freight forwarders and clearing agents.

The airports where cargoes are being processed for exports and receive imports are Murtala Muhammed Airport (Lagos), Nnamdi Azikiwe International Airport (Abuja), and Port Harcourt Airport.

FAAN, however, explained that the tariff adjustment, initially scheduled for 2025, was deliberately deferred to February 2, 2026, to allow time to address systemic inefficiencies within its operations.

According to the Authority, implementing the increase earlier would not have yielded meaningful revenue, as significant earnings were being lost through operational leakages.

“Implementing the tariff adjustment earlier would not have delivered meaningful revenue gains, as a significant portion of earnings would have continued to be lost through operational gaps,” a FAAN official, who spoke on condition of anonymity, told LEADERSHIP.

“With the operational corrections now firmly in place, the Authority is confident that the tariff adjustment will translate directly into improved revenue performance,” the official added.

FAAN further reaffirmed its commitment to transparency, efficiency, and collaboration with industry stakeholders, noting that the review was aimed at strengthening Nigeria’s air cargo operations and ensuring sustainable growth across the aviation sector.

However, clearing agents have rejected the increment, warning that it would significantly escalate the cost of air cargo operations, discourage exports, increase import costs, and place additional pressure on Nigerian businesses and consumers.

They cautioned that the tariff hike could further weaken an already fragile air cargo market, which they said is currently experiencing a decline in cargo volumes.

The agents also described the increment as illegal, saying the collection wasn’t in the FAAN act, asking the authority to justify the increment of the tariff charges.

Speaking to LEADERSHIP, on the increment, President of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), Otunba Frank Ogunojemite, said the association had outrightly rejected the planned tariff increase.

According to him, the decision was based on concerns that the policy would destabilise the air cargo sector and worsen the cost of doing business in the country.

Ogunojemite expressed concern that FAAN was raising cargo charges from N7 to N25 per kilogram despite receiving government subventions and having access to other revenue streams.

“This increase comes against the advice and objections of key industry stakeholders and will significantly escalate the cost of air cargo operations, discourage exports, increase import costs, and ultimately place additional pressure on Nigerian businesses and consumers,” he said.

He also questioned the justification for what he described as a steep and poorly timed adjustment, especially in the absence of visible improvements in cargo infrastructure and service delivery at the airports.

“We question the rationale behind this sharp increment, particularly when there have been no corresponding upgrades in cargo infrastructure or service quality, and at a time when government policy is focused on reducing the cost of doing business in Nigeria.

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

Also reacting, a clearing agent with the Association of Nigerian Licensed Customs Agents (ANLCA), Segun Oduntan, called for proper stakeholder engagement before implementing any tariff increase.

While noting that ANLCA is not opposed to revenue enhancement, Oduntan stressed the need for adequate consultation and sensitisation.

“We are only asking for proper enlightenment before commencement. The increment will not affect ANLCA alone; it will be borne by importers and, ultimately, all Nigerians. FAAN should learn from the experience of the Shippers’ Council,” he said.

Similarly, the deputy president of the National Association of Government Approved Freight Forwarders (NAGAFF), Segun Musa, warned that the tariff hike would further weaken the already fragile cargo market.

Musa said the association would pursue all lawful means to engage FAAN, adding that discussions were already scheduled.

“We will be meeting with them tomorrow to seek a synergy that will not have a negative impact on the economy. Continuous increases will only worsen the situation. There is already a decline in cargo volumes, and this is why we are appealing for a reconsideration,” he said.

He also alleged intimidation by FAAN, claiming that NAGAFF had been threatened with the demolition of its secretariat for opposing the tariff hike.

“They have threatened to demolish our secretariat. We believe this is because we opposed the planned tariff. We will explore all legal avenues and continue engagement to ensure the matter is resolved amicably,” Musa added.