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Demurrage, Congestion Mount As Tariff Increase Sparks Nationwide Air Cargo Disruption

Yusuf Babalola by Yusuf Babalola
6 months ago
in Business
aviation
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Importers are incurring huge demurrage charges, while congestion is building up at the import and export sheds of Skyway Aviation Handling Company (SAHCo) Limited and Nigerian Aviation Handling Company (NAHCo) Limited, following the shutdown of operations by clearing agents at the Murtala Muhammed Airport (MMA), Lagos.

The shutdown, which has trapped thousands of cargoes across several airports, is in protest against the recent increase in air cargo handling tariffs by the Federal Airports Authority of Nigeria (FAAN).

LEADERSHIP reports that FAAN, on Monday, February 2, 2026, raised air cargo handling charges from between N7 and N20 per kilogram. The decision has met stiff resistance from clearing agents and importers, leading to a strike action that has effectively paralysed cargo clearance operations.

Apart from Murtala Muhammed Airport in Lagos, other affected airports include Nnamdi Azikiwe International Airport in Abuja and Port Harcourt International Airport.

Confirming the development, a senior official of the Nigeria Customs Service (NCS) told LEADERSHIP that no cargo releases have been made since Monday, February 2, 2026.

According to the officer, who requested anonymity, clearing agents embarked on the protest in response to the tariff hike, which has stalled cargo clearance.

“Revenue will still be paid whenever they call off the protest, but something urgently needs to be done. Cargoes are not being released and the sheds are getting filled up,” the officer said.

Speaking on the issue, the President of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), Otunba Frank Ogunojemite, said none of the association’s members has paid the revised charges.

Ogunojemite explained that the agents rejected the increment because FAAN failed to provide justification or engage stakeholders before enforcing the new tariff.

“None of our members has paid the new charge. We are expecting an official invitation for dialogue because this issue is about justification, ease of doing business, and trade facilitation,” he said.

He noted that the revised tariff had been proposed last year but was rejected by industry stakeholders, adding that FAAN went ahead to enforce the increment without consultation.

“They forcibly attempted to implement the increment, and we said no. Stakeholders must be engaged before any increase. We represent the citizens and understand where the shoe pinches,” Ogunojemite said.

He further argued that the tariff hike contradicts the Federal Government’s policy to reduce port-related costs by 35 per cent, stressing that FAAN, with its subventions and multiple revenue streams, has no justification for increasing cargo charges.

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Ogunojemite also alleged that FAAN had threatened clearing agents with eviction notices from their operational spaces, but said the association remained undeterred.

“This increment goes against government policy, will escalate air cargo costs, discourage exports, increase import expenses, and place additional pressure on businesses and consumers,” he added.

APFFLON therefore called on FAAN and the Federal Government to urgently suspend and review the tariff increase in the interest of trade facilitation, economic stability, and national competitiveness.

Similarly, the Vice President (Air and Logistics) of the National Association of Government Approved Freight Forwarders (NAGAFF), Dr Segun Musa, said FAAN had yet to engage clearing agents over the increment.

Musa, in an exclusive interview with LEADERSHIP, said the association was open to negotiations within the legal framework, warning that implementation of the tariff hike would negatively affect cargo throughput at the nation’s airports.

“We are not asking for a reversal but negotiations in line with the legal framework. Unfortunately, FAAN has not given us an audience, but we are hopeful this will happen soon,” he said.

Regarding demurrage concerns, Musa disclosed that discussions were ongoing with NAHCo and SAHCo to explore waiving charges.

“The demurrage affects them directly and indirectly. If cargo volumes drop, it will impact their operations as well,” he added.

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Yusuf Babalola

Yusuf Babalola

Yusuf Babalola is a Senior Correspondent with Leadership Newspaper, specialising in maritime, aviation, transport, and economic reporting in Nigeria. He is recognised for well-researched stories that illuminate policy developments, industry challenges, and stakeholder perspectives across Nigeria's logistics, shipping, and aviation sectors. His reporting is noted for its clarity, balance, and commitment to professional journalistic standards.

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