The Federal Airports Authority of Nigeria (FAAN) has elevated cargo port costs to N20, marking the primary upward evaluation of the tariff in practically twenty years.
BusinessTimes obtained this completely from FAAN on Friday, January 30.
In response to FAAN, the adjustment, efficient instantly, was pushed by inflation, overseas alternate pressures, and cargo infrastructure funding wants.
What FAAN is saying
FAAN mentioned the cargo tariff had remained unchanged since 2008, regardless of main shifts in Nigeria’s financial situations over the previous 18 years.
In response to the authority, cumulative inflation in the course of the interval stood at about 287%, making the previous N7 cost financially unsustainable.
The company defined that primarily based on Nationwide Bureau of Statistics (NBS) information, a service priced at N7 in 2008 ought to price roughly N27.09 at present to retain the identical worth.
FAAN famous that the brand new N20 tariff was intentionally set under this inflation-adjusted benchmark to keep away from passing the complete price burden to cargo operators.
“FAAN has elevated tariffs after cautious consideration of present financial realities. Our tariffs have remained static since 2008. Over the previous 18 years, Nigeria has skilled vital inflation (roughly 287%) and a drastic depreciation of the Naira. This adjustment is important to maintain and improve essential airport infrastructure, which has turn into financially unsustainable below the outdated charges,” the authority revealed.
FAAN additionally cited overseas alternate pressures as a key issue behind the evaluation. In 2008, the naira exchanged at about N118 to the greenback, in contrast with roughly N1,500/$1 at present.
Since important airport infrastructure parts—reminiscent of runway asphalt, aerodrome lighting, and hearth truck elements—are imported, the authority mentioned working and upkeep prices had elevated by over 1,000% in naira phrases.
- Addressing considerations about double taxation, FAAN clarified that its cargo port cost was distinct from charges charged by concessionaires.
The FAAN cost coated shared airport infrastructure, together with runways, taxiways, perimeter fencing, safety, entry roads, and airfield lighting, whereas concessionaire charges utilized to cargo dealing with, storage, and documentation providers supplied inside non-public warehouse terminals.
Tariff influence and infrastructure plans
FAAN mentioned that even with the revised tariff, Nigeria’s cargo costs would stay aggressive inside West Africa.
Previous to the evaluation, the authority famous that costs at Nigerian airports have been decrease than these at main regional hubs reminiscent of Kotoka Worldwide Airport in Ghana and Cotonou Airport in Benin.
- The authority added that the adjustment aligned Nigeria’s costs nearer to regional requirements whereas preserving the nation’s attractiveness to air cargo operators and traders.
- FAAN downplayed the potential influence on client costs, stating that the cargo port cost accounted for less than a small portion of complete air freight prices.
- In response to the authority, improved infrastructure may cut back delays, enhance turnaround instances, and improve effectivity throughout the cargo worth chain.
- The authority mentioned income from the revised tariff can be reinvested in cargo-related infrastructure. Deliberate initiatives embrace the rehabilitation of aprons and entry roads, enhanced perimeter safety, and upgrades to airfield lighting.
FAAN additionally plans to deploy a Cargo Neighborhood System for digital documentation, set up a truck call-up system on the Premier Cargo Terminal, and develop home cargo infrastructure.
FAAN added that cargo operators and different business stakeholders had been formally knowledgeable of the evaluation.
The authority mentioned consultations have been ongoing, describing the tariff adjustment as a strategic funding geared toward constructing a resilient, environment friendly, and future-ready air cargo ecosystem in Nigeria.
Why this issues
Cargo port costs are charges airports accumulate to take care of and function shared infrastructure used for air cargo, reminiscent of runways, taxiways, perimeter fencing, safety, entry roads, and airfield lighting.
- They’re separate from charges paid to personal cargo dealing with corporations, which cowl storage, documentation, and warehouse providers.
- The rise to N20 implies that FAAN will increase extra income per ton of cargo dealt with, which may have an effect on general cargo prices and, not directly, air freight costs.
Coming 18 years after the final evaluation, this adjustment displays long-delayed alignment with inflation and overseas alternate pressures and should affect how aggressive Nigerian airports stay in West Africa.
What it’s best to know
Nigeria’s aviation sector noticed one other levy enhance on December 1, 2025, when the Nigerian Civil Aviation Authority (NCAA) added an $11.5 safety price below the Advance Passenger Info System (APIS). This raised the full safety levy on every ticket to $31.50.
- The APIS levy applies on the level of sale for each ticket, masking all passengers arriving in or departing from Nigeria. Airways remit the price to the NCAA. The system tracks passenger actions, enhances border management, and permits airways to get well prices for sustaining APIS.
- Carried out with the Nigeria Immigration Service (NIS), it additionally streamlines passenger clearance.
- In 2024, Nigeria generated $62 million from airline ticket taxes, a part of a broader $1.97 billion collected throughout Africa, contributing to a $60.3 billion international ticket-tax income.
Different notable African contributors included South Africa ($410 million), Egypt ($360 million), Ethiopia ($310 million), Morocco ($295 million), and Kenya ($215 million).
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