The Federal Airports Authority of Nigeria (FAAN) has scored a historic win in its decades-long struggle to reclaim transparency and accountability in air cargo revenue management at the Murtala Muhammed International Airport (MMIA), Lagos. After more than 15 years, the authority has finally resumed direct revenue collection at the nation’s busiest cargo terminals—a breakthrough many industry watchers describe as “long overdue and transformational.”
For years, FAAN’s direct involvement in cargo revenue collection was conspicuously absent. Outsourced arrangements, weak oversight, and systemic loopholes left the process vulnerable to leakages, with significant losses to the federal purse. Industry insiders often lamented how billions of naira in potential revenue slipped through the cracks annually, while FAAN remained a passive observer in its own backyard.
This has now changed. In a statement signed by the Director of Public Affairs and Consumer Protection, Mrs. Obiageli Orah, FAAN confirmed that—for the first time in over a decade—its Directorate of Cargo Development and Services (DCDS) now has officials permanently stationed at the cargo release points of the Nigerian Aviation Handling Company (NAHCO) and Skyway Aviation Handling Company (SAHCO). The move ensures real-time oversight and direct collection of accrued cargo charges, plugging leakages and restoring institutional control.
The road to this milestone was far from smooth. It took months of stakeholder engagement, led by FAAN’s Director of Cargo Development and Services, Mr. Lekan Thomas, and Airport Manager, Mr. Olatokubo Arewa, to navigate competing interests and operational complexities. A decisive turning point came with a high-level meeting between FAAN’s Managing Director/Chief Executive, Mrs. Olubunmi Kuku, and the Comptroller-General of the Nigeria Customs Service, Mr. Bashir Adewale Adeniyi. Their agreement, reinforced by the PTC Customs Area Command under Comptroller T. Awe, sealed the inter-agency collaboration that gave FAAN the green light to reassert its role.
Experts Applaud Move, Call It “Game-Changer”
Industry experts and stakeholders have welcomed the reform, hailing it as a bold step towards restoring efficiency and financial accountability in Nigeria’s aviation sector.
Mr. John Okeke, a freight forwarder at MMIA, described the reform as “a breath of fresh air.” According to him, “For too long, the system was riddled with loopholes that encouraged leakages and slowed down cargo release processes. Having FAAN directly involved will not only boost revenue but also bring order and credibility to the cargo value chain.”
Similarly, a licensed customs broker, Mrs. Funke Adesina, noted that the reform has the potential to streamline operations between cargo handlers and regulators. “This development is not just about FAAN collecting money; it is about accountability across board. Cargo operators and importers want a transparent process where charges are clearly accounted for. It will reduce disputes, foster trust, and ultimately enhance the ease of doing business at the airport,” she said.
Aviation economist, placed the milestone within a broader economic context. Saying “Cargo is a critical revenue driver for airports globally, but in Nigeria, it has remained underdeveloped partly due to inefficiencies in revenue management. FAAN reclaiming its oversight role after 15 years is significant because it boosts investor confidence. When investors see transparency in cargo processes, they are more likely to support logistics and infrastructure expansion. This ties directly into Nigeria’s ambition to be an aviation hub for West and Central Africa.”
How Other Hubs Do It
Nigeria’s reform is not happening in isolation. Across major global aviation hubs, direct oversight of cargo revenue collection is seen as central to efficiency and competitiveness.
- Johannesburg (South Africa): At OR Tambo International Airport, the Airports Company South Africa (ACSA) maintains direct oversight of cargo operations through automated payment systems integrated with customs. This minimizes cash handling, reduces disputes, and ensures every shipment is captured in real time.
- Addis Ababa (Ethiopia): Ethiopian Airlines Cargo—Africa’s largest cargo operator—operates a fully digital cargo terminal where payments, documentation, and customs clearance are integrated into a single platform. The transparency of the system has made Addis Ababa a continental cargo hub.
- Dubai (UAE): Dubai Airports runs one of the most technologically advanced cargo systems in the world, where real-time revenue collection is automated and linked with Emirates SkyCargo. The efficiency of this model is part of what enables Dubai to handle millions of tonnes of cargo annually with minimal bottlenecks.
Aviation analyst, Mr. Segun Ajayi, explained the lesson for Nigeria: “The trend globally is automation, integration, and transparency. FAAN’s resumption of direct revenue collection is the first step, but the next step must be digital. Lagos can learn from Johannesburg, Addis Ababa, and Dubai by adopting technology that removes human discretion and guarantees accountability.”
Reflection on Lost Years
Looking back, the absence of direct FAAN oversight in cargo revenue collection had been a sore point for both regulators and industry observers. Critics argued that it weakened FAAN’s financial base and undermined Nigeria’s position as a regional aviation hub. With this jinx finally broken, FAAN’s renewed assertiveness sends a clear message: accountability and efficiency are back at the heart of cargo operations.
For freight forwarders who had endured years of opaque practices, the shift is symbolic of a new dawn. For regulators, it demonstrates the power of collaboration—between FAAN, Customs, and handling companies—in achieving reforms once considered impossible.
The Road Ahead
While the breakthrough has been widely applauded, experts caution that sustaining it will require consistency and vigilance. “The real test is not in the launch but in implementation,” said aviation policy analyst, Mr. Ajayi. “FAAN must invest in digital systems, staff training, and inter-agency coordination to ensure that this reform is not reversed or compromised in the future.”
The optimism is high. As cargo operations expand in scale and complexity, stakeholders are confident that this decisive move will not only increase FAAN’s internally generated revenue but also instill confidence among investors, operators, and global trading partners.
The breakthrough at Lagos may well be the model for other airports nationwide—ushering in a new era where Nigeria’s aviation sector is no longer haunted by the ghosts of lost revenues but driven by the promise of transparency, efficiency, and sustainable growth.
@2025 The Ameh News: All Rights Reserved
Discover more from Ameh News
Subscribe to get the latest posts sent to your email.
