FAAN records higher revenue and improved efficiency in cargo operations despite lower cargo throughput, driven by sweeping operational reforms, digital integration, and stronger revenue assurance measures across Nigerian airports.
The Federal Airports Authority of Nigeria (FAAN) has reported a strong rise in revenue generation and operational efficiency within its cargo operations, even as overall cargo throughput declined year-on-year. The performance improvement follows a series of targeted reforms introduced by the Authority’s Cargo Development and Services Directorate.
According to an operational performance report released by FAAN, the restructuring of legacy cargo procedures has begun delivering tangible results, particularly in revenue assurance, compliance monitoring, and transparency across major airport cargo terminals.
A cornerstone of the reform initiative is the redeployment of FAAN operational staff and revenue-collection units directly into cargo warehouses. This strategic shift has significantly curtailed revenue leakages that previously hampered financial performance. Enhanced tracking of unaccompanied luggage and stricter warehouse supervision have further strengthened financial controls within the cargo ecosystem.
The report identified the cargo warehouses operated by the Nigerian Aviation Handling Company (NAHCO) Plc and Skyway Aviation Handling Company (SAHCO) as key locations where the reforms are already yielding measurable gains in compliance and collection efficiency.
Despite a noticeable reduction in cargo volumes handled in 2025 when compared with 2024 figures, FAAN recorded higher overall revenue inflows during the same period. Aviation analysts within the Authority attribute this outcome to improved billing accuracy, tighter operational controls, and the elimination of systemic leakages.
A senior FAAN official disclosed that additional initiatives are currently being rolled out to consolidate the gains and further reinforce revenue protection across the cargo value chain. Among the planned measures is the introduction of a courier revenue optimisation framework that will adopt a per-kilogram charging structure for courier operators, replacing the existing model based on aggregate shipment weight. The revised system is expected to close pricing loopholes and enhance revenue fairness and accountability.
FAAN is also deepening collaboration across passenger terminals by engaging airlines, ground handling firms, licensed customs agents, and the Nigeria Customs Service (NCS) to address revenue gaps linked to frequent-flyer baggage protocols and related operational inconsistencies.
In parallel, the Authority has intensified access-control measures across airport terminals, delivering improved accountability and security for stakeholders. Infrastructure rehabilitation at the General Aviation Terminal (GAT) in Lagos and the development of a structured cargo expansion roadmap for the Nnamdi Azikiwe International Airport in Abuja are also progressing as part of FAAN’s broader modernization strategy.
On the digital front, FAAN is leading efforts to integrate the National Single Window (NSW) platform into cargo operations, working closely with the implementation team to accelerate deployment. The digital integration is expected to streamline cargo documentation, reduce procedural bottlenecks, and significantly enhance revenue tracking capabilities.
Regulatory alignment remains another focal point, with FAAN sustaining active engagement with the Nigeria Civil Aviation Authority (NCAA) and the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) to ensure cargo stakeholders operate in line with global aviation standards and best practices.
Following the stabilization of operational processes and the successful closure of major financial leakages, FAAN confirmed it is now prepared to implement its previously approved tariff adjustment effective 2 February 2026. The adjustment, originally planned for 2025, was postponed to allow for systemic corrections that would guarantee optimal revenue impact.
Officials noted that implementing the tariff increase earlier would have produced limited financial benefits due to persistent operational inefficiencies. With corrective measures now firmly established, the Authority expressed confidence that the revised tariffs will translate directly into stronger and more sustainable revenue growth.
FAAN reaffirmed its commitment to transparency, continuous improvement, and industry collaboration as it strengthens Nigeria’s air-cargo sector and positions the aviation industry for long-term sustainability. The Authority added that the progress achieved reflects the strategic vision behind the creation of the Cargo Development and Services Directorate by the Honourable Minister, supported by proactive leadership from FAAN’s Managing Director.
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