Nigeria’s Cargo Industry Groans Under Multiple Charges

By The Ameh News
A growing controversy is brewing within Nigeria’s aviation industry as stakeholders question the rationale behind fresh cargo charges imposed by the Federal Airports Authority of Nigeria (FAAN), despite the agency already commanding the largest revenue base in the nation’s aviation value chain.
The debate intensified following FAAN’s decision to increase cargo port charges from ₦7 per kilogram to ₦20 per kilogram and resume direct revenue collection within cargo terminals operated by private handling firms, a move freight forwarders and industry operators describe as an additional burden on an already heavily taxed logistics ecosystem.
Industry figures reveal that FAAN generated approximately ₦358.2 billion in revenue across Nigerian airports in 2024, making it by far the largest earner in the aviation sector. Lagos airport alone reportedly contributed about ₦256 billion, representing nearly 67 per cent of the authority’s total revenue.
At the same time, Nigeria’s leading cargo handlers continue to post strong financial performances. Nigerian Aviation Handling Company (NAHCO) recorded ₦65.21 billion in revenue and ₦18 billion profit after tax in its latest financial year, while Skyway Aviation Handling Company (SAHCO) posted approximately ₦44 billion revenue and ₦12 billion profit.
The figures have sparked renewed scrutiny over whether FAAN’s latest cargo-related charges amount to regulatory necessity or revenue maximisation.
A Cargo Industry Taxed at Every Layer
The Nigerian air cargo sector operates through multiple stakeholders, including airport authorities, airlines, cargo handlers, customs agencies, freight forwarders, and importers.
Critics argue that nearly every participant in the chain now imposes charges, creating cumulative costs that ultimately find their way into the prices paid by businesses and consumers.
Under the current structure, FAAN earns revenue from aircraft landing fees, parking charges, terminal charges, concession fees, rents, and various airport service levies.
The authority has now added a significantly higher cargo port charge and resumed physical revenue collection inside cargo warehouses managed by NAHCO and SAHCO after a 15-year absence.
Freight forwarding associations, including APFFLON and NAGAFF, have openly questioned whether the charges represent a duplication of costs already embedded within existing airport concession arrangements.
Cargo Costs Could Fuel Inflation
Responding to questions from The Ameh News, economist Celestine Ukpong warned that increasing charges across the cargo value chain could have wider implications for inflation and trade competitiveness.
According to him, Nigeria’s ambition to become a regional logistics and export hub under the African Continental Free Trade Area (AfCFTA) could be undermined if regulators continue to increase operational costs without corresponding improvements in efficiency and infrastructure.
“Cargo transportation is a strategic component of modern trade. When costs are repeatedly added at multiple points, those costs eventually flow through the economy and become part of the final price consumers pay,” Ukpong said.
“The concern being raised by freight forwarders is understandable. FAAN is already generating substantial revenue from airport infrastructure and concession arrangements. The question stakeholders are asking is whether these new cargo charges are designed primarily for infrastructure development or simply to expand revenue collections.”
He noted that while airport authorities require adequate funding to maintain facilities, excessive levies risk making Nigerian airports less competitive than regional rivals.
“If Nigeria wants to attract more cargo traffic and position itself as West Africa’s logistics gateway, policy must focus on lowering bottlenecks rather than creating additional cost layers,” he added.
Revenue Growth Must Be Matched With Transparency
Also reacting to The Ameh News inquiry, chartered accountant and financial analyst Peter Adebayo, FCA, said the issue goes beyond revenue generation and touches on transparency, accountability, and economic efficiency.
Adebayo acknowledged that inflation, exchange-rate pressures, and rising operational expenses may justify periodic tariff reviews.
However, he argued that stakeholders deserve clear explanations regarding how the additional funds would be utilised.
“No one disputes that airport infrastructure requires continuous investment. The real issue is transparency and value creation,” Adebayo said.
“When an agency is already generating more than ₦358 billion annually and introduces new layers of charges, stakeholders naturally want to know what infrastructure projects, technology upgrades, or service improvements those additional revenues will finance.”
He further observed that Nigeria’s cargo ecosystem appears increasingly imbalanced.
“FAAN remains the largest beneficiary financially. NAHCO and SAHCO are profitable service providers. Airlines earn cargo revenues, while freight forwarders and clearing agents bear much of the operational pressure because they interface directly with every charge imposed by regulators and service providers.”
According to him, regulators should avoid creating a system where operational efficiency is sacrificed in pursuit of short-term revenue gains.
Freight Forwarders Face the Greatest Pressure
Unlike FAAN, NAHCO, and SAHCO, there are no publicly available consolidated revenue figures for Nigeria’s freight forwarding industry.
Yet analysts say freight forwarders remain among the most important players in the supply chain, facilitating customs documentation, cargo clearance, logistics coordination, and delivery services.
Industry operators complain that they absorb the impact of charges imposed by multiple agencies, including customs authorities, airport operators, airlines, terminal operators, and security agencies.
As costs rise, importers and exporters pass the burden to consumers, contributing to higher prices across the economy.
Balancing Revenue and Competitiveness
The controversy has reignited a broader national conversation about the role of government agencies in commercial activities.
Supporters of FAAN argue that airports require substantial investment to maintain global standards and improve cargo infrastructure.
Critics, however, insist that regulators should not appear to be competing with operators they regulate by introducing multiple layers of charges within the same ecosystem.
For many stakeholders, the central question remains whether Nigeria’s aviation sector should prioritise revenue extraction or competitiveness.
With Nigeria seeking to expand exports, attract foreign investment, and strengthen regional trade under AfCFTA, industry experts say achieving that balance will determine whether the country’s cargo sector becomes a catalyst for economic growth or another source of rising business costs.
As the debate continues, one thing is clear: the battle over FAAN’s cargo charges has evolved into a larger discussion about the future structure, efficiency, and sustainability of Nigeria’s aviation economy.
FAAN’s ₦358bn revenue earnings, new cargo tariffs and direct warehouse collections have triggered industry backlash. Economists and financial experts warn of rising logistics costs and competitiveness risks for Nigeria.