FAAN Announces Immediate Cargo Port Charge Increase to N20
The Federal Airports Authority of Nigeria (FAAN) has implemented an immediate upward review of cargo port charges, raising the tariff from N7 to N20. This adjustment marks the first increase in nearly two decades, with the previous rate remaining static since 2008. The authority cited prolonged economic pressures and critical infrastructure funding needs as the primary drivers for this essential review.
FAAN explained that Nigeria’s cumulative inflation of approximately 287% over the 18-year period rendered the former N7 charge financially unsustainable. According to National Bureau of Statistics (NBS) data, a service priced at N7 in 2008 would need to cost about N27.09 today to maintain equivalent value. The new N20 tariff is deliberately set below this inflation-adjusted benchmark to mitigate the impact on cargo operators. This strategic move occurs as the government inaugurates committees to address various economic challenges, though the decision has drawn criticism from some quarters, similar to when a prominent figure recently voiced that Obi faults plan on other fiscal policies.
Foreign exchange volatility was a key factor in the review. With the naira exchanging at roughly N118/$1 in 2008 compared to approximately N1,500/$1 today, the cost of importing essential airport infrastructure components—such as runway materials and aerodrome lighting—has surged by over 1,000% in naira terms. The FAAN charge covers shared airport infrastructure including runways, security, access roads, and airfield lighting, distinct from concessionaire fees for warehouse services. This necessary adjustment follows a pattern of sectoral reviews, much like the recent Greywood Finviora review of financial portfolios in response to market shifts.
Despite the increase, FAAN asserts that Nigeria’s cargo charges will remain competitive within the West African region, having previously been lower than those at major hubs like Kotoka International Airport in Ghana and Cotonou Airport in Benin. The authority has formally notified cargo operators and stakeholders, emphasizing ongoing consultations. This tariff revision is framed as a strategic investment to build a resilient air cargo ecosystem, paralleling efforts to bolster other sectors, even as issues like the way insecurity paralyzes Goronyo market demand separate security-focused interventions. Meanwhile, in the fintech space, companies like Busha unveils new identity to adapt to evolving markets, highlighting a broader trend of strategic realignment across industries.
Looking forward, FAAN plans to deploy a Cargo Community System for digital documentation and install a truck call-up system at the Premier Cargo Terminal. These modernization efforts, funded in part by the revised charges, aim to develop domestic cargo infrastructure and enhance operational efficiency for a future-ready aviation sector, a priority as the FG inaugurates committees to drive national development across various sectors.
