FAAN’s 257% Cargo Tariff Surge Sparks Outrage: Freight Costs Set to Soar as Industry Warns of Export Slump

By Emmanuel Kwada

The Federal Airports Authority of Nigeria (FAAN) is pushing ahead with a dramatic upward revision of cargo tariffs, increasing charges from N7 to N25 per kilogram—a staggering 257% hike—effective February 2, 2026.

The move, aimed at bolstering revenue after operational reforms, has ignited fierce backlash from freight forwarders, logistics operators, and aviation experts who fear it will cripple air cargo volumes, inflate business costs, and undermine Nigeria’s non-oil export ambitions.

FAAN defends the adjustment as a necessary step following significant improvements in revenue collection and oversight. The authority attributes the decision to the successful closure of long-standing revenue leakages, particularly through the relocation of operational personnel and revenue desks directly into cargo warehouses at major terminals in Lagos and Abuja.

Reforms implemented by the Cargo Development and Services Directorate have reportedly enhanced transparency, reduced abuse in unaccompanied baggage handling, and boosted collection efficiency at facilities managed by NAHCO Plc and SAHCO.

A senior FAAN official, speaking anonymously, emphasized that prior tariff increases yielded limited benefits due to systemic inefficiencies. “The reforms were essential to ensure that revenue due to FAAN is fully captured,” the official stated.

Additional measures in the pipeline include shifting to a per-kilogram billing model for courier services, tighter collaboration with airlines, ground handlers, customs agents, and the Nigeria Customs Service (NCS), as well as advancing integration with the National Single Window (NSW) platform to streamline documentation and clearance.

Despite these justifications, industry stakeholders argue the timing and scale of the increase are punitive.

The Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has strongly condemned the hike as “excessive and poorly timed,” highlighting that it disregards other FAAN revenue sources, including government subventions.

In a pointed statement, APFFLON President Otunba Frank Ogunojemite warned that the jump to N25 per kg would sharply escalate air cargo costs, discourage exports, raise import prices, and burden Nigerian businesses and consumers.

“This increase comes against the advice and objections of key industry stakeholders and will worsen the already high cost of doing business in Nigeria,” the association declared. “It will undermine efforts to promote non-oil exports and make Nigerian goods less competitive in the international market.”

APFFLON further criticized the absence of visible infrastructure upgrades or service enhancements at many airports to justify the sharp rise, calling for an immediate suspension and genuine stakeholder consultations to pursue balanced revenue strategies that support trade and economic growth.

Aviation analyst Capt. Samuel Caulcrick, a former Rector of the Nigeria College of Aviation Technology (NCAT), echoed these concerns, predicting a significant drop in air cargo volumes.

“Except for urgent, must-go parcels, shippers have alternatives—road, rail, or sea—even for perishables with cold storage on ships,” he noted. Caulcrick added that combined with existing charges like the NCAA’s 5% Cargo Sales Charge (CSC), the new FAAN tariff could “kill the business” by prioritizing revenue over volume growth.

The controversy unfolds against a backdrop of robust global and regional air cargo performance. According to the International Air Transport Association (IATA), full-year 2025 saw global air cargo demand rise 3.4% year-on-year (measured in cargo tonne-kilometers), with capacity up 3.7%. African airlines outperformed, posting 6.0% demand growth and 7.8% capacity increase for the year, accelerating to 10.1% demand growth in December 2025—the strongest regionally.

IATA Director General Willie Walsh attributed 2025’s strength to e-commerce resilience and supply chain adaptations amid global trade shifts, including U.S. tariff policies.

As FAAN prepares to enforce the new rates amid threats of protests by cargo agents, the debate underscores a broader tension: balancing fiscal sustainability with trade facilitation in Nigeria’s aviation sector. Stakeholders urge dialogue to avert disruptions that could hinder the country’s economic diversification goals.