JUST IN: FAAN increases cargo port charge after 18 years

The Federal Airports Authority of Nigeria (FAAN) has increased its cargo port charge to ₦20, marking the first upward review of the tariff in nearly two decades.

The adjustment took effect immediately, according to information obtained from FAAN on Friday.

FAAN said the review was driven by inflation, foreign exchange pressures and the need to fund cargo infrastructure.

The authority said the cargo tariff had remained unchanged since 2008 despite significant changes in Nigeria’s economic conditions.

FAAN said cumulative inflation over the period stood at about 287 percent, making the former ₦7 charge financially unsustainable.

The authority said data from the National Bureau of Statistics showed that a service priced at ₦7 in 2008 should now cost about ₦27.09 to retain the same value.

FAAN said the new ₦20 tariff was deliberately set below the inflation-adjusted benchmark to limit the cost burden on cargo operators.

“FAAN has increased tariffs after careful consideration of current economic realities, our tariffs have remained static since 2008,” the authority said.

“Over the past 18 years, Nigeria has experienced significant inflation (approximately 287%) and a drastic depreciation of the naira,” it added.

“This adjustment is essential to sustain and upgrade critical airport infrastructure, which has become financially unsustainable under the old rates,” FAAN said.

The authority also cited foreign exchange pressures as a major factor behind the review.

FAAN said the naira exchanged at about ₦118 to the dollar in 2008 compared to roughly ₦1,500 to the dollar currently.

It said operating and maintenance costs had risen by more than 1,000 percent in naira terms because key airport infrastructure components are imported.

FAAN said the cargo port charge is different from fees paid to private concessionaires operating cargo terminals.

The authority said its charge covers shared infrastructure such as runways, taxiways, perimeter fencing, security, access roads and airfield lighting.

FAAN said concessionaire fees apply to cargo handling, storage and documentation services provided within private warehouse terminals.

The authority said Nigeria’s cargo charges would remain competitive within west Africa even after the review.

FAAN said cargo charges at Nigerian airports were previously lower than those at Kotoka international airport in Ghana and Cotonou airport in Benin.

It said the adjustment would align Nigeria’s tariffs more closely with regional standards while preserving the country’s attractiveness to cargo operators.

FAAN said the cargo port charge accounts for only a small fraction of total air freight costs and is unlikely to significantly affect consumer prices.

The authority said improved infrastructure could reduce delays, enhance turnaround times and improve efficiency across the cargo value chain.

FAAN said revenue from the revised tariff would be reinvested in cargo-related infrastructure.

The authority said planned projects include rehabilitation of aprons and access roads, improved perimeter security and upgrades to airfield lighting.

FAAN said it also plans to deploy a cargo community system for digital documentation and install a truck call-up system at the premier cargo terminal.

The authority said domestic cargo infrastructure development is also part of the plan.

FAAN said cargo operators and other stakeholders have been formally informed of the tariff review.

The authority said consultations are ongoing and described the adjustment as a strategic investment in building a resilient and efficient air cargo ecosystem.