FAAN, Licensed Cargo Agents Agree On ₦15/kg Port Charge At Lagos Airport

The Federal Airports Authority of Nigeria, (FAAN), has reached an agreement with licensed cargo agents operating at the Murtala Muhammed International Airport, (MMIA) Lagos, on a revised cargo port charge tariff.

The resolution followed stakeholder consultations aimed at addressing long-lasting concerns over airport cargo charges while balancing infrastructure funding needs and operational sustainability.

According to FAAN, the agreement was achieved during a stakeholders’ meeting held on Monday, 9 February 2026, at the MMIA Terminal Two Conference Room. The meeting was chaired by Director of Cargo Development and Services, Mr Lekan Thomas, had other FAAN officials and representatives of licensed cargo agents working across the airport’s cargo ecosystem were in attendance.

Both parties agreed after protracted deliberations, on a revised port charge of ₦15 per kilogram. The figure represents a compromise between FAAN’s earlier proposal of ₦20 per kilogram and the long-standing ₦7 per kilogram charge that had been in place for nearly two decades.

FAAN described the outcome of the agreement as a reflection of dialogue, partnership, and shared responsibility with licensed cargo agents

FAAN had earlier clarified that the tariff review was driven by economic realities that had made the existing rate unsustainable. Cargo tariffs at Nigerian airports have remained unchanged since 2008, despite sharp increases in inflation and operating costs. Over the past 18 years, inflation has risen by an estimated 287 per cent, while the value of the naira has declined significantly, weakening FAAN’s ability to maintain essential cargo infrastructure.

In clarifying the scale of the adjustment, FAAN cited data from the National Bureau of Statistics. Based on inflation trends, a service that cost ₦7 in 2008 would now cost about ₦27.09 to retain the same value. Against that benchmark, FAAN said the originally proposed ₦20 tariff was already below the inflation-adjusted figure, while the agreed ₦15 rate further demonstrated sensitivity to the concerns raised by licensed cargo agents

The Reason Why FAAN, Licensed Cargo Agents Reached A Compromise

FAAN had put forward as reason for the review to include foreign exchange pressures. It noted that critical airport infrastructure components, including runway materials, airfield lighting systems, and fire-fighting equipment, are largely imported. In 2008, the exchange rate averaged about ₦118 to one US dollar. Currently, it trades around ₦1,500, pushing infrastructure costs up by more than 1,000 per cent in naira terms.

FAAN affirmed that even with the revised tariff, Nigeria’s cargo charges remain competitive within West Africa.

According to the authority, its rates had previously been lower than those at regional hubs such as Kotoka International Airport in Ghana and Cotonou Airport in Benin. The adjustment, it noted, aligns Nigeria more closely with regional standards without eroding its attractiveness to cargo operators and investors.

On the issue of double taxation, FAAN explained that its port charge is separate from fees collected by concessionaires. While FAAN’s charge covers shared airport infrastructure such as runways, taxiways, security, perimeter fencing, access roads, and airfield lighting, concessionaire handling fees apply only to warehouse services like cargo processing, storage, and documentation.

FAAN said this distinction was clearly explained to licensed cargo agents during consultations.

FAAN also allayed the fears that the revised tariff would significantly affect consumer prices.

The authority argued that the port charge represents only a small fraction of total air freight costs.

FAAN added that improved infrastructure, reduced congestion, and faster cargo turnaround times, would ultimately improve efficiency and help stabilise logistics costs.

It noted that revenue from the tariff adjustment will be reinvested directly into cargo infrastructure projects at MMIA and other airports. These include rehabilitation of cargo aprons and access roads, improved perimeter security, digital documentation through a Cargo Community System, and truck call-up systems to reduce congestion at cargo terminals.

FAAN reaffirmed its commitment to continuous stakeholder engagement, the SEDI principles of Safety, Efficiency, Development, and Innovation, and sustained collaboration with licensed cargo agents to strengthen Nigeria’s air cargo sector.