The Federal Airports Authority of Nigeria (FAAN) has increased cargo port charges to N20, marking the first upward review of the tariff in nearly two decades.
The adjustment, which took immediate effect, was obtained exclusively from FAAN on Friday, January 30. The authority said the decision was driven by prolonged inflation, foreign exchange pressures and the need to fund and sustain critical cargo infrastructure at Nigerian airports.
FAAN explained that the cargo tariff had remained unchanged at N7 since 2008, despite major shifts in Nigeria’s economic environment over the past 18 years. According to the authority, cumulative inflation during the period stood at about 287 percent, making the old rate financially unsustainable.
Citing data from the National Bureau of Statistics, FAAN noted that a service priced at N7 in 2008 should cost approximately N27.09 today to maintain the same value. It added that the new N20 charge was deliberately set below this inflation-adjusted benchmark to avoid transferring the full cost burden to cargo operators.
“FAAN has increased tariffs after careful consideration of current economic realities. Our tariffs have remained static since 2008. Over the past 18 years, Nigeria has experienced significant inflation (approximately 287 percent) and a drastic depreciation of the naira. This adjustment is essential to sustain and upgrade critical airport infrastructure, which has become financially unsustainable under the old rates,” the authority said.
FAAN also identified foreign exchange pressures as a major factor behind the review. In 2008, the naira exchanged at about N118 to the dollar, compared with roughly N1,500 to the dollar today. The authority said that because essential airport infrastructure components—such as runway asphalt, aerodrome lighting and fire truck parts—are imported, operating and maintenance costs had risen by more than 1,000 percent in naira terms.
Addressing concerns about double taxation, FAAN clarified that the cargo port charge was separate from fees imposed by concessionaires. While FAAN’s charge covers shared airport infrastructure including runways, taxiways, perimeter fencing, security, access roads and airfield lighting, concessionaire fees apply to cargo handling, storage and documentation services provided within private warehouse terminals.
The authority said that even with the revised tariff, Nigeria’s cargo charges would remain competitive within West Africa. It noted that prior to the review, charges at Nigerian airports were lower than those at major regional hubs such as Kotoka International Airport in Ghana and Cotonou Airport in Benin.
FAAN added that the adjustment would align Nigeria’s charges more closely with regional standards while preserving the country’s attractiveness to air cargo operators and investors. It downplayed the potential impact on consumer prices, stating that the cargo port charge accounts for only a small fraction of total air freight costs.
According to the authority, improved infrastructure funded by the revised tariff could reduce delays, improve turnaround times and enhance efficiency across the cargo value chain. FAAN said revenue from the new charges would be reinvested in cargo-related infrastructure, including the rehabilitation of aprons and access roads, enhanced perimeter security and upgrades to airfield lighting.
Planned projects also include the deployment of a Cargo Community System for digital documentation, installation of a truck call-up system at the Premier Cargo Terminal and the development of domestic cargo infrastructure. FAAN added that cargo operators and other industry stakeholders had been formally informed of the review, noting that consultations were ongoing.
The authority described the tariff adjustment as a strategic investment aimed at building a resilient, efficient and future-ready air cargo ecosystem in Nigeria.
Cargo port charges are fees collected by airports to maintain and operate shared infrastructure used for air cargo operations. They are distinct from fees paid to private cargo handling companies for services such as storage, documentation and warehouse operations. The increase to N20 means FAAN will earn more revenue per ton of cargo handled, a development that could influence overall cargo costs and, indirectly, air freight pricing.
The review comes amid broader increases in aviation-related levies. On December 1, 2025, the Nigerian Civil Aviation Authority introduced an additional $11.5 security fee under the Advance Passenger Information System, raising the total security levy per ticket to $31.50. The APIS levy applies to all passengers arriving in or departing from Nigeria and is remitted by airlines to the NCAA.
In 2024, Nigeria generated $62 million from airline ticket taxes as part of a wider $1.97 billion collected across Africa, contributing to a global total of $60.3 billion in ticket-tax revenue.
