Nigeria raises airport cargo levy, threatens farm export competitiveness
Exporters warn higher charges could push produce out of global markets.
NIGERIA – The Federal Airports Authority of Nigeria (FAAN) has raised its airport cargo levy from US$0.004 to US$0.016 per kilogram, a fourfold increase that exporters say will raise the cost of sending Nigerian farm produce abroad.
According to the National Bureau of Statistics, Nigeria exported farm produce by air worth about US$146 million (N220 billion) in 2024. Exporters report that rising costs have already led to lower volumes and reduced competitiveness in international markets.
An exporter at the Cargo Terminal of Murtala Muhammed International Airport in Lagos said, “We are no longer competitive. Our bananas, peppers, and vegetables are organic, but the prices of the produce have increased, which made them uncompetitive. Recently, the levies increased the price of exporting the produce from US$3 per kilo to US$14 per kilo.”
He added, “So, we are pricing ourselves out of the market. The price is too much for the shipping. The cost of our produce abroad is higher than that of other countries.”
Industry participants report that the FAAN levy is only one of several costs exporters face. Airlines, cargo handling companies, and government agencies have all increased charges, raising the total cost of shipping produce.
“If FAAN increases the tariff, it is the importer or exporter that will pay the price. FAAN, handling companies, and airlines make arguments that they want to generate more revenue, but their action has ripple effect on the price of the produce exported,” the exporter said.
Industry pushback
Cargo agents at Lagos airport have petitioned top government officials, including the Inspector General of Police, the Comptroller General of the Nigeria Customs Service, and the Director-General of Civil Aviation, in response to FAAN’s plan to demolish their secretariats following resistance to the tariff increase.
Affected associations include the National Association of Government Approved Freight Forwarders, the Association of Nigerian Licensed Customs Agents, the Africa Association of Professional Freight Forwarders and Logistics, and the National Association of Freight Forwarders and Consolidators. They describe the levy increase as unilateral and warn it may further raise costs for both importers and exporters.
The development comes as Nigeria continues to struggle with retaining a competitive position in air cargo exports amid increasing global demand for fresh produce. Exporters stress that if costs continue to rise, volumes could fall sharply, affecting both market presence and farm incomes.
“So, the exporter, for example, will reduce his exports from 10 tons to 5 tons so that he will be able to pay for them. This reduces the volume of what Nigeria exports to the international market,” the Lagos-based exporter concluded.
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