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    Innovation Village | Technology, Product Reviews, Business
    You are at:Home»Government»FAAN Cuts MMIA Cargo Port Charge After Negotiations

    FAAN Cuts MMIA Cargo Port Charge After Negotiations

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    By Jessica Adiele on February 10, 2026 Government, Regulation

    The Federal Airports Authority of Nigeria (FAAN) has reduced the cargo port charge at the Murtala Muhammed International Airport (MMIA), Lagos, to ₦15 per kilogram, following weeks of negotiations with air cargo operators and licensed customs agents.

    The decision marks a compromise after industry pushback against FAAN’s earlier proposal to raise the charge to ₦20 per kilogram. The revised tariff was announced in a statement signed by FAAN’s Director of Public Affairs and Consumer Protection, Henry Agbebire, and published on the Authority’s official X (formerly Twitter) page on Tuesday.

    MMIA is Nigeria’s busiest air cargo hub, and the adjustment is expected to ease tensions across the cargo value chain, reopen stalled warehouses, and restore normal cargo operations after recent disruptions.


    A Compromise After Industry Pushback

    FAAN said the new ₦15 per kilogram rate represents a middle ground between its proposed ₦20 charge and the long-standing ₦7 per kilogram tariff, which had remained unchanged since 2008.

    According to the Authority, the agreement was reached after a stakeholders’ meeting held on Monday, February 9, 2026, at the MMIA Terminal 2 Conference Room. The meeting was chaired by Lekan Thomas, Director of Cargo Development and Services at FAAN, and attended by representatives of Customs Licensed Cargo Agents and other industry players.

    “The Federal Airports Authority of Nigeria has reached an agreement with Customs Licensed Cargo Agents operating at the Murtala Muhammed Airport, Lagos, on the proposed review of cargo port charges,” FAAN said.

    “After constructive deliberations, both parties agreed on a revised port charge of ₦15.00 per kilogramme, representing a compromise on the earlier proposed ₦20.00/kg and an upward review of the existing ₦7.00/kg.”

    FAAN added that the revised charge is designed to support sustainable infrastructure development while improving the ease of doing business at Nigeria’s busiest international airport.

    Why the Tariff Review Sparked Controversy

    The tariff adjustment follows sharp divisions among Lagos-based cargo operators after FAAN announced the proposed increase to ₦20 per kilogram on January 30.

    The proposed hike was the first review of cargo port charges in nearly two decades and triggered mixed reactions across the industry.

    Some operators argued that the increase was long overdue and necessary to fund infrastructure upgrades, improve security, and modernise cargo handling facilities at MMIA. Others, however, described the jump from ₦7 to ₦20 per kilogram as too steep and poorly timed, especially given persistent operational challenges.

    Several agents pointed to ongoing issues such as congestion, staffing shortages, manual processing bottlenecks, and delays at cargo terminals, arguing that higher tariffs alone would not fix systemic inefficiencies.

    The disagreement escalated into industrial action, with cargo warehouses locked and inbound shipments withheld, particularly consignments billed under the old tariff. The disruption raised concerns about supply chain delays, rising logistics costs, and the broader impact on Nigeria’s trade ecosystem.

    How FAAN Plans to Use the Revenue

    FAAN has said revenue from the revised cargo tariff will be channelled directly into upgrading airport and cargo infrastructure.

    In a recent interview with Nairametrics, the Authority outlined a series of projects tied to the tariff review, including:

    • Rehabilitation of aprons and access roads
    • Upgraded security infrastructure
    • Improved airfield lighting systems
    • Expansion of digital and automation platforms

    FAAN also confirmed plans to pilot a Cargo Community System (CCS) in Lagos within 12 months, aimed at digitising cargo documentation and improving coordination among agencies. A Truck Call-Up System is expected within nine months, with Abuja identified as a secondary pilot location.

    According to the Authority, these initiatives could reduce truck turnaround time by at least 30% within the first year and cut cargo dwell time by up to 50% within three years.

    FAAN further stated that at least 70% of incremental cargo tariff revenue would be reinvested into cargo infrastructure. Performance will be monitored through key performance indicators, a Cargo Tariff Oversight Committee with stakeholder representation, and bi-annual public performance reports.

    What This Means for Nigeria’s Air Cargo Sector

    Nigeria’s air freight market is valued at over $8 billion, with Lagos, Abuja, Port Harcourt, and Kano serving as major cargo gateways. Lagos alone accounts for the largest share of inbound and outbound cargo volumes.

    The sector is being driven by the growth of e-commerce, SME trade, and diaspora-linked shipments, particularly on routes from China, the United States, and the United Kingdom.

    However, industry experts note that Nigeria still faces higher logistics costs compared with regional air cargo hubs, largely due to inefficiencies after cargo arrival. Bottlenecks at warehouses, inter-agency coordination gaps, and weak last-mile delivery systems remain major challenges.

    Stakeholders argue that while the revised ₦15 per kilogram charge may increase operating costs, its long-term impact will depend on whether FAAN delivers on promised infrastructure upgrades, digitisation, and transparency.

    If effectively implemented, improved cargo infrastructure and clearer stakeholder alignment could position Nigeria’s air cargo sector for steadier growth, improved export competitiveness, and stronger integration into global trade networks.

    FAAN Raises Cargo Port Charges to ₦20 After 18 Years

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    Jessica Adiele

    A technical writer and storyteller, passionate about breaking down complex ideas into clear, engaging content

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