The Federal Airports Authority of Nigeria has implemented an increase in cargo levy from N7 per kilo to N25 per kilo. Exporters state that the measure will raise the cost of agricultural produce exported by air, at a time when Nigerian perishables are already facing rejection in international markets due to pricing.
According to the National Bureau of Statistics, Nigeria exported farm produce by air worth about N220 billion (US$146 million) in 2024. Exporters report that volumes declined as export costs increased, affecting retail pricing abroad.
Industry participants state that the FAAN tariff adjustment adds to existing charges by airlines, handling companies, and government agencies operating at airports. An exporter at the Cargo Terminal of Murtala Muhammed International Airport in Lagos said that levies from DHL, Air France, other cargo airlines, handling companies, the Nigeria Customs Service, the Quarantine Service, and security agencies have increased at intervals.
The exporter stated, "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 $3 per kilo to $14 per kilo.
"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.
"If FAAN increases the tariff, it is the importer or exporter that will pay the price. The clearing agent is not suffering. 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.
"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."
Cargo agents at Lagos airport have petitioned the Inspector General of Police, the Comptroller General of the Nigeria Customs Service, the Director-General of Civil Aviation, and other agencies over a reported plan by FAAN to demolish their secretariats following resistance to the new tariff.
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. The agents describe the tariff increase as unilateral and state that it may lead to higher costs for importers and exporters.
Source: This Day
