Nigeria's Federal Airports Authority of Nigeria has begun implementing an increase in airport cargo levies, raising the charge from N7 per kilo, about US$0.004, to N25 per kilo, about US$0.02. Exporters say the adjustment adds to existing cost pressures that already affect the competitiveness of Nigerian fresh produce in export markets.
In 2024, Nigeria exported airfreighted agricultural produce, classified as perishables, valued at about N220 billion, equivalent to roughly US$138 million, according to data from the National Bureau of Statistics. Exporters said volumes declined during the year due to rising export costs, which also influenced pricing in overseas retail and wholesale channels.
Exporters indicated that the FAAN levy increase adds to multiple charges already applied by airlines, handling companies, and government agencies at Nigerian airports. They said the combined costs have increased freight rates and reduced competitiveness, as comparable fresh produce from other origins reaches international markets at lower prices.
An exporter at the cargo terminal of Murtala Muhammed International Airport in Lagos said several service providers regularly adjust fees, adding pressure on exporters. "We are no longer competitive. Our pepper 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."
Separately, cargo agents at Lagos airport have petitioned security authorities and regulatory bodies following FAAN's warning that their secretariats could be demolished over opposition to the new tariff regime. The associations involved said the proposed action conflicts with agreements linked to the construction of the facilities about 15 years ago.
Freight forwarding groups said the tariff increase was introduced without consultation and warned it would raise costs for exporters and importers and affect trade volumes and pricing of Nigerian fresh produce exports.
Source: This Day Live
