The Federal Airports Authority of Nigeria has implemented an increase in cargo levy from ₦7 per kilo to ₦25 per kilo. Exporters state that the higher charge will further raise the cost of agricultural exports, which they say are already facing rejection in international markets due to pricing.
In 2024, Nigeria exported perishables by air valued at ₦220 billion, equivalent to about US$162.90 million, according to the National Bureau of Statistics. Exporters report that volumes have declined due to rising export costs, which also affect pricing in overseas retail outlets.
Exporters state that the FAAN tariff increase adds to levies already charged by airlines, ground handling companies, Customs, Quarantine, and other agencies operating at airports. An exporter at the cargo terminal of Murtala Muhammed International Airport stated that shipping costs have risen from US$3 per kilo to US$14 per kilo.
"We are no longer competitive. Our bananas and vegetables are organic, but the prices of the produce have increased, making 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 security agencies over an alleged threat by FAAN to demolish their secretariats. The associations state that the demolition threat is linked to resistance against the new tariff regime.
Freight forwarding associations describe the levy increase as unilateral and state that it may lead to higher costs for importers and exporters, with implications for export competitiveness and overall trade flows.
Source: This Day Live
