Connect with us

Aviation

 Controversy over N1.8bn severance package rocks SAHCO

Barrister Taiwo Afolabi, EVC, SIFAX
Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Aviation

Tension de-escalates at Lagos Airport as FAAN, Cargo agents reach truce over new tariff

Funso OLOJO, Editor
The brewing crisis over the new cargo tariff introduced by the Federal Airports Authority of Nigeria( FAAN) may have been de- escalated  as the Airport Authority and the aggrieved Customs Licensed Cargo Agents have reached a compromise over the controversial tariff.
It could be recalled the new tariff regime of N20 per kilogram introduced by FAAN has sparked off a row between the airport authority and the cargo agents who vowed to resist the increase from the initial N7 per kilogram.
Tension has heightened when the two warring parties stuck to their gun with FAAN issuing a quit notice to the residents cargo agents and a threat to demolish their associations’ Secretariat.
However sanity prevailed after about one week of stand- off between the two gladiators as they both met for dialogue on Monday February 9th, 2026.
According to the statement issued by FAAN, the two sides have reached an agreement on the proposed review of cargo port charges.
“The agreement was achieved at a stakeholders meeting held on Monday February 9th, 2026,at the MMIA Terminal 2 conference room chaired by the Director of Cargo Development and Services, Mr Lekan Thomas.
“After constructive deliberation, both parties agreed on a revised port charges of N15.00 per kilogram, representing a compromise from the earlier proposed N20.00kg and an upward review of the existing #N7.00kg.
“The outcome reflects the spirit of dialogue, partnership and  shared responsibility.
“FAAN believes the resolution will enhance ease of doing business at MMIA while supporting sustainable airport and cargo infrastructure development.
“The Authority reaffirms it’s commitment to continuous stakeholders engagement,the SEDI(safety, efficiency, development and innovation) principles and the ongoing modernization of cargo terminal facilities.
“FAAN appreciates the cooperation of the customs Licensed cargo Agents and looks forward to sustained collaboration in advancing Nigeria’s air cargo sector” the Airport Authority stated.
Dr Segun Musa, the Vice- President of the National Association of Government Approved Freight Forwarders (NAGAFF) and one of the leaders of the warring associations at the Cargo Airport, confirmed the truce.
” Yes, we met yesterday, Monday (February 9th 2026) and we agreed on N15 per Kilogram.
“We agreed with FAAN in the interest of the economy, so that work could go on.
“The situation is now normalized” Musa declared.
Continue Reading

Aviation

Why we increased cargo tariff at Airports– FAAN

.
.
Funso OLOJO: 
The Federal Airports Authority of Nigeria(FAAN), has come out to defend its controversial tariff increase at the Airport. It could be recalled that this tariff hike has sparked off an outrage among the freight forwarders plying their trade at the FAAN facilities, who have accused FAAN of mischief and “institutional blackmail”
The leadership of the angry customs licensed agents associations such as the Association of Nigeria Licensed Customs Agents (ANLCA), National Association of Government Approved Freight Forwarders(NAGAFF), APFFLON and NAFFAC, have all jointly condemned the new tariff regime, describing it as illegal, double taxation and unilaterally imposed by the Airport Authority without consultation with the relevant stakeholders.
However, the management of FAAN, in its  reaction to these plethora of allegations, has issued a statement, clarifying the rationale behind the increase and refuting the allegations of extortion and unilateral action made by the angry stakeholders.

FAAN stated it’s own side of the story thus

 

Why we increase the tariff?

FAAN has increased tariffs after careful consideration of current economic realities.
Our tariffs have remained static since 2008. Over the past 18 years, Nigeria has experienced significant inflation (approximately 287%) and a drastic depreciation of the Naira.

This adjustment is essential to sustain and upgrade critical airport infrastructure, which has become financially unsustainable under the old rates.

The tariff is increasing from ₦7 to ₦20. Isn’t this a huge jump?

While the percentage increase appears large, it is important to view it in the context of time and inflation.
Based on data from the National Bureau of Statistics (NBS), a service that cost ₦7 in 2008 should cost about ₦27.09 today just to have the same value.

The new tariff of ₦20 is actually below this inflation-adjusted benchmark. This demonstrates FAAN’s commitment to sharing the burden and not passing the full cost onto operators.

How does the foreign exchange (FX) rate affect airport charges?

A significant portion of the equipment and materials needed for airport infrastructure—such as runway asphalt, aerodrome lighting, and fire truck parts—are imported.
In 2008, the exchange rate was about ₦118/$1. Today, it is about ₦1,500/$1.

This means the cost of these essential items has increased by over 1,000%. The tariff review is crucial to generate the necessary revenue in Naira to meet these dollar-denominated costs.

How does Nigeria’s new cargo tariff compare to other countries in West Africa?

Our analysis shows that even with this adjustment, Nigeria’s cargo charges will remain competitive. Prior to this review, our charges were lower than those at major regional hubs like Kotoka International Airport (Ghana) and Cotonou Airport (Benin).

This move aligns us closer to regional standards while ensuring we remain an attractive destination for air cargo operators and investors.

Is this not a form of double taxation on top of what the concessionaires charge?

No, this is not double taxation. There is a clear distinction between the two charges:”FAAN Port Charge: This covers the use of shared airport infrastructure that everyone benefits from, such as runways, taxiways, perimeter fencing, security, access roads, and airfield lighting.

It is like a toll for using the airport’s common facilities.
Concessionaire’s Handling Fee: This fee is charged by the private warehouse operators for specific services they provide within their terminals, such as cargo handling, storage, and documentation.
Will this tariff increase lead to higher prices for goods and services for the average consumer?
FAAN expects the impact on consumer prices to be minimal. The Port Charge is a very small component of the total cost of air freight.

The significant benefits of improved infrastructure—such as faster turnaround times and reduced delays—will ultimately lead to greater efficiency and could help stabilize or even lower logistics costs in the long run.

What specific projects will the revenue from this tariff increase be used for?

The additional revenue will be reinvested directly into critical cargo infrastructure projects, including:”Rehabilitation of aprons and access roads to cargo terminals.

Enhanced perimeter security and access control systems.
Implementation of a Cargo Community System (CCS) for digital documentation.
Installation of a Truck Call-Up System to reduce congestion at the Premier Cargo Terminal (PCT).
Upgrades to airfield lighting and other essential facilities.
Development of domestic cargo infrastructure.
Was there any consultation with stakeholders before this decision was made?
“Yes. FAAN is committed to transparent stakeholder engagement. Formal communication has been sent to all cargo operators and industry players.
Furthermore, stakeholder consultations are ongoing and will continue as a permanent exercise.

This ensures that all relevant parties are informed about cargo initiatives and can provide feedback.

What is the long-term goal of this tariff adjustment?

This is not merely a revenue-generation measure. It is a strategic investment in the future of Nigeria’s air cargo sector.

The goal is to build a resilient, efficient, and future-ready cargo ecosystem that is globally competitive, enhances security, and supports economic growth”

Continue Reading

Aviation

Freight forwarders warn FAAN’s new charges regime could cripple airport operations 

Funso OLOJO 
The Customs licensed agents plying their trade at the Lagos Airport have called for dialogue to diffuse the brewing crisis in the logistics sector of the aviation industry.
Their appeal follows the stand- off between them and the Federal Airport Authority of Nigeria(FAAN) after the latter slammed a higher tariff on the freight forwarders.
The leadership of the Airport freight forwarders, while briefing the press on Tuesday, February 4th, 2026, described  the new charges by FAAN as an arbitrary and unilateral, warning that the increase, if not reviewed through dialogue, could disrupt cargo operations across airports nationwide and further depress government revenue.
The position of the freight forwarders was harmonised by leaders of major associations operating at the nation’s airports, including the National Association of Government Approved Freight Forwarders (NAGAFF), the Association of Nigerian Licensed Customs Agents (ANLCA), African Professionals Freight Forwarders and Logistics of Nigeria (APFFLON) and NAFFAC.
The briefing was addressed, among others, by Dr. Segun Musa, Deputy National President of NAGAFF in charge of Air and Logistics, and Mr. Tope Akindele, Chairman of ANLCA Airport Chapter.
Speaking on behalf of the groups, Dr. Musa traced the controversy to an agreement reached with FAAN in 2010 over the collection of a seven-naira-per-kilogram levy on cargo, which, according to him, was tied to the allocation of land for the development of a cargo village at the airport.
He explained that prior to that agreement, FAAN had been collecting two naira per kilogram, a charge the freight forwarders had challenged on the grounds that FAAN, having concessioned cargo operations to companies such as NAHCO and SAHCOL, was not directly proving cargo handling services.
He said the associations had formally written to FAAN at the time, arguing that the two-naira charge was illegal, a move that led to prolonged negotiations that reportedly lasted for about two weeks which he said disrupted activities at the airport.
 According to him, the eventual compromise was the introduction of the seven-naira charge in exchange for the allocation of land to build a cargo village, a deal he said formed the basis of the current arrangement.
“The seven naira we are talking about is attached to this land. It is like rent on this land,” Musa said, insisting that FAAN had no right to impose fresh charges without first engaging stakeholders.
He argued that, just as the Nigerian Ports Authority (NPA) relates with terminal operators after concessioning the seaports, FAAN should deal with its concessionaires rather than directly imposing charges on operators.
The freight forwarders also raised financial concerns, claiming that FAAN had already made substantial sums from the seven-naira levy over the years.
Musa said that in 2010 alone, FAAN collected over one billion naira from the charge and that from 2010 to date, the cumulative amount would be far higher than the value of the land allocated for the cargo village.
The immediate trigger for the latest dispute, according to the associations, is FAAN’s decision to increase the existing charges without consultation, a move they said was followed by a threat letter warning of possible demolition of their secretariats
The groups described this move by FAAN as coercive and counterproductive, stressing that they were not opposed to a review of charges but insisted it must be done through dialogue.
They argued that rather than imposing higher fees, FAAN should work with operators to create an enabling environment that would increase cargo throughput, which in turn would raise revenue.
“The more cargo we have, the more revenue they generate,” Musa declared, adding that the present approach would only hurt all parties involved.
Mr. Tope Akindele, Chairman of ANLCA Airport Chapter, said the ongoing standoff had already begun to affect revenue generation.
 He noted that cargo activities had slowed in recent days because many operators were staying away from work in protest.
According to him, if a concessionaire that used to make about one billion naira weekly is now making roughly half of that, continued disruption could lead to even worse outcome for government revenue.
He stressed that the associations were not trying to sabotage government earnings, noting that any revenue yet to be paid due to the slowdown would still be collected once normal operations resume.
 “We want government daily revenue to continue. We are not frustrating government revenue. We are ready to continue paying, but let us dialogue within the shortest time so our job can commence,” he said.
Akindele also argued that globally, increments in charges are usually benchmarked around 25 per cent, adding that this was the standard the associations are willing to consider.
 Beyond that, he said, stakeholders should jointly explore ways to increase cargo volume rather than rely solely on higher levies.
Other speakers at the briefing raised concerns about what they described as multiple layers of charges on the same cargo.
 They pointed out that cargo handlers and airlines already collect various fees per kilogram, which are ultimately remitted to FAAN, and argued that imposing additional charges on freight forwarders amounts to double or even triple taxation within the same cargo chain.
One of the speakers claimed that, aside from payments to cargo handlers and airlines, some charges could reach as high as 30 naira per kilogram in certain instances, warning that piling more levies on operators would further increase the cost of doing business and weaken the competitiveness of Nigeria’s air cargo sector.
The associations also recalled that the original dispute over the legality of the levy had not been fully resolved in court, but was set aside in favour of a mutual understanding aimed at keeping the industry running.
They warned that if FAAN proceeds unilaterally or attempts to formalise the new charges without broad stakeholder agreement, the matter could return to the courts.
In a joint appeal, the freight forwarders called on the Minister of Aviation to intervene and prevail on FAAN to open talks with stakeholders.
They stressed that they were not protesting, not carrying placards, and not seeking confrontation, but were instead asking for engagement that would lead to a mutually beneficial resolution.
They warned that if cargo operations at airports across the country were to grind to a halt, the wider economy would suffer, describing such a scenario as a “lose-lose” situation for operators and government alike.
Despite the tension, they said they had advised members nationwide to continue working and avoid actions that could escalate the situation.
The associations assured the Federal Government that once negotiations begin, normal operations would resume immediately, with the existing status quo maintained, pending the outcome of negotiation.
They also reiterated their willingness to work with FAAN and other government agencies to grow cargo volumes and, by extension, government revenue.
“We are here to appeal. We are not here to threaten or to protest or to cause a breakdown of law and order,” Musa said, adding that most operators depend on daily airport activities to feed their families and sustain their businesses.
At the end of the briefing, the leaders of the four major freight forwarding associations present insisted that no group had been mandated to sign any agreement behind the others, stressing that any resolution must carry the collective consent of the industry’s recognised leadership.
Continue Reading

Trending