Nigeria is intensifying efforts to expand its non-oil export base through a series of air cargo reforms spearheaded by the Federal Airports Authority of Nigeria (FAAN), combining infrastructure upgrades, revenue initiatives, and regulatory coordination. While government officials project optimism, industry experts remain divided on whether the reforms can deliver measurable long-term gains.
In today’s global economy, speed is often as critical as scale. For Nigeria — rich in agricultural output yet constrained by logistics — the central challenge has long been moving produce efficiently from farms to international markets. Perishable exports such as mangoes, okra, peppers, and leafy vegetables demand seamless cold-chain systems and rapid transit, areas where exporters have historically faced costly bottlenecks.
A Strategic Shift in Aviation Priorities
For decades, Nigeria’s aviation sector has been dominated by passenger traffic concerns: terminal congestion, flight delays, and safety regulation. Cargo operations, by contrast, lagged behind, hampered by fragmented processes, aging facilities, and limited policy attention.
That paradigm began to change with the establishment of a Cargo Development Directorate within FAAN. Created in December 2024 by the Minister of Aviation and Aerospace Development, Festus Keyamo, the directorate was designed to reposition Nigeria’s air freight ecosystem as a driver of economic diversification.
Officials say the move reflects recognition that Nigeria’s non-oil export ambitions cannot succeed without robust logistics infrastructure.
Closing the Logistics Gap
Despite being one of Africa’s largest producers of agricultural commodities, Nigeria has struggled to translate production strength into export dominance. A significant proportion of harvests is lost to spoilage before reaching airports, largely due to inadequate storage, weak aggregation systems, and limited cold-chain capacity.
Cargo operations have also been slowed by bureaucratic inefficiencies at inspection points, customs clearance, and cargo handling terminals.
To address these constraints, FAAN has begun upgrading facilities and streamlining processes under the leadership of Director of Cargo Development & Services, Lekan Thomas.
New Cargo Infrastructure Emerges
A major milestone was recorded in May 2025 with the commissioning of a dedicated domestic cargo terminal at the General Aviation Terminal, Lagos. The facility is intended to ease congestion, accelerate cargo processing, and enhance connectivity for agricultural exports.
Authorities plan to replicate similar cargo terminals in Abuja and Kano, positioning Lagos as a central logistics hub while decentralising freight operations nationwide.
According to FAAN, modern cargo terminals are expected to:
- Reduce clearance delays
- Improve cargo handling efficiency
- Strengthen cold-chain logistics
- Attract domestic and international freight operators
Stakeholder Coordination Takes Centre Stage
Recognising that cargo efficiency is determined largely on the ground, the directorate has intensified engagement with supply-chain actors, including freight forwarders, ground handlers, cooperatives, and the Nigeria Customs Service.
Industry meetings have focused on dismantling institutional silos and reducing friction across export procedures.
Experts argue that digital integration remains critical. Calls have intensified for:
- Single-window cargo clearance systems
- Modern cargo villages
- Integrated cold-chain solutions
Revenue Reforms and Industry Pushback
Beyond infrastructure, FAAN has revived revenue reforms aimed at improving financial sustainability. After a 15-year hiatus, the authority resumed direct collection of cargo-related charges at the Murtala Muhammed International Airport cargo terminal.
Officials say the move is intended to plug leakages, enhance transparency, and align revenue with operational costs.
However, controversy erupted following a proposed tariff increase from N7 to N25 per kilogram. Industry protests forced negotiations, resulting in a compromise rate of N15 per kg.
While FAAN maintains that tariff adjustments are necessary for improved services, critics warn that higher charges could erode Nigeria’s competitiveness in global markets.
Air Cargo Corridor and Broader Policy Goals
Complementing the reforms, the Federal Government recently unveiled an intra-African air cargo corridor offering discounted freight rates across selected African routes. The initiative is aimed at lowering logistics costs and boosting exporter access within the continent.
The cargo reforms align with Nigeria’s broader economic strategy to reduce reliance on oil revenues and build resilience through non-oil exports.
Experts Weigh In
Aviation expert Alex Nwuba views the reforms as part of a calculated plan to elevate Nigeria’s cargo ranking in Africa.
“Nigeria currently ranks fourth in air cargo movement on the continent. The ambition is to move to number one,” he said.
According to Nwuba, the reforms stem from recommendations by an Aviacargo Committee established to diagnose systemic inefficiencies.
“The committee identified fractured airport operations, slow export processes, and poor inter-agency coordination. The Cargo Directorate was created as the driver of that repositioning,” he explained.
He emphasised that cargo reforms must address losses occurring between farms and airports.
“Nearly 80 per cent of agricultural produce is lost before reaching export points. Without aggregation centres and cold-chain infrastructure, Nigeria cannot maximise cargo potential.”
Nwuba added that increased cargo throughput could significantly improve airport revenue and sustainability.
Scepticism Over Data and Spending
In contrast, aviation security expert John Ojikutu expressed reservations, questioning whether cargo expansion efforts are supported by credible traffic statistics.
“In the last decade, Nigeria’s cargo volume has hovered around 200,000 tonnes annually, rarely exceeding 300,000. Any reform must show consistent multi-year growth,” he argued.
Ojikutu warned against heavy capital expenditure without verifiable demand indicators, also criticising broader airport renovation and runway spending.
“We must avoid creating avenues for spending without demonstrable returns. Cargo development should be driven by transparent data.”
He advocated concessioning cargo terminals to private operators to improve efficiency and reduce government financial burdens.
“Concessionaires can deliver better performance while guaranteeing revenue, without the overhead of staffing and bureaucracy.”
Balancing Optimism and Reality
Despite divergent views, stakeholders broadly agree that logistics reform is essential if Nigeria is to unlock its agricultural export potential.
Persistent challenges remain:
- Exchange rate instability
- Rising freight costs
- Limited cargo aircraft availability
- Imbalance between imports and exports
Recent reports indicate that air cargo exports declined in 2025 due to escalating operational costs, underscoring the need for complementary macroeconomic stability.
The Road Ahead
Nigeria’s farms are productive. Global demand exists. The missing link has been logistics.
With new cargo terminals, inter-agency coordination, digital ambitions, and regulatory focus, the country is laying the groundwork for a more competitive non-oil export ecosystem.
Whether the reforms translate into sustained cargo growth — and tangible benefits for farmers and exporters — will depend on execution, affordability, and data-driven policy adjustments.
For now, the air cargo engine is stirring. The industry is watching. And Nigeria’s diversification agenda may finally be gaining altitude.
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