The Federal Airports Authority of Nigeria (FAAN) is set to implement its approved cargo tariff review from 2 February 2026, after completing comprehensive operational reforms that addressed persistent revenue leakages. The Authority had deliberately delayed the increase to ensure that it would generate meaningful income rather than being undermined by systemic inefficiencies that had long plagued cargo operations.
An operational report from FAAN’s Cargo Development and Services Directorate shows that reforms across major cargo terminals have already delivered measurable results. Revenue assurance has improved markedly, particularly at the Nigerian Aviation Handling Company (NAHCO) Plc and Skyway Aviation Handling Company (SAHCO) warehouses, where careful monitoring and stronger oversight of cargo handling processes have prevented revenue losses. The tariff review, therefore, is not merely a pricing exercise but a reflection of FAAN’s strengthened operational integrity.
Central to the reforms was the relocation of operational staff and revenue-collection desks into cargo warehouses, enabling closer supervision of activities. In addition, unaccompanied luggage, which previously contributed to revenue gaps, is now subject to more stringent tracking. These steps have effectively closed the major leakages that once eroded FAAN’s income from cargo operations.
Tariff Review Imminent
A senior FAAN official emphasised the importance of timing the tariff review correctly. “Implementing tariff changes without first correcting operational weaknesses would have rewarded inefficiencies rather than improving revenue performance. With our processes now corrected, the adjustments will translate directly into sustainable gains,” the official said.
The report highlights a remarkable paradox: although cargo throughput declined in 2025 compared to 2024, revenue generation and collection efficiency both improved. This outcome underscores that sealing operational gaps, rather than simply increasing cargo volume, is now the key driver of financial performance across FAAN terminals.
To further consolidate these gains, FAAN is introducing a courier revenue optimisation framework. This initiative will replace the previous total-shipment-weight system with a per-kilogram charging model for courier operators. The new framework is designed to close loopholes in the cargo revenue chain, ensuring that every kilogram handled contributes fairly to FAAN’s earnings, reinforcing the rationale behind the tariff review.
Collaboration with stakeholders in passenger terminals complements these efforts. FAAN is working closely with airlines, ground handling companies, licensed customs agents, and the Nigeria Customs Service (NCS) to tackle revenue gaps arising from frequent-flyer baggage protocols. In addition, access-control measures across terminals have been tightened, yielding tangible improvements in both operational compliance and revenue collection.
Infrastructure development forms another critical pillar of FAAN’s strategy. Cargo facilities at the General Aviation Terminal (GAT) in Lagos are undergoing rehabilitation, while a structured development roadmap is underway at Abuja airport. The Authority is also accelerating integration with the National Single Window (NSW) platform, which is expected to address long-standing inefficiencies and streamline cargo processes further, creating a stronger foundation for the tariff review.
FAAN continues to align its operations with international best practices, maintaining active engagement with the Nigeria Civil Aviation Authority (NCAA) and the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN). These collaborations ensure compliance and reinforce the Authority’s commitment to transparent, efficient, and accountable cargo operations.
With systemic inefficiencies largely addressed, FAAN is now positioned to implement the tariff review confidently, demonstrating a deliberate, responsible approach to revenue management. The Authority reaffirmed its dedication to continuous improvement and collaboration with stakeholders, ensuring that Nigeria’s air cargo sector remains robust and sustainably profitable.
