The Federal Airports Authority of Nigeria (FAAN) has struck a compromise with cargo handling operators at Lagos’s Murtala Muhammed International Airport, settling on a new cargo port charge of N15 per kilogram following tense negotiations that saw warehouses shuttered and operations disrupted.
The agreement, announced on Tuesday by FAAN’s Director of Public Affairs and Consumer Protection, Henry Agbebire, ends weeks of industrial action that paralyzed cargo operations at Nigeria’s busiest aviation hub. The new rate represents a middle ground between FAAN’s controversial N20 per kilogram proposal and the N7 charge that had stood unchanged since 2008—a near two-decade freeze that left critical infrastructure severely underfunded.
The controversy erupted on January 30 when FAAN announced plans to nearly triple the cargo port charge to N20 per kilogram. The proposed hike, while the first adjustment in 18 years, triggered immediate pushback from Customs Licensed Cargo Agents, who argued the increase was too drastic and poorly timed.
Industry operators were divided. Some acknowledged the urgent need for infrastructure investment, pointing to deteriorating facilities, chronic congestion, and operational bottlenecks that have plagued MMIA’s cargo operations for years. Others condemned the steep jump as economically untenable, particularly for businesses already grappling with naira devaluation, high operating costs, and broader economic headwinds.
The dispute quickly escalated beyond rhetoric. Cargo agents locked warehouses and withheld inbound shipments, effectively bringing cargo processing to a standstill. Operators particularly objected to applying the new tariff to consignments already billed under the old rate, viewing it as an unfair retroactive imposition.
The breakthrough came during a stakeholders’ meeting held on Monday at MMIA’s Terminal 2 Conference Room, chaired by FAAN’s Director of Cargo Development and Services, Lekan Thomas. After what FAAN described as “constructive deliberations,” both parties agreed to the N15 per kilogram rate—a 114% increase from the previous charge, but a 25% reduction from FAAN’s initial proposal.
“The agreement reflects constructive dialogue and a shared commitment by all parties to improve cargo operations and infrastructure at MMIA,” FAAN stated, emphasizing that the revised charge balances revenue needs with operators’ cost concerns.
The settlement is expected to reopen stalled warehouses, restore normal cargo flows, and ease tensions across the air cargo value chain. For FAAN, the compromise preserves much-needed revenue for infrastructure upgrades while avoiding further disruption. For cargo agents, it represents a more manageable cost structure than the originally proposed rate.
FAAN has pledged that revenue from the tariff adjustment will fund a comprehensive overhaul of MMIA’s cargo infrastructure. In an exclusive interview with Nairametrics, the Authority outlined an ambitious investment program tied to the new tariff.
Priority projects include rehabilitation of aprons and access roads, enhanced security systems, upgraded airfield lighting, and expanded digital infrastructure. Two flagship initiatives—a Cargo Community System (CCS) and a Truck Call-Up System—are slated for rollout within 12 and nine months, respectively, with Lagos serving as the primary pilot site and Abuja as a secondary location.
FAAN projects these investments will deliver measurable improvements: at least a 30% reduction in truck turnaround time within the first year and up to a 50% reduction in cargo dwell time within three years. The Authority has committed to channeling at least 70% of incremental tariff revenue directly into cargo infrastructure.
To ensure accountability, FAAN announced the establishment of a Cargo Tariff Oversight Committee with stakeholder representation, performance tracking through key performance indicators, and biannual public reporting on progress.
The tariff dispute highlights the chronic underinvestment that has plagued Nigerian aviation infrastructure for decades. The N7 per kilogram charge, in place since 2008, failed to keep pace with inflation, operational costs, or the infrastructure demands of a growing cargo sector. By 2026, that rate had become economically unsustainable for maintaining, let alone modernizing, MMIA’s facilities.
The compromise reflects a recognition on both sides that the status quo was untenable. For FAAN, aging infrastructure and operational inefficiencies threaten the airport’s competitiveness as a regional cargo hub. For operators, delays, congestion, and poor facilities translate directly into lost revenue and customer dissatisfaction.
Whether the N15 rate proves sufficient to fund FAAN’s ambitious infrastructure agenda—and whether those improvements materialize on schedule—remains to be seen. The true test will come in the months ahead, as stakeholders monitor whether promises translate into tangible operational improvements at Nigeria’s premier gateway for air cargo.
WHAT YOU SHOULD KNOW
After nearly two decades without adjustment, Nigeria’s main airport cargo charge has jumped from N7 to N15 per kilogram following intense negotiations between FAAN and cargo operators.
The compromise—down from FAAN’s initial N20 proposal—ends warehouse shutdowns and industrial action that paralyzed operations at Lagos’s Murtala Muhammed International Airport.
FAAN has committed to investing at least 70% of the additional revenue into long-overdue infrastructure upgrades, including digital cargo systems and improved facilities, with promised reductions in processing times of 30-50% within three years.
