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FAAN’s New Charges May Disrupt Airport Cargo Operations – Freight Forwarders

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Freight forwarders have warned that a recent increase in charges by the Federal Airports Authority of Nigeria (FAAN), introduced without stakeholder consultation, could disrupt cargo operations nationwide and undermine government revenue.

The warning was issued on Tuesday in Lagos at a joint press briefing by major freight forwarding associations, 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.

Speaking for the groups, Dr. Segun Musa, Deputy National President of NAGAFF (Air and Logistics), said the dispute dates back to a 2010 agreement with FAAN over a seven-naira-per-kilogram levy on air cargo.

He explained that FAAN had initially imposed a two-naira charge, which freight forwarders challenged on the grounds that FAAN had concessioned cargo handling to firms such as NAHCO and SAHCOL. Following negotiations, both sides agreed on a seven-naira levy tied to the allocation of land for a cargo village.

“The seven naira is attached to the land. It is like rent,” Musa said, adding that FAAN has no right to unilaterally impose new charges without dialogue.

He claimed FAAN collected over one billion naira from the levy in 2010 alone, and that cumulative earnings since then far exceed the value of the land allocated.

According to the associations, the latest crisis was triggered by FAAN’s decision to raise charges without consultation, followed by letters threatening demolition of their secretariats. They described the move as coercive and insisted they were not opposed to a review, but only through engagement.

Musa said FAAN should relate with its concessionaires, similar to how the Nigerian Ports Authority deals with terminal operators, rather than impose charges directly on freight forwarders.

Chairman of ANLCA Airport Chapter, Mr. Tope Akindele, said the standoff had already slowed cargo activities, with many operators staying away from work.

He noted that a concessionaire previously generating about one billion naira weekly is now making roughly half, warning that prolonged disruption would further reduce government revenue.

“We want government revenue to continue. We are ready to pay, but let us dialogue so work can resume,” Akindele said.

He added that globally, increments in charges are usually benchmarked at about 25 per cent, a level the associations said they were willing to consider.

Other speakers warned against multiple layers of charges on the same cargo, noting that airlines and cargo handlers already collect various per-kilogram fees linked to FAAN.

According to the group of freight forwarders, cumulative charges could reach as high as 30 naira per kilogram in some cases, arguing that additional levies amount to double or triple taxation and weaken Nigeria’s air cargo competitiveness.

The associations also recalled that the original legal dispute over the levy was set aside in favour of mutual understanding, but warned that FAAN’s unilateral actions could push the matter back to court.

They called on the Minister of Aviation to intervene and facilitate dialogue, stressing that they were not protesting but seeking engagement.

Meanwhile, they warned that any shutdown of airport cargo operations would hurt the wider economy, describing it as a lose-lose outcome for both operators and government.

The groups said members had been advised to continue working and avoid escalation, assuring that once talks begin, full operations would resume under the existing status quo.

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