FAAN Cargo Tariff Increase: Effective February 2024
- The Federal Airports Authority of Nigeria (FAAN) has implemented new cargo tariffs, ending a nearly two-decade period of unchanged rates, following internal reforms focused on revenue assurance and...
- For approximately twenty years, cargo tariffs at Nigerian airports remained static.The International Air Transport Association (IATA) was consulted alongside other industry groups and stakeholders prior to the implementation...
- The new tariffs were not immediately implemented, with FAAN delaying the increase until internal systems were stabilized and improvements in revenue collection were demonstrated.
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The Federal Airports Authority of Nigeria (FAAN) has implemented new cargo tariffs, ending a nearly two-decade period of unchanged rates, following internal reforms focused on revenue assurance and improved controls. The changes were made after consultation with industry stakeholders, including the International Air Transport Association (IATA).
Cargo Tariff History and Recent Changes
For approximately twenty years, cargo tariffs at Nigerian airports remained static.The International Air Transport Association (IATA) was consulted alongside other industry groups and stakeholders prior to the implementation of the new rates.FAAN stated the tariff rollout is a result of reforms initiated by its Cargo Development and Services Directorate, prioritizing revenue assurance over simply increasing cargo volume.
The new tariffs were not immediately implemented, with FAAN delaying the increase until internal systems were stabilized and improvements in revenue collection were demonstrated.
Revenue Assurance Reforms at FAAN
FAAN implemented several key reforms to improve revenue collection from cargo operations. These included redeploying operational staff and revenue officers back to cargo warehouses and strengthening monitoring of unaccompanied baggage. The Federal Airports Authority of Nigeria (FAAN) aimed to address long-standing revenue leakages through these measures.
These reforms resulted in improved revenue collections in 2025, despite a decrease in overall cargo throughput compared to the previous year, confirming that better controls, rather than increased traffic, were driving the positive performance.
Performance Data from NAHCO and SAHCO
Operational data from cargo terminals operated by Nigerian Aviation Handling Company (NAHCO) and Skyway Aviation Handling Company (SAHCO) demonstrated improved revenue collection in 2025. Despite a reduction in cargo volume, revenue increased, validating FAAN’s strategy of focusing on revenue control before raising tariffs. Specific figures regarding the percentage increase in revenue or the decrease in cargo throughput were not provided in the source material.
Impact of Improved Controls
The observed trend confirmed that enhanced controls, rather than increased cargo traffic, were responsible for the improved financial performance. This finding reinforced FAAN’s decision to postpone the tariff increase until its internal systems were fully operational and effective. The focus on revenue assurance is intended to create a more sustainable and reliable revenue stream for airport operations.