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FAAN Says Cargo Tariff Increase Will Help Terminal Maintenance

Obah Sylva by Obah Sylva
November 14, 2024
in News
Reading Time: 2 mins read
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FAAN Says Cargo Tariff Increase Will Help Terminal Maintenance
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The Federal Airports Authority of Nigeria (FAAN) has announced an increase in cargo tariffs, asserting that the hike is essential for the maintenance and upgrade of airport cargo terminals across the country. This move, according to FAAN in recent statements, aims to bolster the infrastructure at Nigeria’s airports to enhance cargo handling capabilities.

According to posts on X (formerly known as Twitter), FAAN’s decision to adjust cargo tariffs comes after evaluations showing that current charges were insufficient to meet the growing demands for cargo services and the necessary maintenance of cargo facilities. The authority has emphasized that these increases will directly contribute to the betterment of cargo terminal operations, which are crucial for Nigeria’s import and export sectors.

The cargo handling fee adjustments are part of a broader strategy to improve service delivery at Nigerian airports. FAAN officials have highlighted that the revenue generated will be channeled into; Enhancing the physical infrastructure of cargo terminals, upgrading equipment to handle increased volumes efficiently and improving security measures to ensure the safety of goods.

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The announcement has sparked a range of reactions from stakeholders within the aviation and cargo sectors. While some cargo agents and businesses have expressed concerns over the potential increase in operational costs, others see it as a necessary step towards sustainable development in airport logistics. The increase in tariffs is expected to be implemented in phases, allowing businesses to adjust their logistics planning accordingly.

Read also: Why prices of food ‘ll keep rising – PFAN

Public discourse on platforms like X shows a divided opinion. On one hand, there’s an acknowledgment of the need for infrastructure improvement to compete on a global scale. On the other, there’s apprehension about how these costs might trickle down to consumers or affect Nigeria’s competitive edge in international trade.

Cargo agents at various airports have previously called for a downward review of charges due to high costs impacting cargo volumes. However, FAAN’s latest move suggests a strategic shift towards prioritizing infrastructure over immediate cost relief for cargo handlers.

FAAN has stated that while the tariff increase might seem steep, the long-term benefits include not only better service but also potentially attracting more cargo traffic due to enhanced facilities. They argue that this will stimulate economic growth by improving Nigeria’s logistics capabilities, which are pivotal for trade.

The authority is also open to stakeholder engagement to discuss the implementation process and possibly provide exemptions or phased increases for small to medium enterprises heavily impacted by these changes. This approach indicates an intention to balance operational costs with economic support for local businesses.

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