FAAN shelves new cargo tariff amid stiff resistance from freight forwarders — APFFLON

The National President of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), Otunba Frank Ogunojemite, has disclosed that the Federal Airports Authority of Nigeria (FAAN) has suspended the newly introduced cargo tariff at Nigerian airports following widespread opposition from freight forwarders.

 

FAAN had, in a letter dated January 27, announced a review of its cargo handling charges, raising the rate from ₦7 per kilogram to ₦25 per kilogram — a 257 per cent increase — with effect from February, reports The Lens.

 

The announcement immediately triggered protests from industry operators, who described the hike as excessive and counterproductive to trade facilitation.

 

In response, freight forwarding associations, under the umbrella of APFFLON, wrote petitions to key security and regulatory agencies, including the Nigeria Customs Service, Immigration Service, and the Department of State Services (DSS), objecting to the implementation of the new tariff.

 

Ogunojemite said information from APFFLON members operating at the Murtala Muhammed International Airport indicated that FAAN had suspended the revised charges.

 

“At the moment, I was told that it has been suspended. None of our members has paid the new charge,” he said. However, Ogunojemite noted that despite the reported suspension, FAAN was yet to issue any official communication to that effect or invite stakeholders for dialogue.

 

“We are expecting an official communication from them (FAAN) in regards to that, and we are also expecting an official invitation for a meeting. This is not just about suspending the increment; it is about the justification for the increment, ease of doing business, and trade facilitation,” he added.

 

Ogunojemite also condemned what he described as FAAN’s alleged attempt to intimidate freight forwarding associations with eviction notices following their opposition to the tariff hike.

 

According to him, the issue of revised tariffs first emerged last year, but stakeholders had insisted on engagement and consultation before any implementation.

 

“This issue came up last year and we stood against it and requested them to talk to us, but now they forcibly wanted to enforce the increment, and we said no. You need to engage stakeholders before embarking on any increment,” he said.

 

He argued that freight forwarders were resisting the increase not for personal gain, but in the national interest.

 

“We represent the citizens of this country and we know where the shoe pinches. This increment is contrary to the Federal Government’s agenda to reduce all port costs by 35 per cent,” Ogunojemite stated.

 

On the reported eviction notice, he said: “Having spoken up against the increment, they are now trying to threaten us with eviction from the land we occupy. We are not bothered. What matters is pushing against the increment to a logical conclusion. As I speak to you, they have not created an enabling environment for dialogue.”

 

APFFLON further questioned the rationale behind the tariff increase, insisting that FAAN already receives government subvention and has multiple revenue streams.

 

“With the subvention and other sources of revenue available to FAAN, there is no justification for increasing cargo charges,” Ogunojemite argued.

 

In a press statement issued by the association, APFFLON warned that the new tariff would have far-reaching economic consequences.

 

“This increment comes against the advice and objections of key industry stakeholders and will significantly escalate the cost of air cargo operations, discourage exports, increase import costs, and place additional pressure on Nigerian businesses and consumers,” the statement read.

 

The association also criticised the absence of corresponding infrastructure upgrades or service improvements to justify the sharp increase, especially at a time when government policy is focused on reducing the cost of doing business in Nigeria.

 

APFFLON therefore called on FAAN and the Federal Government to urgently review and suspend the tariff in the interest of trade facilitation, economic stability, and national competitiveness.

 

Meanwhile, FAAN has maintained that it is proceeding with the revised charges. The agency’s spokesman, Henry Agbebire, dismissed claims of suspension, insisting that airport operations remained smooth.

 

“Aside from a few attempts to create a scene, operations were smooth today, and this is not something FAAN is considering reversing. The agents are complying, and we are forging ahead with the new tariff,” Agbebire said.

 

As the standoff continues, industry watchers say the outcome of the dispute could have significant implications for air cargo costs, exports, and Nigeria’s broader trade competitiveness.