By Steve Agbota
The Sea Empowerment and Research Centre (SEREC) has called on the Ministry of Aviation and Aerospace Development, on behalf of the Federal Government, to treat air cargo reform as a strategic national economic priority, not merely an administrative or revenue issue.
SEREC stated this while presenting a ministerial brief to highlight critical structural, governance and competitiveness issues within Nigeria’s aviation air cargo ecosystem, brought to the fore by recent tariff adjustment disputes between the Federal Airports Authority of Nigeria (FAAN) and freight forwarders/air cargo agents.
The ministerial brief, which was made available to Daily Sun by the Head of Research of SEREC, Eugene Nweke, said that while SEREC acknowledges the constructive engagement that produced a temporary understanding on revised cargo tariffs, the underlying issues extend far beyond pricing.
He said they touch on Nigeria’s readiness to compete under the African Continental Free Trade Area (AfCFTA), the efficiency of national logistics infrastructure, and the country’s long-term trade and export ambitions.
On why air cargo matters to Nigeria now, he said that in the evolving AfCFTA environment, air cargo plays a decisive role in facilitating high-value and time-sensitive intra-African trade, supporting non-oil exports such as agro-produce, pharmaceuticals and manufactured goods, enabling Nigeria’s participation in regional value chains, and enhancing national competitiveness relative to peer African aviation hubs.
“Globally, air cargo is increasingly recognised as critical trade infrastructure, not a subsidiary aviation function. Countries that succeed under AfCFTA will be those that minimise logistics costs, ensure predictability, and operate trusted, secure supply chains.
“Nigeria’s air cargo system, however, continues to exhibit fragmented governance, inconsistent policy implementation, weak linkage between tariffs and service performance, and underutilisation of internationally recognised regulated agent regimes,” he added.
According to him, these gaps risk positioning Nigeria as a high-cost, low-efficiency cargo origin, undermining government efforts at export diversification and trade expansion.
He noted that the recent FAAN–freight forwarder dispute over cargo tariff increments is best understood as a symptom of deeper systemic challenges.
“These challenges include: absence of a structured cargo economic framework, reactive stakeholder engagement, and cost increases without corresponding efficiency gains,” he said.
He explained that cargo tariffs have historically been adjusted without a formal, transparent, multi-stakeholder economic model anchored in cost-to-serve analysis, trade elasticity considerations and export competitiveness impact assessments.
“Consultations tend to occur after policy announcements, rather than as part of an institutionalised pre-decision framework consistent with international best practice and ICAO guidance. Tariff increments have not been sufficiently tied to measurable service improvements, cargo processing speed, infrastructure upgrades and digitalisation of cargo operations. This disconnect weakens stakeholder confidence and results in resistance that could otherwise be avoided,” he said.
He noted that under AfCFTA, excessive airport and cargo-related charges effectively function as non-tariff barriers, discouraging trade flows and eroding price competitiveness.
He said key risks include Nigerian exports becoming uncompetitive against cargo routed through Addis Ababa, Nairobi, Kigali or Johannesburg; diversion of regional cargo volumes away from Nigerian airports; and reduced utilisation of Nigeria’s aviation infrastructure despite growing continental trade demand.
He added that if unresolved, these risks could negate broader government investments in export promotion, industrialisation and logistics reforms.
“SEREC respectfully submits that Nigeria cannot afford to manage its air cargo sector as a revenue-first administrative space in the AfCFTA era. Air cargo policy must evolve into a strategic enabler of trade, competitiveness and economic growth.
“The Ministry of Aviation and Aerospace Development, acting on behalf of the Federal Government, is uniquely positioned to drive holistic air cargo reform, restore stakeholder confidence, align aviation policy with national trade and AfCFTA objectives, and decisions taken now will determine whether Nigeria emerges as a leading AfCFTA air cargo hub—or cedes that advantage to competing African economies,” he said.
