Market News
Nigeria Requires $5bn To Upgrade Cargo Facilities At Airports - NEW TELEGRAPH
BY Wole Shadare
Efforts to sanitise and streamline Nigeria’s air cargo sector are currently underway, with the Federal Airports Authority of Nigeria (FAAN) spearheading these reforms at the Murtala Muhammed International Airport (MMIA).
Experts estimate that over $5 billion is required to upgrade air cargo facilities across at least 24 airports nationwide. FAAN’s Managing Director, Olubunmi Kuku, is pushing to modernise processes and invest in infrastructure that will elevate Nigeria’s air cargo sector, positioning the country to capture more of the global air cargo market.
This effort is essential in transforming Nigeria’s export landscape and improving the acceptance of Nigerian goods abroad.
In the first quarter of 2024, Nigeria’s air transport sector facilitated the export of goods valued at N55.32 billion, making up just 0.29 per cent of the total export value of N19.167 trillion.
Maritime transport dominated, with 99.25 per cent of exports, while air transport accounted for a larger share of airports, handling goods worth N707.56 billion, or about 5.60 per cent of the total import value of N12.643 trillion.
These figures clearly highlight the need for Nigeria to bolster its air cargo capacity and address the export-import imbalance.
Kuku is keen on reversing this trend by tackling the root causes—outdated airport infrastructure, a shortage of air – craft, and underinvestment in the aviation sector.
However, FAAN is already taking action within its means by investing in critical infrastructure and optimising operations to ensure compliance with international standards.
This includes improving the cargo processing facilities at MMIA and ensuring the handling of both perishable and non-perishable goods meets lobal benchmarks.
A significant step in this effort was the commissioning of Nahcoaviance’s N1 billion Export Processing and Packaging Centre in February 2024.
This pathway tracks exports from registered farms, through licensed handlers, and ensures compliance with stringent regulatory checks by Nigerian Agricultural Quarantine Services (NAQS), NDLEA, and Customs before goods are sent to airlines.
The export pathway includes a registered shipper who aggregates and consolidates products, a regulated agent licensed as KC3, and certified handling companies meeting international standards.
These measures are designed to increase Nigeria’s export acceptance, reduce cargo rejection rates, and streamline operations. These trial runs aim to assess the effectiveness of the Air Cargo Pathway developed by the Roadmap Committee”.
The trials will involve stake holders from across the Air Cargo ecosystem, including key government agencies such as the Nigerian Export Promotion Council (NEPC), NAFDAC, the Standards Organization of Nigeria (SON), Nigerian Agricultural Quarantine Services (NAQS), NDLEA, and Nigerian Customs.
This collaborative effort is designed to ensure smoother, more reliable export processes for Nigerian goods, especially perishables, and improve the overall efficiency of the sector.
Under Kuku’s leadership, the cargo section of Nigeria’s airports is undergoing a major transformation. John Ogbe, Head of the Cargo Department, emphasized that nearly 90% of cargo personnel have been registered, with biometric data collection to follow.
The introduction of a controlled gate system and a twogate entry-exit process will enhance security and reduce unauthorised access, a critical step in sanitising the cargo environment.
“Our aim is to ensure that we know who is accessing the cargo areas and for what purpose. This is part of our strategy to enhance security and accountability,” Ogbe explained.
