FAAN records revenue growth amid low cargo throughput

The Federal Airports Authority of Nigeria (FAAN) says it recorded significant improvements in cargo operational efficiency and revenue performance.

The authority disclosed this in an operational report released on Thursday in Lagos, adding that the improvement was as a result of implemented reforms by its Cargo Development and Services Directorate.

The report showed that recent adjustments to legacy processes were already yielding measurable results, with improved revenue assurance across major cargo terminals.

A key reform highlighted in the report was the relocation of FAAN operational staff and revenue-collection desks, back into cargo warehouses.

It stated that this, alongside enhanced monitoring of unaccompanied luggage, had effectively blocked major revenue leakages that previously affected cargo operations.

The report noted that the positive impact of these reforms was particularly evident in the Nigerian Aviation Handling Company (NAHCO) Plc. and Skyway Aviation Handling Company (SAHCO) cargo warehouses.

It stated that in spite of a decline in cargo throughput in 2025 compared to 2024, FAAN recorded higher revenue generation and significantly improved collection efficiency during the same period.

According to the report, this development clearly demonstrates the effectiveness of the operational reforms.

Speaking on the developments, a senior FAAN official disclosed that several initiatives were underway to consolidate the gains and further strengthen revenue assurance across the cargo value chain.

The official said that among the initiatives was a courier revenue optimisation framework, which would introduce a per-kilogram charging model for courier operators, in place of the current system based on total shipment weight.

According to the official, this approach will eliminate identified loopholes and enhance revenue generation.

The official said that FAAN was also strengthening collaboration within passenger terminals by engaging airlines, ground handling companies, licensed customs agents, and the Nigeria Customs Service (NCS), to address revenue gaps associated with frequent-flyer baggage protocols.

The official said that improved access-control measures across FAAN terminals were already delivering tangible benefits to stakeholders.

He added that cargo infrastructure development and rehabilitation at the General Aviation Terminal (GAT) in Lagos, as well as a structured development roadmap for Abuja airport, form part of the directorate’s ongoing initiatives.

The official said that the authority was also leading efforts to integrate the National Single Window (NSW) platform, intensifying engagement with the implementation team to fast-track deployment.

The integration is expected to resolve long-standing revenue and process inefficiencies within the cargo ecosystem.

He said that FAAN would continue to strengthen regulatory alignment through sustained engagement with regulatory bodies.

“The regulatory bodies include Nigeria Civil Aviation Authority (NCAA) and the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), ensuring that cargo stakeholders adhere to international best practices,” the official said.

On the closure of major revenue leakages, the official said that FAAN was positioned to implement its approved tariff adjustment, effective Feb. 2, 2026.

“The tariff increase, initially scheduled for 2025, was deliberately deferred to allow time to address systemic inefficiencies,” he said.

According to him, implementing the tariff adjustment earlier will not have delivered meaningful revenue gains, as a significant portion of earnings will have continued to be lost through operational gaps.

“With the operational corrections now firmly in place, the Authority is confident that the tariff adjustment will translate directly into improved revenue performance,” the official said.

He said that the progress recorded reflected the vision behind the creation of the Cargo Development and Services Directorate by the Minister, with support from the Managing Director of FAAN.