Air Cargo Reforms Signal Big Push For Nigeria Non-Oil Exports

FAAN Cargo Directorate Lead Infrastructure Upgrade, Revenue Reforms To Boost Agro-Exports

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Federal Airports Authority of Nigeria (FAAN)
Federal Airports Authority of Nigeria (FAAN)

Nigeria don step up effort to grow non-oil exports as Federal Airports Authority of Nigeria (FAAN) roll out major air cargo reforms to improve infrastructure, logistics and revenue system.

For years, aviation sector focus mainly on passenger movement, while cargo operations lag behind. But now, government don create dedicated Cargo Development Directorate inside FAAN to drive export growth and modernise freight operations.

Di Directorate, wey Minister of Aviation and Aerospace Development, Festus Keyamo, establish for December 2024, aim to reposition Nigeria as strong agro-export player for global market.

New Cargo Terminals, Expansion Plan

One of di key milestones na commissioning of new cargo terminal for General Aviation Terminal, Lagos. Di facility expected to reduce bottlenecks and improve handling of agricultural exports like mango, pepper and vegetables.

FAAN plan to replicate di cargo terminal model for Abuja and Kano to expand modern cargo processing nationwide. Director of Cargo Development & Services, Lekan Thomas, dey coordinate operational reforms to make export process smoother.

Revenue Reform And Tariff Debate

After 15 years break, FAAN resume direct collection of cargo revenue for Murtala Muhammed International Airport cargo terminal to block leakages and improve accountability.

However, planned increase of cargo charge from N7 to N25 per kilogram spark industry protest. After negotiation, dem settle for N15 per kg. Authorities say tariff adjustment necessary to sustain operations, but critics warn say high charges fit reduce competitiveness of Nigerian exports.

Experts Share Mixed Views

Aviation expert Alex Nwuba say Nigeria currently rank fourth in Africa for air cargo movement and believe reforms fit move di country to number one position. According to am, creation of Cargo Directorate na strategic step to reposition Nigeria export capacity.

But another aviation expert, John Ojikutu, question whether cargo traffic data justify heavy spending. He argue say cargo volume over di past decade remain below 300,000 tonnes annually and insist say government must show clear statistics before committing more funds.

He also suggest concession of cargo terminals to private operators to improve efficiency and revenue generation.

Bigger Picture For Non-Oil Economy

Di cargo reforms align with Federal Government goal to diversify economy away from oil and strengthen non-oil exports. With improved cold-chain systems, digital clearance processes and stakeholder collaboration, officials believe Nigeria fit reduce spoilage, lower logistics cost and access more African and global markets.

Even though challenges like exchange rate instability and high freight costs still dey, observers say di new direction signal serious attempt to turn Nigeria into regional agro-export hub.

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