With new initiatives adopted by the federal government, Nigeria is poised to make a significant impact in the global Air Cargo market, which is projected to reach $310 billion in the near future. These initiatives involve incentivizing state governments to increase their investments in air transportation Infrastructure, with a focus on developing air cargo terminals to serve as hubs for the country. In order to accomplish this goal, the Federal Airports Authority of Nigeria (FAAN) is actively engaged in discussions and forming partnerships with international organizations that specialize in the cultivation of agricultural products and other goods suitable for Export via air, ultimately generating foreign exchange.
The air cargo industry has made significant progress in recent years, with its value chain now surpassing $190 billion. Various states such as Plateau, Ogun, Nassarawa, Anambra, Ebonyi, Kano, and Lagos are being considered as potential locations for air cargo hubs. The African Development Bank (AfDB) and other global financial organizations are supporting the development of a quality assurance and testing center in Sagamu, Ogun State. This facility will specifically cater to the needs of the Gateway Agro-Cargo Airport in Ilisan-Remo.
FAAN is engaging in discussions with the Plateau state.
Regulatory approval is currently pending for the hybrid air transport facility to start offering commercial passenger and cargo services. Also, Construction of an air cargo village near Lagos’ Murtala Muhammed International Airport (MMIA) is already underway. In addition, there are talks of establishing cargo processing centres at the designated facilities to guarantee that air freight processing, packaging, labelling, storage, and other necessary procedures meet international standards. The executive management of FAAN is actively engaging in discussions with the Plateau State Government to explore options for transforming the Jos Airport into a prominent cargo hub.
During an interview, Mrs. Olubunmi Kuku, FAAN’s Managing Director, stated that the authority is committed and ready to join forces with the state government to develop a cargo terminal in the Middle Belt state. She emphasized that FAAN’s assistance would expedite Plateau State’s goal of emerging as a top producer and distributor of agricultural goods in Nigeria. Kuku emphasized the need to make use of the state’s agricultural resources without relying on substantial infrastructure improvements.
It is crucial to prioritize the development of strategic air cargo.
Mrs. Kuku recommended focusing on enhancing local infrastructure for cargo transportation and promoting Plateau’s agricultural products. She advised launching marketing campaigns for perishable goods and arranging special market events to draw buyers from different parts of the country. According to her, these initiatives will encourage Investors to explore opportunities in processing, packaging, storage, and distribution of these goods nationwide. Plateau State Governor, Caleb Mutfwang, extended his appreciation to FAAN for their eagerness and assistance in advancing the state’s cargo business goals. He assured ongoing dedication to reaching the objective.
In 2023, the amount of air cargo traffic at Nigerian airports decreased due to the rapid increase in Inflation. Factors such as increased production expenses, reduced buying power, and higher exchange rates have had a notable impact on the volume and operations of cargo airlines in Nigeria. Analysts are concerned that various issues within Nigeria’s air cargo network may leave the country at a disadvantage as it navigates the African Continental Free Trade Area (AfCFTA). It is crucial for Nigeria to prioritize the development of strategic air cargo to tackle long standing issues that have led to the country importing more than it exports.
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State governments should be motivated and assisted in constructing infrastructure to boost their economies, increase internal generated Revenue, and provide employment opportunities. It is crucial to establish multiple export processing zones near international airports to stimulate Economic Growth and trade. It is imperative for both state and federal authorities to create innovative export initiatives to attract investments from multinational corporations. This is especially necessary as the growing presence of cargo airlines presents a promising opportunity for the expansion of the freight industry.
