JUST IN: FAAN will increase cargo port cost after 18 years
The Federal Airports Authority of Nigeria (FAAN) has elevated its cargo port cost to ₦20, marking the primary upward overview of the tariff in almost 20 years.
The adjustment took impact instantly, in line with data obtained from FAAN on Friday.
FAAN mentioned the overview was pushed by inflation, international alternate pressures and the necessity to fund cargo infrastructure.
The authority mentioned the cargo tariff had remained unchanged since 2008 regardless of vital adjustments in Nigeria’s {economic} circumstances.
FAAN mentioned cumulative inflation over the interval stood at about 287 %, making the previous ₦7 cost financially unsustainable.
The authority mentioned information from the Nationwide Bureau of Statistics confirmed {that a} service priced at ₦7 in 2008 ought to now value about ₦27.09 to retain the identical worth.
FAAN mentioned the brand new ₦20 tariff was intentionally set beneath the inflation-adjusted benchmark to restrict the price burden on cargo operators.
“FAAN has elevated tariffs after cautious consideration of present {economic} realities, our tariffs have remained static since 2008,” the authority mentioned.
“Over the previous 18 years, Nigeria has skilled vital inflation (roughly 287%) and a drastic depreciation of the naira,” it added.
“This adjustment is important to maintain and improve crucial airport infrastructure, which has change into financially unsustainable beneath the outdated charges,” FAAN mentioned.
The authority additionally cited international alternate pressures as a significant factor behind the overview.
FAAN mentioned the naira exchanged at about ₦118 to the greenback in 2008 in comparison with roughly ₦1,500 to the greenback presently.
It mentioned working and upkeep prices had risen by greater than 1,000 % in naira phrases as a result of key airport infrastructure elements are imported.
FAAN mentioned the cargo port cost is completely different from charges paid to non-public concessionaires working cargo terminals.
The authority mentioned its cost covers shared infrastructure equivalent to runways, taxiways, perimeter fencing, safety, entry roads and airfield lighting.
FAAN mentioned concessionaire charges apply to cargo dealing with, storage and documentation providers offered inside personal warehouse terminals.
The authority mentioned Nigeria’s cargo costs would stay aggressive inside west Africa even after the overview.
FAAN mentioned cargo costs at Nigerian airports had been beforehand decrease than these at Kotoka worldwide airport in Ghana and Cotonou airport in Benin.
It mentioned the adjustment would align Nigeria’s tariffs extra carefully with regional requirements whereas preserving the nation’s attractiveness to cargo operators.
FAAN mentioned the cargo port cost accounts for under a small fraction of complete air freight prices and is unlikely to considerably have an effect on shopper costs.
The authority mentioned improved infrastructure may cut back delays, improve turnaround occasions and enhance effectivity throughout the cargo worth chain.
FAAN mentioned income from the revised tariff could be reinvested in cargo-related infrastructure.
The authority mentioned deliberate initiatives embrace rehabilitation of aprons and entry roads, improved perimeter safety and upgrades to airfield lighting.
FAAN mentioned it additionally plans to deploy a cargo group system for digital documentation and set up a truck call-up system on the premier cargo terminal.
The authority mentioned home cargo infrastructure growth can be a part of the plan.
FAAN mentioned cargo operators and different stakeholders have been formally knowledgeable of the tariff overview.
The authority mentioned consultations are ongoing and described the adjustment as a strategic funding in constructing a resilient and environment friendly air cargo ecosystem.