Air cargo export : $6trillion opportunity beckons on Nigeria

 Air cargo export : $6trillion opportunity beckons on Nigeria 

The Federal Government is not leaving anything to chance to improve revenues from non- oil exports as it consolidates strategies and interventions that will position Nigeria as the leading player in aviation cargo export in the next five years in the global value  chain estimated to be over $6trillion.

With air cargo, including export of agricultural produce from Nigeria accounting for approximately 35 percent of global trade in last year according to data released by the International Air Transport Association (IATA), the Federal Government is seeking more participation in this value chain by putting place Action Plans / Interventions that will bridge the turnaround time for cargo facilitation at Nigerian airports, redress financial gaps in the building and maintaining of modern cargo infrastructure/facilities,

 stimulate the interest of local airlines in domestic cargo business , address challenges of standardisation / certification of cargo items, especially farm produce and other interventions.

Data from the airport authorities indicate that terminals in  Lagos,  Abuja,  Kano,  Owerri , Port Harcourt , Calabar,  Enugu

, Makurdi, Minna , Jos , Ilorin , Yola and  Kebbi are designated for cargo / passenger operations.

Besides these cargo terminals, some State Governments including: Anambra, Ebonyi,  Ogun, Ekiti, Yobe and others have invested huge funds to drive the cargo export value chain.

According to statistics from the global airports regulator : Airports Council International (ACI), Nigeria's Murtala Muhammed International Airport (MMIA), Lagos ranks fifth in Africa with  204, 649 tonnes of cargo air freighted in the last few years.

Ethiopia's  Addis Ababa Bole International Airport, ranks fourth with 226, 417 tonnes of cargo.South Africa's  Oliver Reginald International Airport ranks third with 304, 018 .

Egypt's Cairo International Airport,  ranks second with 333,536 tonnes, 

 Kenya's Jomo Kenyatta International Airport,  with 363, 204 tonnes of cargo.

Confirming the development, Managing Director of the Federal Airports Authority of Nigeria (FAAN), Mr Kabir Yusuf Mohammed  said the government is using intentional  infrastructure- Aviation Cargo Village at the Lagos Airport , other international airports and cargo facilities to drive the promotion of agro- produce export for the country.

Speaking at the sidelines of the 3rd Edition of the Chinet Avia-Cargo Conference in Lagos, Mohammed  said  the Federal Government is committed to drive  Nigeria's participation in the  money spinning business of air cargo export by creating airport facilities that combines speed and efficiency in delivery.

Providing data on the volume of air cargo , Mohammed said in the first half of 2021, a total of 16.7

metric tonnes of cargo was exported through our airports. He  said a total of 17.7 metric tonnes were exported in the first half of  2022, resulting in  6.2 percent  increase from 2021

export figure.

Mohammed said : " But, in same period in 2023, a total of about 12.9 metric tonnes was airlifted leading to a further drop by 29.5 per cent."

But, IATA report blamed the poor performance due to volatility resulting from supply chain constraints and

evolving economic conditions.

Experts say Nigeria could increase throw put in the air cargo value chain if concerned authorities  address lack of adequate insurance coverage in the cargo facilitation.

Besides, they say authorities, must address issues bordering on  adequate standardization and certification of

cargo items, particularly farm produce, sub standard packaging , processing and traceability.

Mohammed said : "  Government needs the partnership of the private sector to really provide the necessary

infrastructure that will make these airports truly cargo facilitating airports. With proper partnership, we can leverage on the land mass available in our airports, and establish world-class cargo facilities to further enhance cargo facilitations. Fresh organic produce like cashew, avocado, exotic flowers, yams, must be well packaged, processed and certified to meet the destination standards."

Also speaking, Managing Director / Chief Executive Officer, JOHDIC Resources Limited, Mr John Ekeanya said the logistic industry has a huge role to play in the participation of Nigeria in the air cargo export value chain.

 Growth  in the logistics sector, he said is expected to continue in the coming years, with a projected compound annual growth rate (CAGR) of 5.5 per cent  between 2020 and 2025.

Such growth, he maintained will be  driven by factors including  improving infrastructure, increasing demand for e-commerce, and growing need for cold chain logistics to support the pharmaceutical and food .

On how to stimulate the growth of air cargo export, Ekeanya said : "  There is an urgent need by the Federal Government to equipping special-purpose cargo airport all over the country with the appropriate storage facilities and processing.Build  silos, warehouses for agro-products and manufactured goods.

"Have  enough trucks to move goods and produce to the nearest warehouses for evacuation to the cargo airport. There should be rapid improvement on the road infrastructure.

" The Government must address the menace of insecurity and banditry, secure  the farms for farmers as well as improve  the railway system. The government must ensure  consistency in availability of goods and produce in order to engage meaningfully, trucks, cargo airlines as a profitable venture."

Ekeanya, added that logistics bottleneck remains a major factor hindering successful export of local produce.

Ekeanya, however, highlighted impediments affecting effective logistics to include insecurity, banditry, infrastructural deficits, multiple taxation, high tariff, poor government policies on trade, poor incentives for exporters, inconsistent availability of farm produce and other exportable goods, poor storage facilities such as silos, cold rooms, among others.

Also speaking, Director of Operations, Omni Blu, Captain Kenneth Wemambo said the rejection of Nigeria’s agro-products by the international community was due to a myriad of reasons.