FAAN Records Revenue Growth Despite Lower Cargo Throughput Following Operational

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 FAAN Records Revenue Growth Despite Lower Cargo Throughput Following Operational Reforms




The Federal Airports Authority of Nigeria (FAAN) has recorded significant improvements in cargo operational efficiency and revenue performance following strategic reforms implemented by its Cargo Development and Services Directorate.


An operational report released by the Authority shows that recent adjustments to legacy processes are already yielding measurable results, with improved revenue assurance across major cargo terminals.


A key reform highlighted in the report is the relocation of FAAN operational staff and revenue-collection desks back into cargo warehouses. This, alongside enhanced monitoring of unaccompanied luggage, has effectively blocked major revenue leakages that previously affected cargo operations.


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


Despite 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 are underway to consolidate the gains and further strengthen revenue assurance across the cargo value chain.


Among these initiatives is a courier revenue optimization framework, which will introduce a per-kilogram charging model for courier operators in place of the current system based on total shipment weight. The official explained that this approach will eliminate identified loopholes and enhance revenue generation.


FAAN is 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 added that improved access-control measures across FAAN terminals are already delivering tangible benefits to stakeholders. In addition, 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 Authority is 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.


FAAN continues to strengthen regulatory alignment through sustained engagement with regulatory bodies such as the 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.


Following the stabilization of operational processes and the closure of major revenue leakages, FAAN confirmed it is now positioned to implement its approved tariff adjustment, effective 2 February 2026. The tariff increase, initially scheduled for 2025, was deliberately deferred to allow time to address systemic inefficiencies.


According to the official, implementing the tariff adjustment earlier would not have delivered meaningful revenue gains, as a significant portion of earnings would 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.


FAAN reaffirmed its commitment to continuous improvement, transparency, and collaboration with industry stakeholders to strengthen Nigeria’s air-cargo operations and ensure sustainable growth across the aviation sector.


The official concluded that the progress recorded reflects the vision behind the creation of the Cargo Development and Services Directorate by the Honourable Minister, with strong operational support from the Managing Director of FAAN.

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