Tariffs Increase Threaten Air Freight of N220bn Agro Exports from Nigeria

• Nigerian agro produce shunned in international market over high cost

Chinedu Eze

As Federal Airports Authority of Nigeria (FAAN) kicked-off implementation of cargo levy increase from N7 per kilo to N25 per kilo yesterday, exporters said it would further hike the cost of agricultural produce from Nigeria, which were already being rejected in the international market due to high cost.

In 2024, Nigeria exported by air farm produce, known as perishables, worth about N220 billion, according to the National Bureau of Statistics (NBS). But the volume reduced because of the high cost of export, which also pushed up costs in the glossary and other shops abroad.

Exporters said FAAN tariff increase had added to other levies charged by airlines, handling companies, and other government agencies at the airports. They said these had driven up the cost of Nigerian perishables and made them uncompetitive, as similar produce come from other countries at cheaper prices.

An exporter at the Cargo Terminal of the Murtala Muhammed International Airport, Lagos (MMIA), who desired anonymity, told THISDAY by telephone yesterday that DHL, a renowned freighting and courier company, Air France, other airlines freighting cargo from Nigeria, handling companies, Nigeria Customs Service, Quarantine Service and other security operatives increased levies at intervals, with all adding to the high cost of freighting perishables out of Nigeria.

The exporter stated, “We are no more competitive. Our banana, crayfish, palm oil, pepper, vegetables are organic but the prices of the produce have increased, which made them uncompetitive. Recently the levies increased the price of export of the produce from $3 per kilo to $14 per kilo.

“So, we are pricing ourselves out of the market. The price is too much for the shipping. The cost of our produce abroad is higher than that of other countries.

“If FAAN increases tariff, it is the importer or exporter that will pay the price. The clearing agent is not suffering. FAAN, handling companies and airlines make arguments that they want to generate more revenue, but their action has ripple effect on the price of the produce exported.

“So, the exporter, for example, will reduce his exports from 10 tons to 5 tons so that he will be able to pay for them. This reduces the volume of what Nigeria exports to the international market.”

Meanwhile, cargo agents at the Lagos airport petitioned Inspector General of Police (IGP), Comptroller General of the Nigeria Customs Service (NCS), Director-General Civil Aviation (DGCA), and other relevant security agencies and manufacturers’ associations over a threat by FAAN to demolish their secretariats because of their refusal to accept the new tariff on cargo.

The affected cargo agents – National Association of Government Approved Freight Forwarders (NAGAFF), Association of Nigerian Licensed Customs Agents (ANLCA), Africa Association of Professional Freight Forwarders and Logistics (APFFLON), and National Association of Freight Forwarders and Consolidators (NAFFAC), said the planned demolition was in flagrant violation of the agreement the bodies had with FAAN on the construction of their various secretariats about 15 years ago.

The agents insisted that the threat by FAAN was linked to the agency’s implementation of a new tariff regime, which had sparked intense debate and resistance from the freight forwarding agents.

The freight forwarders described the tariff increase as unilateral and an act of “institutional blackmail”, alleging that FAAN failed to consult critical stakeholders before effecting the changes.

They said the increase would lead to higher costs for importers and exporters and ultimately affect the economy.