Aviation: Experts Decry Nigeria’s N40bn Domestic Cargo Market

Despite the potential, the Nigerian domestic cargo market estimated to oscillate around N22 billion and N45 billion annually is considered very small occasioned by poor infrastructure.

This was the view of stakeholders, who spoke to Aviation Metric at the just concluded 4th aviation cargo summit in Lagos, christened ‘Chenet’.

They noted that considering the country’s geographical size, it had the potential to grow into a multi-billion dollar market, contributing significantly to Nigeria’s Gross Domestic Product (GDP).

In his address, the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, said that recognising the immense opportunities within the cargo sector, the Ministry had taken proactive steps with the establishment of a dedicated Cargo Directorate within the Federal Airports Authority of Nigeria (FAAN) as part of its ambitious plan to position Nigeria as a leading player in the global cargo market.

“This directorate is tasked with implementing far-reaching policies and programs that will catalyze the growth of our air cargo industry.

These initiatives are designed to streamline operations, enhance infrastructure, and foster partnerships to make our airports and logistics hubs the preferred gateways for cargo in the region,” Keyamo said.

The minister, represented by his Special Assistant, Mrs Janet Oputa, emphasised the significant economic benefits of a vibrant cargo sector, including increased trade, job creation, and foreign exchange earnings.

He noted that by facilitating the efficient movement of goods, Nigeria can gain access to new markets for its products, particularly agricultural exports. To achieve its goals, the ministry called for the active collaboration of industry leaders, regulatory bodies, financial institutions, and international partners.

With their support, Nigeria aims to transform its cargo industry into a multibillion-dollar sector that will contribute significantly to the nation’s economy. Speaking on the theme:

‘Opportunities and Challenges of Managing Air Cargo in Nigeria’, a cargo expert, Mr Ayo Efe-Lewis said, one of the major challenges facing the domestic air cargo industry was the lack of infrastructure and equipment. He stressed the urgent need to develop domestic cargo facilities in various airports across the country.

According to him, Nigeria has 32 airports, but only a few have designated cargo facilities, and most of these facilities are not equipped to handle cargo efficiently. “The domestic cargo handles about 5000 tons/month, which is about 8 per cent of the total volumes of air freight processed from Nigeria airports.

“About 1.8 million tons of cargo is moved around Nige – ria monthly and 1.79 million is moved by road, rail and our waterways. Only about 4000- 5000 tons of cargo is moved by air locally. Air Cargo traditionally represents about one per cent of global trade but 35 per cent in value,” he said.

The cargo expert stated that the lack of space on passengers’ aircraft for domestic cargo also creates uncertainty for perishable goods brought to the airport for freight.

“The domestic cargo handles about 5000 tons/month, which is about eight per cent of the total volumes of air freight processed from Nigeria airports.

Wole Shadare