FAAN’s increased revenue paradox despite declined cargo throughput in 2025

The Federal Airports Authority of Nigeria (FAAN) has reported a notable paradox in its 2025 fiscal performance: increased revenue generation and collection efficiency despite a decline in total cargo throughput compared to 2024.

This shift is largely attributed to aggressive operational reforms spearheaded by the Directorate of Cargo Development and Services, aimed at plugging chronic revenue leakages and modernising legacy processes.

The Authority’s ability to grow income while handling less volume stems from several strategic “operational corrections” implemented throughout 2025.

For the first time in 15 years, FAAN relocated its operational staff and revenue-collection desks directly into cargo warehouses (specifically NAHCO and SAHCO). This physical presence strategy ensures real-time oversight of cargo charges.

Operation Go-Cashless launched in late 2025; this initiative transitioned revenue points—including access gates, car parks, and VIP lounges—to electronic payments.

This has minimised human involvement in cash handling, which was previously a major source of leakage.

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.

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 optimisation framework that will introduce a per-kilogram charging model for courier operators, replacing the current system based on total shipment weight.

The official explained that this approach will eliminate identified loopholes and enhance revenue generation.

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.

According to the official, implementing the tariff adjustment earlier would not have yielded meaningful revenue gains, as a significant portion of earnings would still have been lost due to 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.

He further noted that progress recorded reflects the vision behind the creation of the Cargo Development and Services Directorate by the Minister, with strong operational support from the agency’s managing Director, Mrs Olubunmi Kuku.

Wole Shadare