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Nigeria increases revenue of $6 trillion by…

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Nigeria (Common Wealth) _ The federal government wants to increase revenue from aviation cargo exports, which are worth more than $6 trillion globally.

According to the International Air Transport Association (IATA), air freight, including agricultural exports from Nigeria, accounted for around 35% of world trade last year.This is why the federal government is attempting to increase its participation in this value chain by implementing action plans and interventions to shorten the turnaround time for cargo facilitation at airports.

According to a source, freight and passenger terminals have been earmarked for Lagos, Abuja, Kano, Owerri, Port Harcourt, Calabar, Enugu, Makurdi, Minna, Jos, Ilorin, Yola, and Kebbi. Furthermore, some state governments, including Anambra, Ebonyi, Ogun, Ekiti, and Yobe, have invested heavily in the cargo export value chain.

The Murtala Muhammed International Airport (MMIA) in Lagos ranks fifth in Africa, according to the Airports Council International (ACI), with 204, 649 tonnes of cargo air freighted in the last several years. With 226, 417 tonnes of cargo, Ethiopia’s Addis Ababa Bole International Airport ranked fourth. With 304, 018 passengers, South Africa’s Oliver Reginald International Airport ranks third.

Egypt’s Cairo International Airport comes in second with 333,536 tonnes, followed by Kenya’s Jomo Kenyatta International Airport with 363,204 tonnes.

Mr Kabir Yusuf Mohammed, Managing Director of the Federal Airports Authority of Nigeria (FAAN), stated that the government is leveraging deliberate infrastructure – Aviation Cargo Village at Lagos Airport, other international airports, and cargo facilities – to stimulate agro-produce export.Mohammed stated at a symposium that the Federal Government is committed to increasing air cargo export by developing airport facilities that combine delivery speed and efficiency.

According to Mohammed, our airports shipped a total of 16.7metric tonnes of cargo in the first half of 2021. He stated that 17.7 metric tonnes were shipped in the first half of last year, representing a 6.2% rise over the 2021 export figure.

“However, in the same period in 2023, a total of about 12.9 metric tonnes was airlifted, resulting in a further 29.5 percent drop,” Mohammed stated. However, the IATA report attributed the low performance to instability caused by supply chain restrictions and economic conditions.

According to experts, if responsible authorities fix the poor insurance coverage in cargo facilitation, Nigeria could enhance activities in the air cargo value chain.

Furthermore, they stated that authorities must address issues such as poor standardisation and certification of cargo products, particularly agricultural produce, as well as substandard packaging, processing, and traceability.

Mohammed believes that the government needs the private sector’s help to build the infrastructure required to make these airports truly cargo-friendly. We can exploit the land mass available at our airports to construct world-class cargo facilities, significantly improving freight facilitation. To fulfill the destination standards, fresh organic produce such as cashews, avocados, exotic flowers, and yams must be well packaged, processed, and certified.

Mr John Ekeanya, Managing Director/Chief Executive Officer of JOHDIC Resources Limited, further stated that the logistic business plays a significant role in Nigeria’s participation in the air cargo export value chain.He predicted that growth in the logistics sector will continue in the next years, with a compound annual growth rate (CAGR) of 5.5% between 2020 and 2025.

He emphasized that such expansion will be driven by factors such as improved infrastructure, more demand for e-commerce, and a growing need for cold chain logistics to support the pharmaceutical and food industries.

Ekeanya stated that the Federal Government urgently needs to equip special-purpose cargo airports across the country with sufficient storage and processing facilities in order to boost the growth of air cargo export. Construct silos and warehouses for agricultural and manufactured items. Have enough vehicles to transport products and produce to nearby warehouses for transport to the cargo airport. The road infrastructure should be improved quickly.

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