Lagos airport gets first-ever domestic cargo terminal as FAAN boosts exports

explores partnership models to drive growth

Sade Williams/Business a.m.

A new domestic cargo terminal, the first ever, has come on stream within the General Aviation Terminal (GAT) at the Lagos airport, in what is being seen as part of efforts by the Federal Airports Authority of Nigeria (FAAN) to boost and promote exports.

The warehouse represents a bold step toward efficiency, connectivity, and sustainable economic growth, as well as a significant mark in ongoing efforts to build and modernise Nigeria’s aviation infrastructure, enhance cargo operations, and boost economic growth, said Olubunmi Kuku, managing director, FAAN, during the commissioning of the terminal.

Described as a milestone in Nigeria’s logistics sector, Kuku said the terminal will also serve as a catalyst for increasing international cargo volumes.

Kuku, who was represented by Adebola Joy Agunbiade, director of commercial and business development, commended the initiative to create the directorate of cargo development and services with the main objective of promoting exportation.

“This initiative has led to the completion and equipping of this domestic cargo processing facility. This is a critical hub for domestic and also international trade. Cargo movement is the lifeblood of commerce, powering industries, supporting businesses, and creating opportunities. As e-commerce expands, and agricultural exports surge, the demand for reliable, rapid, and secure cargo logistics has never been greater. This facility was designed precisely for this moment — to accelerate trade, enhance operational efficiency, and position us for the future.

“This domestic cargo terminal is a gateway for efficiency, speed, scalability and better domestic logistic movement. The ripple effect will be felt not only in increased revenue for the aviation sector but also in strengthening supply chains for businesses nationwide. Moreover, this terminal will serve as a catalyst for increasing international cargo volumes,’’ the FAAN chief executive said.

She further disclosed that similar terminals would be built in four other airports as the Authority explores public private partnership for efficiency.

“As Lagos remains the economic heartbeat of Nigeria, an efficient cargo hub here will attract more national freight operators. In line with our strategic roadmap, we have prioritised the development and commissioning of similar domestic cargo terminals in key geo-locations such as Abuja, Kano, Jos and Niger states, where space constraints are not like what we have in Lagos. We are actively exploring partnerships with state governments and private stakeholders to ensure these projects are delivered efficiently, further decentralizing and optimising cargo movement across the nation.

“This achievement is more than bricks and mortar. It is the result of vision, collaboration, and unwavering commitment. Our dedicated teams, government agencies, and industry partners have worked tirelessly to transform an idea into a reality that will strengthen our nation’s economic framework. As we inaugurate this warehouse today, let us look ahead to the opportunities it will create. Let us harness its potential to drive efficiency, expand trade networks, and reinforce Nigeria’s presence in the global cargo industry. We are unlocking opportunities for trade, commerce, and national development. Let us continue to work together to elevate Nigeria’s aviation sector to greater heights. Together, we are ushering in a new era—one where logistics is not a bottleneck but a driving force for prosperity,” Kuku added.

The facility will also serve as a revenue stream for FAAN apart from “creating more opportunities for the industry itself,” she noted.

“One of the things we’ve tried to do is to open up our revenue and one of the key things for us is cargo, you know that if you want to help push economic development in the country, cargo is key, trade is key and that is what this facility is going to do for us.”

Lekan Thomas, the director of cargo development and services, said the establishment of the domestic cargo shed is a direct result of Kuku’s visionary leadership, ensuring that cargo operations adhere to the highest standards.

Thomas, who disclosed that the terminal will be managed by General Services Administration while FAAN oversees the operations, said the facility sets a new benchmark for efficiency and capacity in domestic cargo handling, while reducing delays and streamlining logistics for businesses of all sizes.

“It is a testament to progress, purpose and hard work from different stakeholders, it represents a significant step towards a more interconnected and economically vibrant Nigeria. According International Air Transport Association (IATA), Nigeria handled approximately 174,000 metric tonnes of air freight in 2023, securing a place among Africa’s leading cargo countries.

“With imports accounting for about 65% of this volume – including machinery, pharmaceuticals, and high-value perishables Nigeria’s export sector trails, but continues to strengthen, driven by increasing global demand for agricultural produce, solid minerals, and textiles. Looking ahead, IATA projects that Nigeria’s air cargo industry will grow at an annual average rate of 5% over the next five years, fueled by trade liberalization and industrial expansion. Therefore, as Nigeria’s commercial hub, Lagos remains at the centre of these activities, making this newly commissioned domestic cargo shed a vital component of our national logistics framework,” he said.

Thomas praised Festus Keyamo, the minister of aviation and aerospace development, Kuku for their commitment to boosting cargo operations.

“We have witnessed a steadfast commitment to positioning Nigeria’s aviation and cargo sectors for international competitiveness. Her strategic approach has driven reforms, focused on operational excellence, infrastructural upgrades, and customer-centric services. As we inaugurate this facility today, we are already looking ahead to the next phase: the development of full-scale domestic cargo hubs at airports across the country. These hubs will go beyond being mere storage facilities – they will become state-of-the-art centres for logistics excellence, setting new industry standards and accelerating Nigeria’s aviation-driven economic growth,” he added.