FAAN set to drive exports through new cargo Airports

Following the plans carried out by the Federal Airport Authority of Nigeria, (FAAN) to designate 14 airports specifically for cargo and the 30percent increase in the volume of goods exported through airfreight only points to the fact that there will be a surge in exports as against imports in the country.

According to record of the Nigerian Aviation Handling Company Plc, NAHCO Aviance in 2014, the volume of goods coming into the country through airfreight is said to be in excess of 130million kg but as at 2015, the country could only boost of about 100million kg, amounting to about 30millionkg decrease in imports.

On the other hand the volume of goods exported via airfreight for 2014 was about 7million kg, which increased in 2015 to about 10millionkg.

Industry watchers say this increase in export is driven by the current harsh economic situation, the export promotion drive by Nigerian Export Promotion Council, the drive of the federal government to promote export and the devaluation of naira.

According to Yakubu Dati, general manager, Public Communications of FAAN, “cargo is one area we are looking at and we believe that with the new airports structured towards cargo, especially perishable cargo, it will make it easier for Nigeria to export its goods, since the country has the market for it.

“All we need to do is to create that bridge, which comes with building of storage facility because doing a terminal for cargo comes with these facilities. FAAN has taken this up and very soon, the cargo airports will be ready to commence cargo freight.”

In 2010, 240million dollars was made from export of perishable goods from countries like Ghana, Cameron, South Africa and Zimbabwe but none came from Nigeria, showing an urgent need to have channels through which these goods can be exported to other countries for revenue.
Dati explained that Nigeria naturally processes all the natural that is required to make it an export dependent country and FAAN will ensure it optimizes its position to drive exports to militate against the challenges resulting from the oil down pour.

He however, noted that as FAAN works to make this happen, there are standards set down by the Chamber of Commerce and other relevant agencies to be met for goods get into the international market.

Seyi Adewale, chief commercial officer, Nigerian Aviation Handling Company Plc explained that even though Nigeria is an import dependent country, with all the restrictions by CBN to access of foreign exchange, all these have contributed in the reduction of cargo in the country.
He noted that what used to happen before is that cargo airlines fly really full coming into the country but when they are going back, they go back empty, but this situation has changed with the government policy and more enlightenment programme by Nigerian Export Promotion Council, and the country started to see somewhat increase in export.

According to him, “Dangote Group has branches all over Africa and some of its raw materials are exported from Nigeria to other countries. With Dangote’s shipment alone, the volumes will radically increase. If not for restrictions in nations like Europe on packaging or meeting their exporting standards, we will have had much more exports than we do today.”

“The good thing is that across the West African coast, most especially Nigeria, we are exporting a lot to West African countries. It is obvious that we are the regional players and we technically feed the whole of West Africa.”

He disclosed that goods exported through cargo are household goods, consumer goods agricultural products and other local products such as locally-made weave-ons, paints amongst others.
Adewale said that Nigeria has so many export potentials but the problem is that people are not aware, adding that government agencies should do more in enlightening the people.

According to Olusegun Awolowo, CEO, Nigerian Export Promotion Council (NEPC), Nigeria currently exports tobacco products, plastics and rubber footwear, noodles and biscuits, polybags, milk products, iron and steel, insecticides, beverages, tomato paste and fruit juices to the top 10 African countries, which include Ghana, Niger, Cote d’Ivoire, Togo, Benin and Burkina Faso. Others are Guinea, Mali, Liberia and Sierra Leone.

Nigeria’s topmost export products to these countries are cocoa and rubber. Much of the trade between Nigeria and West Africa is informal, despite that the official trade among West African countries is only 12 percent.

Nigeria’s export to the 15 countries of the Economic Community of West African Countries in 2014 stood at $350.8 million.

Ifeoma Okeke