Despite the significant economic potential of the cargo industry and Nigeria’s abundance of arable land, Nigerian airlines have yet to fully capitalize on this sector to bolster their financial standing.
Mr. Ikechi Uko, founder of Akwaaba African Travel Market and Coordinator of the Aviacargo Road Map Committee, emphasized that the opportunities within the cargo industry extend far beyond passenger transportation, highlighting missed revenue streams for local carriers.
Addressing attendees at the 48th Annual General Meeting (AGM) of the National Association of Nigeria Travel Agencies (NANTA) on the theme “Unlocking Africa’s Economic Potential: Travel and Tourism As Catalyst For Intra-Africa Business, Investment And Trade,” Uko stressed the immense benefits that Nigerian airlines could reap from the cargo sector.
He pointed to Ethiopian Airlines, Africa’s largest carrier, where 52 percent of revenue is attributed to cargo operations.
Uko highlighted troubling statistics revealing that approximately 50 percent of agricultural produce in Nigeria goes to waste due to poor road infrastructure.
He lamented the decline of Jos as a key agro-produce hub, noting that this region, which once hosted 26 daily flights transporting perishable goods, now lacks any flight operations.
This decline has resulted in the abandonment of farms by farmers seeking more stable and profitable ventures.
Shockingly, Uko revealed that up to 80 percent of perishable produce from Jos goes to waste.
“Recent research reveals that in Nigeria, approximately 50 percent of all agricultural products perish before reaching the market. In Jos, a staggering 80 percent of locally produced goods face the same fate, except for Soya Beans, every other thing is at a risk of being lost because of bad roads.
“Back in 1986, Jos was serviced by 26 cargo flights, but today, it doesn’t receive any. You can witness farms like Helina Farms abandoning perishable produce to pursue more stable ventures. From my analysis, the cargo potential in Nigeria surpasses that of passenger traffic due to our significant production capacity. The new Managing Director of FAAN is keen on tapping into this potential by focusing on the Northwest region.
“In Africa, cross-border trade is challenging without efficient cargo transport. Even using DHL for international shipping presents logistical hurdles. Ethiopian Airlines derives 52 percent of its revenue from cargo operations, showcasing the immense opportunity. Currently, Kenya leads in air cargo business in Africa despite its smaller airline and airport capacity. In Nigeria and West Africa, cargo operations predominantly utilize passenger aircrafts at night, which could be optimized to maximize both cargo and passenger operations.”
“We are currently handling only about 170,000 metric tonnes of cargo per year in Nigeria, which is extremely low for a country of our size and potential. Ten freighters arrive in the country, but unfortunately, they depart empty. This underscores the enormous untapped opportunities within the cargo sector.”
