Nigeria's Air Cargo Industry Suffers as Trapped Funds and Foreign Exchange Scarcity Affect Operations

The air cargo industry in Nigeria has been severely affected by trapped funds and foreign exchange scarcity, leading to a lack of freighter cargo airlines operating in the country. Kingsley Nwokeoma, president of the Association of Foreign Airlines and Representatives in Nigeria, said that currently, no freighter cargo airline is coming into Nigeria, and big cargo planes specifically designed to carry cargo have stopped flying into the country. Before the trapped funds issue started, cargo aircraft flew into Nigeria three to four times weekly. However, currently, most cargo planes have stopped operations in Nigeria.

The AFARN president explained that operators who need to export or import very big cargoes that cannot enter the belly of passenger flights have to pay for a charter plane to bring in those cargoes. Telecommunications operators, for instance, have to charter planes to bring in their masts. The marine sector is taking advantage of this gap, and more people who are willing to wait for one to three months for the arrival of their goods now export and import via sea.

The situation has also forced the International Air Transport Association (IATA) to increase its exchange rate. Trapped funds have affected air transportation business in Nigeria, and this has led to airlines stopping cargo flights into the country. Cargolux, Saudi Cargo, and Emirates Cargo airlines, which operated cargo flights into Nigeria, have all stopped flights into the country. Only Turkish Airlines cargo planes still carry out skeletal operations in Nigeria, and sometimes, the airline is unable to operate even one flight to the country in one week.

As a result, airlines now use the belly compartment in passenger aircraft to accommodate cargo. However, importers or exporters with large cargo have had to charter cargo planes to bring in their cargo products into Nigeria at very exorbitant rates. The lack of freighter cargo airlines operating in Nigeria has led to an increase in the cost of air transportation, making it difficult for businesses to operate. The government needs to take steps to address the trapped funds and foreign exchange scarcity issues affecting the air cargo industry in Nigeria.