Page 24 - LUA Sep - October 2022 for Magzter

COUNTRY REPORT

NIGERIA MUST PRODUCE
AIRPORT / COUNTRY CARGO VOLUME
(TONS) FOR AFCFTA
01 Jomo Kenyatta Int'l Airport, Kenya 363,204 Alex Nwuba, President of the Aircraft
Top 5 Owners and Pilots Association of Nigeria,
cargo 02 Cairo Int'l Airport, Egypt 333,536 said governments should adopt improved
airports 03 strategies to make cargo airports work in
in 2021 Oliver Reginald Int'l Airport, South Africa 304,018 Nigeria give the current trends in Africa’s
(ACI 04 Addis Ababa Boke Int'l Airport, Ethiopia 226,417 continental free trade area.
Statistics) The African Continental Free Trade
05 Murtala Muhammed Int'l Airport, Lagos 204,649 Area (AfCFTA) launched in January
2021, is seen as a huge opportunity for
Nigeria to export into 54 African States
cargo activities in the region. Majority of with a population of 1.3 billion and a
Nigeria’s traders and heavy importers of GDP of over $4 trillion. Nigeria was one
cargo come from the Eastern Nigeria, which of the last States to sign the AfCFTA
prompted the state government to cite the largely due to poor local production for
cargo airport in the state. export in Nigeria.
Similarly, the Commissioner of Works Capt. John Okakpum, a cargo expert
and Infrastructure in Ogun State, Ade and CEO of ABX Worldwide, said Nigeria
Akinsanya, revealed that the Ogun State needs to organize its exports system while
Cargo Airport in Western Nigeria, will be exports from Nigeria must be aligned
completed in the coming months with the with required international standards
aim of boosting air cargo in the region; and made traceable to become more
the airport is in close proximity to the We have attractive to foreign buyers. According to
Lagos International Airport which receives made massive him, Nigerian goods are in high demand
the largest bulk of Nigeria’s cargo and abroad, however, most of these goods still
passenger traffic. investments get rejected abroad due to several reasons
Furthermore, the Managing Director in cargo which can be resolved.
of SAHCO PLC, one of Nigeria’s two infrastructure Furthermore, the difficulty in doing
biggest ground handling companies, business in Nigeria caused by lack of
Basil Agboarumi, said that the company which is under- reliable energy supply, road, and other
has made massive investments in cargo utilized due infrastructure as well as high and
infrastructure which is under-utilized due increasing number of taxes, charges and
the low volume of exports of perishable the low volume fees make local production untenable
items from Nigeria. He also expressed of exports of while local producers incur losses due to
worry over the difficulty in expanding the harsh operating environment.
ground handling facilities, noting that perishable items Interestingly also, Obinna Anyaegbu,
SAHCO is hoping that FAAN will resolve from Nigeria. CEO of Chisco Express, a leading road
the constraints. transport provider in Nigeria and west
BASIL AGBOARUMI Africa, said Chisco is ready to provide
INSURANCE FOR CARGO SAHCO capacity to move cargo to serve the
Whereas cargo importers and exporters airports in Nigeria. He noted that the
generally call for the reduction of liability. Furthermore, Chief Babajide volume of cargo transported by road far
insurance premium in Nigeria, Edeki Olatunde-Agbeja, Chairman of African outweighs that of air transport amidst poor
Isujeh, Managing Director of Custodian Insurers Association, called on the road infrastructure and loss of perishable
& Allied Insurance Limited and Ganiyu industry to work collaboratively to ensure cargo on the roads.
Musa, Group Managing Director/CEO improvement of exports standards and With import outweighing exports in
of Cornerstone Insurance Plc. urged volume while insurers continue to provide the country, Nigeria may continue to
operators in air cargo industry to embrace reliable top-rated insurance. see the AfCFTA as unattractive since
insurance to support their businesses Also, to deal with the challenge of the country is still import-oriented and
against losses. In fact, Adetola Adegbayi, payments and financial support to the air yet to dismantle the array of challenges
Executive Director of Leadway Assurance cargo industry in Nigeria, blockchain has including unscrupulous and redundant
Plc. emphasized that insurance is the been identified as a value-addition for the government agencies that stifle exports at
cheapest way to prevent or minimize losses air cargo industry. Efosa Ighodaro, CEO the airports.
for the aviation industry, advising that it of Hashgreed, explained blockchain would Nigeria would dominate the African
is much better for cargo operators to pay boost government documentation and trade market if it could reverse its aversion
N100,000 (Nigerian Naira) in insurance certification of exports in Nigeria, while to local production and provide incentives
premium and avoid the N12million in promoting e-commerce in Nigeria. and standardization for local production.

22 LUA SEPTEMBER - OCTOBER 2022