Experts urge states to ensure workable business plans for cargo airport projects

Aviation stakeholders have urged state governments planning cargo airports to adopt workable business plans to ensure sustainability and economic value.
They gave the advice in separate interviews with journalists on Sunday in Abuja.
The stakeholders warned that building airports, particularly for cargo, without clear plans could waste scarce resources needed for critical sectors like health, education, power, water and roads.
A cargo airport is designed primarily for transporting goods rather than passengers.
Such airports handle items like agricultural produce, machinery, raw materials and commercial goods.
They typically feature warehouses, freight terminals and specialised handling equipment, customs facilities, and runways capable of handling large aircraft.
Unlike passenger airports, cargo airports focus on efficiency in logistics, storage, and goods movement.
No fewer than 15 states have pursued agro-cargo airports, most of which are either incomplete or not viable even when completed.
Many of these airports were built for political visibility rather than economic logic. Some were poorly located, far from production hubs or logistics corridors.
John Ojikutu, chief executive officer of Centurion Security and Safety, said a business plan determines whether a cargo airport will succeed or fail.
He said poorly planned airports often become abandoned projects, wasting billions of naira that could serve broader public needs.
Mr Ojikutu noted that fewer than 20 million Nigerians use air transport, while over 100 million depend daily on roads, water, electricity, and healthcare services.
He said many airports failed because they were built for political reasons rather than logistics and economic viability.
“Poorly planned airports can divert funds from essential services.
“It amounts to wastage of resources that could have gone to education, health, power, water and roads,” Mr Ojikutu said.
According to him, proper planning requires aligning cargo demand, airline partnerships, funding, and regulatory approvals before construction begins.
Mr Ojikutu cited Nasarawa State’s airport as an example of poor planning despite significant investment.
He said the airport, initiated in 2015 and completed in 2022, cost about N10 billion but lacks a commercial operations timeline.
He added that the facility remains largely unused, with no significant cargo or passenger operations since commissioning.
Mr Ojikutu said the federal government had agreed to take over the airport and compensate the state government.
He noted that Nasarawa, with strong agricultural production, had the potential for a cargo airport if properly planned.
In contrast, he commended Ogun State’s Gateway International Airport for adopting a viable business model.
He said the airport began passenger operations in October 2025 and plans to commence cargo services in 2026.
Mr Ojikutu added that the airport’s four-kilometre runway can accommodate large cargo aircraft, positioning it as a logistics hub in West Africa.
He said partnerships with logistics firms and regulatory approvals have strengthened the airport’s operational readiness.
He also noted efforts to decentralise Nigeria’s cargo system, which is currently dominated by Lagos.
Abdulmalik Musa, business development manager at Abuja Aero Contractors of Nigeria Limited, also stressed the importance of strong business planning.
He said cargo airports require more detailed planning than passenger airports due to higher financial and operational risks.
Mr Musa noted that poor planning leads to uncertainty and undermines long-term profitability.
“A cargo airport requires a reliable business plan to make financing realistic.
“Without a solid plan, operators are essentially flying blindly without assurance of profitability,” Mr Musa said.
He commended Ogun State’s approach, saying it could reduce pressure on Lagos’ cargo operations.
According to him, Lagos currently handles over 80 per cent of Nigeria’s air cargo traffic.
He said other cities such as Abuja, Kano, and Port Harcourt remain minor players in cargo operations.
Mr Musa explained that Nigeria’s cargo system is evolving, with new investments and export growth indicating gradual modernisation.
He identified key challenges in the sector, including poor ground infrastructure, inefficient customs processes, and tariff disputes.
According to him, there is no national cargo strategy, coordinated cargo master plan, or integration with seaports, roads, and rail logistics.
He said that, although 13 airports were designated for cargo operations in 2013, only a few are fully functional.
Mr Musa listed Lagos, Abuja, Kano, and Port Harcourt as the most active cargo airports in the country.
He noted that many designated airports lack basic facilities required for efficient cargo handling.
According to him, Lagos handled 116.7 million kilogrammes of cargo in 2024 out of a national total of 159.4 million kilogrammes.
He added that exports are increasing, with Lagos becoming more export-driven rather than import-focused.
In conclusion, stakeholders believe that sustainable cargo airports demand strategic planning, not political ambition.
They argued that without viable business models and integration into logistics networks, such projects risk becoming costly symbols of misplaced priorities.
The stakeholders also emphasised aligning infrastructure with demand, partnerships, and regulation.
According to them, success stories show that careful planning, location advantage, and private sector collaboration can transform airports into productive economic assets.
Ultimately, they contend that Nigeria’s cargo aviation growth depends on a coordinated national strategy, improved infrastructure, and accountability.
(NAN)
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