EFFECT OF AIR FREIGHT INDUSTRY ON ECONOMIC DEVELOPMENT IN NIGERIA

A Case Study of Air Cargo Operations at Murtala Muhammed International Airport (MMIA) Lagos.

Emmanuel Temitope Elegah
 MASTER OF BUSINESS ADMINISTRATION (MBA)
LAGOS STATE UNIVERSITY, OJO, NIGERIA.
MARCH 2014.

ABSTRACT
Air freight industry in Nigeria has shown meaningful bearing on the economy in the last decades. It has created tremendous opportunities for participants in the industry and trade integration with other promising nations has been influenced with significant global reach measured in terms of tonnage carried to and from the country.
There was a strong positive relationship between air cargo traffic and GDP in the past ten years. However, major findings from the research study showed that facilities and infrastructure at the main air cargo hub in Nigeria are inadequate to meet the heavy demand of cargo operations. The industry is characterized by high level of import operations and low level of export operations..
The report revealed serious challenges militating against efficiency of air cargo system in Nigeria. In view of that, the researcher offered recommendations targeted at improving revenue generation and efficiency in the industry.



 (Abridged)  ....Recommendations
Subsequent to the major findings in the study, the following suggestions were offered:

There is need to extend major cargo ramps and increase cargo facilities particularly at the Lagos terminal due to daily heavy traffic of cargo most especially during festive seasons. This will reduce congestion and solve problems associated with cargo delay, clearance and processing.
For efficient cargo handling, handlers need modern infrastructure such as freight terminals with automated stacking and sorting position, extensive and reliable cold storage facilities, standard strong room for valuable and vulnerable goods, perishable center for truck-loading and discharge, fixed stacking dollies, mobile dollies, shelter area for awaiting shipments, adequate number of tractors and electronics scales.

It is important for customs to minimize the time required for clearance of import cargo and to simplify the procedure involved in cargo transshipped through the airport terminals because of high value and time sensitivity of cargo.

Government should support the aviation sector to achieve the ideal status by improving airport performance through investment in infrastructure and transfer of operations to private operators.

Government must seriously tackle the rising trend of alleged corrupt activities by some of its agencies responsible for revenue generation at the terminals and in air freight industry.

Customs, FAAN and other security agencies must carry out their operations assiduously in order to curb smuggling and theft of cargo at the terminals. Air cargo terminals must be inaccessible to unauthorized persons. Functioning CCTVs, surveillance cameras and tracking devices should effectively aid in the operations of these agencies.

The industry is a viable area for investment and government should formulate well-thought-out trade policies targeted at encouraging air cargo business most importantly the export section of the industry. Air cargo operations at the terminals are depicted by high level of import activities and low level of export activities. And this has resulted to trade imbalance. Government via its agencies at the terminals should create enabling atmosphere for export operations and businesses to thrive.

Nigeria could be a net exporter of agricultural produce if perishable cargo terminals are established at strategic locations in the country. This would help in storage and dramatically reduce wastage, and generate extra revenue for the nation. The following agricultural products abound in Nigeria and can be exported in collaboration with the farmers in order to enhance large-scale production: Cocoa, Groundnuts, kola nuts, Cassava, Tomatoes, Walnuts Onion, Cashew nuts and kernel, Lettuce, Shea nuts, Quincy seed (Bitter kola) Mushrooms, Potatoes, Mangoes, Guava Ginger, etc..

There is need to cultivate adequate competition amongst air cargo service providers at the terminal to ensure efficient services.
There is need for transparency and competency in the operations of the Nigerian civil aviation (NCAA) which is the authorized body overseeing the industry. Intermittent air crashes have damaged the safety record of airlines in the country.

There is no doubt that air freight industry which is majorly import driven has influenced economic growth and invariably impacted on economic development in the country. However, promotion of export business in the industry would create enormous opportunities and provide better economic benefits..



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