Regional Pulse: Lekki-Epe Airport to support cargo growth in Nigeria

The Nigerian government is set to begin developing its second airport in Lagos, Lekki-Epe International Airport, in early 2023, nearly a decade after its proposal. The airport’s development, which received government approval in October, could push more carriers and handlers to base their cargo operations in the city, according to stakeholders. “With the focus on returning trade levels to those of pre-COVID-19 levels, we believe that any investment to increase and improve airfreight cargo-handling capabilities and flights into and out of Nigeria would be welcome,” Keith Marshall, CEVA Logistics regional air product leader for the Middle East and Africa, told Air Cargo World. Air cargo in Nigeria Demand and volumes in Nigeria are higher than neighboring West African countries, Jade da Costa, chief executive at air cargo consolidator Aero Africa, told Air Cargo World . Ex-U.S. e-commerce is driving most of the volumes into Nigeria, da Costa said, but also into other parts of West Africa. “In my opinion, you’ve got to be in Nigeria to make it work,” he said. Demand for airfreight has yet to return to pre-pandemic levels, but CEVA expects an increase during the second quarter of 2023, Marshall noted. In 2020, around 62% of Nigeria’s cross-border e-commerce came from China and 18% from the U.S., according to Cargo Facts Consulting . Household e-commerce consumption in Nigeria in 2020 reached around $289 billion, the greatest expenditure in the continent and 14% greater than South Africa’s $252 billion that same year. Perishable shipments for groceries also drive volumes from Europe, Marshall said. Oil and gas remain the country’s largest assets, but pharmaceuticals coming from India and general cargo from China continue to create growth as well, da Costa said. In addition to economic growth, passenger demand is driving connectivity from Nigeria. The country’s Q2 passenger traffic surpassed pre-pandemic levels and has demonstrated “strong and sustained growth since early 2020,” according to the International Air Transport Association’s (IATA) Quarterly Air Transport Chartbook for 2023. [caption id="attachment_57133309" align="aligncenter" width="918"] Photo / IATA[/caption] In July, Nigeria saw 16% growth in passenger movement compared with the same month in 2019. In 2019, the nation’s busiest airport, Murtala Muhammed International Airport (LOS), moved around 67,000 tonnes of cargo, and about 76,100 tonnes in the second half of 2020, as reported by the National Bureau of Statistics of Nigeria (FAAN). The organization did not provide data for 2021 or 2022. The addition of Lekki-Epe is expected to relieve congestion at LOS and allow for further development. Major ground handling agents at LOS have upgraded their facilities in recent years, particularly in warehousing and cold-chain facilities, Marshall said. Overall, the airport’s infrastructure and road access points have been improved as well. Lekki-Epe Construction is set to begin early next year on Lekki-Epe International Airport on nearly 3,500 hectares (8,648 acres) of land. The airport, which will be located around 10 kilometers from the Lekki Free Trade Zone near a major oil refinery and deep seaport, will cost around $900 million in its first phase, according to reports. Improvements in infrastructure and digital platform development continue to be focuses for Nigeria as it creates trade growth, Marshall added. Stakeholders expand into Nigeria Aero Africa is interested in developing its West Africa hub at Lagos and would utilize Lekki-Epe if possible, da Costa said. The company has yet to establish an official footprint in Nigeria but has worked with network partners for about five years in the Lagos area, with some in Abuja. Aero Africa established its East Africa hub in Nairobi in September and plans to open a West Africa hub somewhere in Nigeria by mid-2023, da Costa said, noting Lekki-Epe would be an optimal position for the move. France-headquartered CEVA Logistics has similarly operated in Nigeria through its agents but established its direct presence in June "to support the growing Nigerian and West Africa trade development with the rest of the world,” Marshall said. Other airfreight stakeholders have seen opportunities in Nigeria. FedEx established a direct presence in Nigeria in December, recognizing the country is “on the right path for further growth,” Taarek Hinedi, vice president for FedEx Middle East and Africa operations, said in a Dec. 7 release. In summer 2021, Silk Way West and Cainiao added cargo capacity to Nigeria, connecting the nation to the United Arab Emirates (DWC) and Hong Kong (HKG), respectively. Local Nigerian cargo airlines Allied Air and Gig Aviation have grown their freighter fleets as well, as reported by Air Cargo World’s sister publication Cargo Facts . Allied Air — which flies intra-Africa routes for its customers like DHL — took redelivery of its 737-800SF aircraft in October. In May, logistics company GIG Group’s subsidiary GIG Aviation launched cargo operations with two converted ATR 72-500Fs , which it plans to use for e-commerce operations.

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