SAHCO sees air cargo as Nigeria's next non-oil revenue driver

Skyway Aviation Handling Company (SAHCO) Plc has identified air cargo and the rapidly expanding e-commerce market as one of Nigeria’s most promising alternatives to oil revenue, urging government and industry stakeholders to modernise cargo logistics to unlock billions of dollars in non-oil export earnings.

The ground handling company said Nigeria’s growing digital economy, rising non-oil exports and increasing demand for time-sensitive shipments present significant opportunities to diversify the economy, expand foreign exchange earnings and generate new revenue streams beyond crude oil.

Speaking at the Airport Business Summit and Expo (ABSE 2026) in Lagos, the Managing Director of SAHCO, Mrs Adenike Aboderin, said the aviation industry’s biggest challenge was no longer creating demand but building an efficient, technology-driven cargo ecosystem capable of supporting the country’s expanding digital commerce.

Represented by the Executive Director, Business Development, Mr Babatunde Afolabi, Aboderin delivered a paper titled “Air Cargo Logistics and E-commerce Supply Chain in Nigeria.”

She disclosed that Nigeria recorded $6.1 billion in non-oil exports in 2025, while the country’s online population reached 109 million, reflecting the growing importance of digital commerce to economic growth.

Aboderin added that Nigeria’s e-commerce market is projected to expand to $18.7 billion by 2031, while African airline cargo demand is expected to grow by 6.0 per cent in 2025, creating significant opportunities for the aviation sector to increase non-aeronautical revenues.

According to her, cargo operations are increasingly shifting from traditional bulk imports to high-value, time-sensitive and digitally tracked consignments driven by e-commerce, pharmaceuticals, perishables and small and medium-sized enterprises.

She noted that logistics operators capable of providing end-to-end cargo visibility, regulatory compliance, efficient cold-chain infrastructure and predictable turnaround times would be best positioned to benefit from the emerging opportunities.

Aboderin stressed that Nigeria’s aviation industry must integrate airport infrastructure, customs operations, ground handling services, digital technology platforms and export promotion initiatives into a coordinated cargo ecosystem capable of competing globally.

Despite the enormous potential, she observed that structural bottlenecks continue to constrain the country’s air cargo industry.

According to her, fragmented shipments by small businesses, weak cargo consolidation, manual documentation, paper-based customs processes, inadequate cold-chain infrastructure and rising operating costs resulting from foreign exchange volatility, aviation fuel prices and airport charges continue to undermine efficiency.

She also expressed concern over the continued movement of export cargo through informal channels, noting that the practice deprives the country of revenue, weakens regulatory compliance and limits trade data visibility.

Aboderin called for phased reforms centred on digital cargo processing, infrastructure upgrades and stronger collaboration among airports, customs authorities, ground handlers and exporters.

She maintained that improving cargo efficiency would enable Nigeria to maximise opportunities arising from the African Continental Free Trade Area (AfCFTA), the expanding e-commerce market and growing regional trade, while positioning air cargo as a strategic pillar of the country’s non-oil economic diversification agenda.