Nigeria Air Freight - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

Nigeria Air Freight - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

The Nigeria Air Freight Market size is estimated at USD 3.01 billion in 2024, and is expected to reach USD 5.64 billion by 2029, growing at a CAGR of 13.54% during the forecast period (2024-2029).

Air cargo service providers are facing new difficulties as a result of the rising demand for air freight transportation services.

Despite rising freight shipping costs and some related difficulties, Nigeria has seen a significant increase in air freight throughputs.

According to a recent review of studies in Nigerian air transport, the analysis of passenger flow, aircraft movement, and flight operations with an emphasis on safety and security, as well as issues with policy and bilateral agreements, received more deliberate attention than the flow of air cargo. Even though they are not specifically designed for cargo, the majority of airlines rely heavily on them for revenue generation.

The scale of the domestic aircraft cargo market There are signs that the domestic cargo market is worth N40 billion (approx. USD 0.087 billion), from which the airlines and the government stand to profit greatly, even though the government ought to bridge the gap between the volume of air cargo imports and exports in the nation.

However, several issues, including a lack of updated equipment, corrupt immigration officials, and Nigerian customs, are impeding the sustainability of aviation logistics and air cargo lifting by airlines in Nigeria.

Nigeria Air Freight Market Trends

Growth In Ecommerce is driving the market

The sale of both physical and digital goods has almost entirely become digital. With the addition of a payment gateway, Nigeria's e-commerce platform has improved in efficiency. Some Nigerian traditional banks have developed their payment gateways over time, such as GTPay by GTBank. Top-notch payment gateway services are provided in the nation by financial technology businesses, including Paypal, Stripe, Interswitch, WayaPay (WayaQuick), Flutterwave, and other payment gateways. Nigeria has participated in the development of the Internet. In terms of both quality and delivery style, there has been an improvement. The exchange of goods served as the economic sector's mainstay in the beginning. Following that, using commercial banks became more popular and offered advantages over the former.

The largest segment of Nigerian e-commerce in 2022 was fashion. 35 percent of the entire value was in the sector. 28 percent went to electronics and media, while 17 percent went to furniture and appliances.

Growing Demand for the Air Freight Market

The Middle East and Europe are the next-largest markets for passenger flows into and out of Nigeria. A total of 4 million passengers arrived in Nigeria from Africa (73.3 percent of the total), followed by 589 thousand from Europe (10.7 percent) and 366 thousand from the Middle East (6.7 percent).

By enabling quick connections between cities, air travel benefits both customers and the larger economy. The economic flows of products, investments, people, and ideas that are the key drivers of economic progress are made possible by these fictitious bridges in the air.

Nigeria's GDP is expected to be supported by the air transport sector, including airlines and its supply chain, to the tune of USD 600 million. Spending by visitors from other countries contributes a total of USD 1.7 billion to the GDP of the nation. Total inputs to the aviation industry and air travel for foreign visitors account for 0.4 percent of the nation's GDP.

According to the global Air Trade Facilitation Index (ATFI) and the eFreight Friendliness Index (EFFI), Nigeria ranks 68th out of 124 countries for its facilitation of air cargo through its customs and border rules. Nigeria is ranked 127th out of 136 nations on the worldwide Enabling Trade Index (ETI) for facilitating the free flow of commodities across borders and to their final destination.

Nigeria Air Freight Industry Overview

The air freight market is mildly fragmented. Some of the major players in the market, who operate in many different parts of the world, dominate it. Air cargo service providers are facing new difficulties as a result of the rising demand for air freight transportation services. In order to offer services at a reasonable price, airlines must concentrate on implementing fuel-efficient solutions and incorporating cutting-edge technologies.

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