Some of our equipment costs up to $600,000, and we pay exorbitant duties to import them. In one year, NAHCO alone has spent nearly $1 million on duty payments for spare parts.

BY ANTHONY OMOH

Ground handling companies in Nigeria’s aviation industry have urged the Federal Government to grant them duty waivers and concessionary loans to support business growth and sustainability. Ground handlers demand waivers to reduce financial strain and ensure operational efficiency.

Industry operators lament that low-profit margins are making operations unsustainable. They are calling for government collaboration to ensure their survival.

Chairman of the Aviation Ground Handlers Association of Nigeria (AGHAN), Mr. ‘Niyi Adigun, highlighted disparities in government policies. While indigenous airlines enjoy customs waivers, ground handling companies, despite their significant investments, face high import duties on operational equipment.

“The huge sums we pay to clear imported equipment are crippling our business. A duty waiver will ease the economic strain on our sector,” Adigun stated.

Moreover, he appealed for concessionary loans through the Central Bank of Nigeria (CBN) to enable ground handlers to access financing at single-digit interest rates.

“Aviation is a key driver of economic development. The government must create a conducive business environment as part of its ease-of-doing-business agenda. We import ground support equipment (GSE), pushback tractors, and other costly machinery. A duty waiver will significantly reduce our financial burden,” he added.

Ground handlers demand waivers as a crucial step toward achieving financial stability and maintaining high operational standards in the sector.

In addition, Adigun defended the recent adjustment in safety threshold handling rates, explaining that the 15% reduction in initial rates was a concession to support the Minister of Aviation and Aerospace Development, Festus Keyamo’s, Five-Point Agenda.

“The increment was necessitated by economic realities. Our industry is struggling due to rising costs, but we followed the International Civil Aviation Organisation (ICAO) recommendations for rate adjustments, including stakeholder engagements,” he said.

Similarly, Otunba John Adebanjo, Chairman of Swissport, stressed that indigenous airlines must pay fair rates for handling services. He pointed out that Nigerian carriers pay significantly higher handling fees for services abroad but resist similar pricing adjustments domestically.

“Our airlines frequently increase airfares without consulting stakeholders, yet they demand reductions when handling companies seek necessary adjustments,” Adebanjo said.

Additionally, he emphasized the rising cost of doing business, citing increases in fuel prices, salaries, and foreign exchange rates.

“The dollar exchange rate has surged by nearly 500% in recent years, yet we have only sought a marginal increase. Despite demands for a 20% reduction, we compromised at 15% due to interventions from Minister Keyamo and the Director-General of the Nigeria Civil Aviation Authority (NCAA), Captain Chris Najomo.”

Furthermore, Prince Saheed Lasisi, Executive Director, Commercial and Business Development at NAHCO, reiterated the importance of government support, arguing that ground handlers deserve the same duty waivers granted to airlines.

“Some of our equipment costs up to $600,000, and we pay exorbitant duties to import them. In one year, NAHCO alone has spent nearly $1 million on duty payments for spare parts. Government concessions will help sustain our operations,” Lasisi stated.

Likewise, AGHAN Vice Chairman, Mr. Ahmed Bashir, commended the intervention of Keyamo and Najomo in resolving the handling rate issue. He confirmed that the new safety threshold rates were implemented following ICAO’s principles of cost recovery, stakeholder engagement, and transparency.

Bashir also revealed that annual rate reviews will now be conducted based on prevailing economic realities.

“Our business faces high costs, including electricity, labor, insurance, fuel, and equipment maintenance. Regular reviews will ensure pricing remains fair and sustainable,” he concluded.