The ground handling companies in Nigeria’s aviation sector are seeking government intervention through duty waivers and concessionary loans to improve business conditions.
They argue that the sector’s low-profit margins make operations challenging and unattractive, necessitating government support for sustainability and growth.
During a stakeholders’ meeting organized by the Ministry of Aviation and Aerospace Development over the weekend in Lagos, ground handling operators engaged with journalists, emphasizing the need for government support.
The Chairman of the Aviation Ground Handlers Association of Nigeria, ‘Niyi Adigun, expressed concern that while domestic airlines have received government waivers, ground handling companies have been overlooked.
Adigun declared that the huge money paid by the company to clear imported operational equipment at the ports was killing their business.
He pointed out that if the government considers waivers of such to the handling companies, it will mitigate the impact of the harsh economy on the handling companies.
The AGHAN Chairman appealed to the Federal Government to facilitate concessionary loans for operators in the sector through the Central Bank of Nigeria.
“Aviation is a catalyst to economic development, and if you want to develop economically, all the sectors that contribute to economic development must be taken care of. The government should make this conducive for us in the name of ease of doing business.
“We are also demanding duty waivers from the Federal Government.
“This is very important to sustain our operations. They have done so for airlines; they should also do the same for us. We also import equipment into the country—ground support equipment, pushback, and others. These things cost us hugely. If we can have a duty waiver, it will reduce our stress,” he said.
Adigun justified the new safety threshold rates set by ground handling companies, explaining that the 15% reduction from their initial demand was their contribution to Minister Festus Keyamo’s Five-Point Agenda for promoting sustainability in the aviation industry.
“What we did was right-pricing, and I thank the Minister of Aviation and Capt. Chris Najomo, the Director-General of Civil Aviation, for their intervention.
“We need to stop this master-servant relationship when it concerns the airlines. Aviation is an ecosystem, which includes ground-handling companies and other sectors of the industry. Safety starts from the ground; no matter how well-trained your pilots are, and the level of your facility, safety can be compromised on the ground,” he added.
Meanwhile, the Chairman of Swissport, John Adebanjo, emphasized that indigenous airlines must fulfill their financial obligations for services provided by ground handling companies.
Adebanjo noted that international airlines pay higher handling fees in other countries and questioned why the same standard could not be applied in Nigeria.
He also highlighted that handling companies had adhered to government directives on salary and welfare increases for staff, despite rising business costs over the past two years.
“Within the same period, the fuel price has increased, the salaries and rate of exchange have increased, among others,” he said.
Adebanjo expressed dissatisfaction with the additional 15% reduction in the new handling rates, noting that despite this adjustment, the revised threshold rates still reflected an increase of about 220%, depending on the aircraft type.
“If at all we were going to give a discount, we had wanted to give just five per cent. Then, among ourselves, we decided to give 10 per cent, but the airlines wanted 20 per cent, which we disagreed with, but unfortunately, we both agreed to give 15 per cent as a present.
“We have an understanding that in six months’ time, we will come back again. We hope that before then, the naira would have stabilised, the economy would have stabilised, and then we can take things from there,” he added.
The Executive Director of Commercial and Business Development at NAHCO, Saheed Lasisi, stated that the new approval would help ground handlers stay in business but emphasized the need for a review within the next 12 months.
He stressed that ground handlers also needed waivers to support business growth.
