March 03, (THEWILL) – Ground handling companies in Nigeria’s aviation sector have defended the recent adjustment in safety threshold rates, stating that the 15 per cent reduction from their initial demand was their contribution to the Minister of Aviation and Aerospace Development, Festus Keyamo’s Five-Point Agenda aimed at making the industry more sustainable.
The operators also called on the Federal Government to grant them duty waivers and concessionary loans to support their businesses.
Speaking in separate interviews with THEWILL over the weekend in Lagos, Chairman of the Aviation Ground Handlers Association of Nigeria, Mr. ‘Niyi Adigun, attributed the rate adjustment to the prevailing economic downturn, stressing that the aviation sector was under immense financial strain.
Adigun emphasized that the handling companies had adhered to the International Civil Aviation Organisation (ICAO) recommendations on rate reviews, which include stakeholder engagement and proper justification for price adjustments. He assured that discussions with airlines on further reviews would continue.
“What we did was right-pricing, and I appreciate the intervention of the Minister of Aviation and the Director-General of Civil Aviation, Capt. Chris Najomo. We must eliminate the master-servant relationship that exists between airlines and ground handling companies. Aviation is an ecosystem that includes all stakeholders, and safety starts from the ground. No matter how well-trained a pilot is or how advanced an aircraft’s technology may be, ground safety cannot be compromised,” Adigun said.
The AGHAN Chairman further noted that while indigenous airlines had benefited from customs duty waivers for nearly a decade, ground handling firms with significant investments had not received similar reliefs.
He described the high import duties paid on operational equipment as a major financial burden, stating that waivers would alleviate some of the economic pressures faced by handling companies.
Adigun also urged the Federal Government to facilitate concessionary loans for industry operators through the Central Bank of Nigeria (CBN), emphasiSing that “aviation is a catalyst for economic development, and every contributor to this growth must be supported.”
Chairman of Swissport, Otunba John Adebanjo, reinforced the need for indigenous airlines to pay fair rates for ground handling services, pointing out that these same airlines pay significantly higher fees when operating abroad.
“Nigerian airlines flying international and regional routes pay more for handling services outside the country, yet they resist fair pricing at home. These same airlines frequently increase airfares without consulting stakeholders, as recommended by ICAO,” Adebanjo noted.
He also highlighted that while handling companies had complied with government directives on salary increments for workers, the cost of doing business had surged dramatically in the last two years.
Adebanjo further explained that the 15 per cent reduction in the new handling rates, which now represent a 220 per cent increase depending on aircraft type, was a concession made following intervention by Keyamo and Najomo.
“Ideally, we were only willing to offer a 5 per cent discount, but we settled for 15 per cent after negotiations. However, we have agreed to revisit the rates in six months, hoping that by then, the naira and the economy would have stabilized,” he said.
Speaking on the financial burden of equipment importation, Prince Saheed Lasisi, Executive Director of Commercial and Business Development at NAHCO, reiterated the need for government support.
“We import ground support equipment worth up to $600,000, and the duties we pay are excessive. In a single year, NAHCO alone spends about $1 million on import duties for spare parts. If airlines can receive waivers, then ground handling firms should also be considered,” Lasisi stated.
He pointed out that the streamlined forex market under President Bola Tinubu’s administration had eased currency access but emphasized that handling companies required consistent financial support to sustain their operations.
Vice Chairman of AGHAN, Mr. Ahmed Bashir, commended the Minister of Aviation and the Director-General of the NCAA for facilitating an amicable resolution after almost a year of negotiations.
Bashir noted that the new rates adhered to the three ICAO principles for tariff reviews—cost recovery, stakeholder engagement, and transparency. He confirmed that an annual review process had been incorporated into the agreement to ensure rates align with economic realities.
“This resolution means that future adjustments will be between service providers and clients without requiring NCAA intervention. Ground handling companies face rising costs from electricity, fuel, labor, insurance, equipment, and forex. Reviewing economic indices yearly will ensure fair pricing for all parties,” Bashir concluded.
Anthony Awunor, is a business correspondent who holds a Bachelor of Arts Degree in Linguistics (UNILAG). He is also an alumnus of the Nigerian College of Aviation Technology (NCAT), Zaria Kaduna State. He lives in Lagos.
