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High Customs duties kill ground-handling business in Nigeria—–SAHCO boss —-begs government for waivers

Eyewitness reporter
The Managing Director, Skyway Aviation Handling Company (SAHCO), a subsidiary of SIFAX Group,Mr. Basil Agboarumi, has raised serious concerns over the debilitating effects which  the high customs duties on ground-handling equipment have on the business of ground Handling companies in the country.
Agboarumi, who spoke in Lagos at the weekend, believed that for the operators of ground-handling companies to break even in Nigeria, government should give them palliatives similar to the gesture offered to airline operators in terms of duty waivers on the importation of these equipment.
He noted that, just like aircraft and aircraft parts that enjoy duty waivers are sourced in international market, ground handling equipment are similarly expensive and equally procured outside the country.
The SAHCO boss disclosed that operators of ground handling business have come together to approach government on the need to get duty waivers if they were to remain in business.
Towards this end, he revealed that they  had sent documentation and representation to the Ministry of Aviation and Nigeria Civil Aviation Authority (NCAA) in the hope that the issue can be looked at and given speedy approval and implementation.

”We felt that no matter what government is doing for the airlines, ground handling should be included and benefit from it too.

‘It is just the same way aircraft are gotten from abroad that is our own are brought in because none of our equipment is manufactured in Nigeria.

“We also place orders so that the manufacturers do them. We pay quite a lot of money to get in our handling equipment. We believe that what should be done is that same kind of waivers that the airlines are enjoying should also be extended to us to make life easier for us.

“We are taking our case to the government, Ministry of Aviation and the NCAA as the representative of government in the aviation industry.

“The last point was NCAA requesting for some information from us and some of the things that we learnt has to do with the issues have been raised in some higher places and they needed to submit data and positions.

“So we submitted our position and I believe that they have taken it from us and we are expecting a feedback from government in that regard. We believe governments should look at us.”

Agboarimi disclosed that  SAHCO spend huge sum as customs duty on most of its equipment and this could be saved and ploughed back to improve the business if waivers are granted.

“At times,  we spent as much as N36 million to clear just one equipment”  he lamented.
“It is huge. Everything we bring in. We spent N36 million to clear one of our equipment recently.
“Sometimes, you have some of our equipment that goes as much as one million dollars. We have equipment like that.

“As I talk to you, there are equipment we placed orders for since early 2020. By the time pandemic started, we still wanted to go on but we couldn’t raise funds. There was one that finished manufacturing and we couldn’t have money to pay, so they have to give it to another ground handling company.

“Sometimes, it takes about six months to produce ground handling equipment. These are some of the challenges. We fabricate those ones we have the capacity to do”

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Aviation

From 6k to 50k: The economic insensitivity of arbitrary hike in parking rate at MM2

Olutayo Irantiola

Recently, the parking rate at the Multi-storey Car Park at the Murtala Muhammed Airport Terminal 2 (MMA2), operated by Bi-Courtney Aviation Services Limited (BASL) and managed by Balosh, was arbitrarily increased.

Overnight parking, which used to be six thousand naira (N6,000) only, was increased to fifty thousand naira (N50,000) only.
What is the mathematical rationale for this type of increase?

In 2021, Balosh, the company managing the toll system within the airport, was engaged by the Lagos State Government and Lagos State University Teaching Hospital (LASUTH), and it almost resorted into a crisis within the hospital premises because one would not be able to explain the rationale for having a patient in the hospital, and one would be charged for car park.Nigerians are unable to commute by road, train, or even the waterways.

 Despite the rising cost of all modes of commuting, one is now confronted with an unjustified increase in airport parking rates.

With the rising cost of house rent cum accommodation in Lagos, people have moved to various suburbs of Lagos.

 When they have a reason to travel, the most cost-effective option is to get their vehicle to the airport, park it, travel to their destination, and return to their vehicle to get home within 3-4 days.
 When it was N6,000, everyone assumed that it was affordable and safe to keep their cars at the airport, similar to what happens at the jetties and train station.

The rising cost of JetA1 has been attributed to the rising cost of air ticket which is almost beyond the reach of an average Nigerian; the rising cost of PMS (Petrol) at this time when Iran and US war is ongoing has made people abandoned their cars while app hailing taxi services are ‘cutting’ people’s heads off while the regular airport taxi call unfriendly rates to the already overtaxed Nigerian that has not gotten an increase in salary despite the galloping inflation.Further rationalising this increase, it seems that the airport authority is now competing with the airlines- if one can afford a N300,000 return ticket, then one can also afford a N150,000 for a three-day parking at the airport.

This is not a fair deal for Nigerian travellers who are working hard to travel by air, given the imminent fear of what could go wrong on the road.

Can one liken the increase to a collaboration between the taxi unions and the airport to rip people off of their hard-earned money?

 What this means is that for anyone who cannot afford parking at the airport, you will be forced to use a taxi that is ‘seemingly’ above the law, which is in connivance with the private operators of the airport.
The enforcement team at MM2 would never clamp taxis, but they aim at private vehicles that are forced to use the car park, regardless of how many minutes one wants to use at the airport.
Beyond the exorbitant rate introduced by the airport operators for the car park, they are also on the case of on-demand, multi-category delivery platform riders who pick up food items from restaurants within the airport.
This wanton drive for revenue will kill more businesses than build a thriving economy.
Beyond the few excuses given by the operators of the car park and the airport, Nigerians need organisations that are empathetic and can feel the pulse of the people.
With the current rate, it means anyone without a driver cannot live a simple life of fueling his car at over a thousand naira per litre, drive to the airport, keep his car and return joyfully to Lagos with the intent of driving home.

This is another way of destroying the middle class in Nigeria. If you engage a friend, sibling or acquaintance without a license to drive your car away from the airport, and such a person runs into the VIO or FRSC, the problem becomes complicated.

It is expedient for the airport operators to devise a strategy to identify actual travellers, which should be based solely on their boarding passes and means of identification.

For those whose boarding passes and tally slips given at the car park entrance can be matched, they should be given a concession.

 They can deal decisively with other vehicles parked without justification. But making the car park rate unaffordable to the common man should not be allowed to stay.

There is no moral justification for overnight parking, let alone moving from 6,000 to 50,000!

I will want to implore the Honourable Minister of Aviation and Aerospace Development of Nigeria, Mr. Festus Keyamo, SAN; Managing Director of the Federal Airports Authority of Nigeria(FAAN), Mrs Olubunmi Kuku and other government agencies to please look into the matter and reduce the hardship being experienced by Nigerian travellers who need to park at MM2.

Olutayo Irantiola is a PR Consultant and Public Affairs analyst based in Lagos, Nigeria

 

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Aviation

FAAN resumes toll collection at Airports, adopts hybrid payment method 

Gloria Odion, Reporter
The Federal Airports Authority of Nigeria(FAAN) have resumed collection of toll at all its toll plazas located at the airports in the country, including Murtalar Mohammed International Airport, Lagos.
The toll suspension arose from the chaos which the new cashless payment method introduced by FAAN recently generated which resulted in long queues of motorists at these facilities.
This development has raised public outcry which necessitated the intervention of President Bola Ahmed Tinubu who directed the suspension of the cashless payment system.
However, the Minister of Aviation and Aerospace Development, Festus Keyamo, has directed the resumption of toll collection at all these plazas.
In a press statement by his Special Adviser on Media and Communications, Tunde Moshood, the Minister declared that a hybrid access gate payment should be adopted by FAAN at the toll gates located at the Airports in the country.
“Following the earlier suspension of the full cashless Access Gate payment system as directed by the President of the Federal Republic of Nigeria, President Bola Ahmed Tinubu due to the traffic gridlock it created, the Minister of Aviation and Aerospace Development met with officials of the Federal Airports Authority of Nigeria (FAAN) and senior officials of the Ministry.
“After reviewing the initial implementation and the operational challenges observed, the following decisions were reached:
” The Ministry has resolved to engage concessionaires in order to introduce a fully automated or electronic system at all access gates at our airports in order to fully and eventually eliminate cash payments.
” In the meantime, a hybrid payment system that accommodates both cash and card payments will resume at all airport access gates with effect from Friday, March 13, 2026.
” Motorists who already possess FAAN Go Cashless Cards may continue to use them until further notice.
“Other electronic payment options, including POS terminals and other approved digital channels, will also remain available.
“Members of the public and road users are encouraged to obtain and use the FAAN Go Cashless Card as the Authority continues to enhance and fully optimise the cashless payment system.
“This directive restores the previous access  gate payment arrangement whilst the Ministry continues to work on the fully automated or electronic system” the statement concluded.
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Aviation

Tension de-escalates at Lagos Airport as FAAN, Cargo agents reach truce over new tariff

Funso OLOJO, Editor
The brewing crisis over the new cargo tariff introduced by the Federal Airports Authority of Nigeria( FAAN) may have been de- escalated  as the Airport Authority and the aggrieved Customs Licensed Cargo Agents have reached a compromise over the controversial tariff.
It could be recalled the new tariff regime of N20 per kilogram introduced by FAAN has sparked off a row between the airport authority and the cargo agents who vowed to resist the increase from the initial N7 per kilogram.
Tension has heightened when the two warring parties stuck to their gun with FAAN issuing a quit notice to the residents cargo agents and a threat to demolish their associations’ Secretariat.
However sanity prevailed after about one week of stand- off between the two gladiators as they both met for dialogue on Monday February 9th, 2026.
According to the statement issued by FAAN, the two sides have reached an agreement on the proposed review of cargo port charges.
“The agreement was achieved at a stakeholders meeting held on Monday February 9th, 2026,at the MMIA Terminal 2 conference room chaired by the Director of Cargo Development and Services, Mr Lekan Thomas.
“After constructive deliberation, both parties agreed on a revised port charges of N15.00 per kilogram, representing a compromise from the earlier proposed N20.00kg and an upward review of the existing #N7.00kg.
“The outcome reflects the spirit of dialogue, partnership and  shared responsibility.
“FAAN believes the resolution will enhance ease of doing business at MMIA while supporting sustainable airport and cargo infrastructure development.
“The Authority reaffirms it’s commitment to continuous stakeholders engagement,the SEDI(safety, efficiency, development and innovation) principles and the ongoing modernization of cargo terminal facilities.
“FAAN appreciates the cooperation of the customs Licensed cargo Agents and looks forward to sustained collaboration in advancing Nigeria’s air cargo sector” the Airport Authority stated.
Dr Segun Musa, the Vice- President of the National Association of Government Approved Freight Forwarders (NAGAFF) and one of the leaders of the warring associations at the Cargo Airport, confirmed the truce.
” Yes, we met yesterday, Monday (February 9th 2026) and we agreed on N15 per Kilogram.
“We agreed with FAAN in the interest of the economy, so that work could go on.
“The situation is now normalized” Musa declared.
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