The Managing Director of Aerocontractors, Capt. Ado Sanusi, has urged the Federal Government to address the pressing challenges facing Nigeria’s aviation sector, particularly the high cost of operations driven by multiple taxes and regulatory hurdles.
Speaking at a news conference in Lagos, Capt. Sanusi highlighted the need for a strategic overhaul of the aviation ecosystem to enable airlines to thrive and contribute effectively to economic growth.
High Costs and Multiple Taxation
Capt. Sanusi emphasized that while infrastructure improvements, such as modern terminals, are commendable, the industry’s core challenges remain unaddressed.
“The cost of running an airline in this country is extremely high. The multiple taxation needs to be addressed,” he said.
He stressed that airlines are overburdened by overlapping levies from various aviation parastatals, making it difficult to operate sustainably.
He called for a unified tax structure, suggesting that airlines pay a single consolidated charge that can be shared among regulatory bodies such as the Nigerian Airspace Management Agency (NAMA) and the Nigerian Civil Aviation Authority (NCAA).
“We need a single figure that scheduled airlines can pay. Let NAMA, NCAA, and others share from that. This way, airlines are not strangled by excessive charges,” he proposed.
Role of Government in Supporting Aviation
The Aerocontractors boss, urged the government to view aviation not as a revenue source but as an enabler of economic growth.
He cited Rwanda as an example, where investments in the aviation sector have significantly boosted tourism and foreign direct investment. “If aviation is seen as an enabler rather than a revenue provider, we will witness growth. Otherwise, the industry will continue to struggle,” he noted.
Criticism of Handling Charges and Anti-Competitive Practices
Capt. Sanusi also criticized the recent 600% hike in ground handling charges, approved by the NCAA, describing it as a dangerous precedent.
He argued that such increases, driven by a duopoly of ground handling companies, undermine competition and hurt the entire aviation ecosystem. “Allowing two companies to dictate prices and block new entrants stifles growth. We need a liberalized aviation industry where competition thrives,” he stated.
He called on the Consumer Protection Council, anti-competition authorities, and lawmakers to intervene and halt the practice.
“This must be stopped. We cannot allow a cartel to dictate terms in a liberalized market,” he warned.
Call for Collaboration and Reform
He reiterated the need for collaborative efforts to reform the sector. He highlighted the urgent need to reduce operational costs, streamline regulatory charges, and encourage competition. “If these issues are not addressed, the survival of Nigerian airlines remains uncertain,” he said.
