NAHCO Dialogues with Stakeholders on Planned Tariff Increase

The Nigerian Aviation Han­dling Company, NAHCO, Plc said it is still consulting with clearing agents and other necessary stake­holders in the country’s aviation industry on the possible upward review of its tariff.

The spokesman for the ground handling company, Mr. Tayo Ajakaye in an interview with our correspondent in the headquar­ters of the company at the Mur­tala Mohammed International Airport, MMIA, Lagos, said that the new tariff would not take ef­fect until the company met with all the stakeholders involved in cargo business in the industry.

He explained that the company was cautious of the happenings in the industry generally and would not want to create unneces­sary tension in the system, main­taining that the customs clearing agents have always been partners in progress with the ground han­dler.

He however said that the com­pany needed to review its existing tariff in order to meet up with the current challenges in the sub-sector, lamenting that the recent devaluation of naira by the Cen­tral Bank of Nigeria, CBN, was having an untold effect on its ac­tivities.

He said, “We need to increase tariff to meet up with the cur­rent challenges in the system. As you are aware, naira has fallen against the United States Dollars and most of our equipment are sourced with foreign currencies. Our clients want improved in­centives, which we will regularly give to them, but we can’t do this with the current tariff.

“We are still consulting with all the necessary stakeholders on this. For the fact that we said we are going to review doesn’t mean we should just implement it with­out carrying them along. For us to increase tariff, there is a noti­fication period, which we are still doing. We are mindful of the rela­tionship with our clients. So, we want to take it easy with them.”

At present, a kilo of imported cargo goes for N40 per kilo; N38 for NAHCO while the leader­ship of the clearing agents; As­sociation of Nigerian Licensed Customs Agents, ANLCA and National Association of Govern­ment Approved Freight Forward­ers, NAGAFF, get N2 per kilo. This is apart from the 5 per cent Value Added Tax, VAT.

The Ag. Managing Director of the ground handling company, Mr. Nobert Bielderman had said recently in Lagos that the ground handling business in the country was facing a hard time due to the economic challenges in the coun­try.

He posited that to safeguard the industry from collapse, all players would have to make sac­rifices from all ends through mutual respect, understanding, maturity, tact, long term view and professionalism.

He said that NAHCO expected appropriate price adjustments in sync with current realities and urged its clients to continue to support and show continuous loyalty to its brand.

He added, “The airlines must know that there is a limit to down­ward price review of ground handling charges in order not to eventually compromise our safe­ty orientation and we hereby use this medium to look elsewhere for cost saving strategies as it is no longer efficient or safe to al­ways turn to the ground handler for price cuts.

“We also call on ANCLA, NAGAFF, trade unions and other associations to be very under­standing this period in the best interest of all industry. We must sit down and together agree on the best model and way to sus­tain our business balancing all interest concerns. We have both worked together in even more trying periods and this time will not be different.”