Aviation
Nigerian Customs Agents’ Strike Causes Business Halt, Threatens Export Competitiveness
Businesses have come to a standstill over the past week, as importers and exporters have been unable to carry out their operations due to the withdrawal of services on 25th April by the Association of Nigerian Licensed Customs Agents (ANCLA) MMIA chapter.
This action was taken in response to a 100 percent increase in ground handling charges by the Nigerian Aviation Handling Company (NAHCO) and Skyway Aviation Handling Company,
The strike has caused a lot of frustration and discouragement to young entrepreneurs who were promised that export would be made seamless for them by the Nigerian Export Promotion Council.
Davies Chukwuneye, the Vice-Chairman of ANCLA, reported that perishable goods are piling up in facilities, and the situation is worsening for businesses.
The strike has resulted in people being unable to clear their goods, and no exporters are transporting perishable items. ANCLA has made multiple appeals to both ground handling companies to reduce tariffs, but without success.
He said “Perishable cargoes are laying waste at the facilities. Those who were not able to take their products back abandoned them. The farmers already know the situation and know they can’t keep their goods at the warehouse. So, for now, no exporter is bringing perishable goods.
“At the second week of February, the ground handlers sent a circular to the executive of ANLCA, introducing an upward review of 300 percent on their handling and other charges.
“In view of this, the union excos entered into negotiation with the ground handlers specifically to make them realise that increment at this time is ill-timed and that it will definitely have negative effects when it was still less than three years they had the last increment.” he added.
According to Seyi Adewale, the CEO of Mainstream Cargo Limited, the ANCLA strike is likely to have a major, negative long-term effect on aviation cargo and trade services in Nigeria.
Adewale recommended that airlines might opt to combine their aircraft parts in another African country and transform it into a ‘repair and return’ center, which could impact the growth of Maintenance, Repair, and Overhaul (MRO) in Nigeria.
Adewale added that Nigeria’s export of agro-products and perishables was becoming less competitive compared to Morocco. This could potentially lead to European Union clients and importers favoring more stable and predictable environments like Kenya for the procurement of these products.
In his words “We are already losing this to Morocco; non-competitiveness in export of agro products and perishables. Imagine those that want to export green vegetables, and pineapples, among others, to Europe.
“What is the shelf life of these items? EU clients and importers will surely prefer a relatively more stable and predictable environment like Kenya for procurement of these products or produce,” Adewale said.
According to Segun Ajayi-Kadir, director-general of the Manufacturers Association of Nigeria, the implications of the increase in excise duty for 2023 would result in reduced production volumes, increased illicit trade in some of the affected products, erosion of members’ market share and revenue, and inflation.
“Apart from the above challenges faced in the business environment, manufacturers also have to contend with currency devaluation and increasing inflation resulting in higher cost of production as our members have little to no access to foreign exchange at the official window and have to resort to the parallel market at an extra cost of around N300 to $1.00,” he said.
In his recommendation, he advised the government to uphold the current state of affairs concerning the excise duty hikes on these products, which have already been authorized by the government and outlined in the 2022 Fiscal Policy Measures’ three-year plan.
This situation has led to a significant negative impact on aviation cargo or trade services to Nigeria, and it may result in losing competitiveness in the export of agro-products and perishables to other countries.
The government needs to intervene in this matter to prevent the strike from generating a crisis that would be difficult to control.
An Abuja-Accra flight experienced technical difficulties mid-air on Friday, forcing it to return to Abuja, shortly after departure.
The Nigerian Safety Investigation Board (NSIB) made the disclosure in a statement, adding that it has launched investigation into what it described as a serious accident.
Director, Public Affairs and Family Assistance, NSIB, Bimbo Olawumi Oladeji stated that preliminary investigations revealed the aircraft experienced an engine number two indication issue.
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It was gathered that the aircraft, with registration number 5NKAL which was operating a flight from the Nnamdi Azikiwe Airport, Abuja (DNAA), to Kotoka International Airport, Accra (DGAA).
She explained that four persons were onboard when the incident occurred. The crew immediately requested for a diversion back to Abuja due to the engine indication.
Oladeji added that the crew managed to safely land the aircraft at Abuja Airport at 18:16 UTC.
There were no injuries reported, and all individuals on board are safe.
Nigeria has acquired 12 pre-owned Alpha Jets from the French Air Force as part of efforts to enhance the operational capacity of the Nigerian Air Force (NAF).
The deal, facilitated through SOFEMA, a French military and aeronautics company, was announced by Olusegun Dada, Special Assistant to President Bola Tinubu on via X on Thursday.
He said, “All the 12 aircraft are ready for shipping.”
The Alpha Jet, a product of Franco-German collaboration, is a versatile military aircraft designed for light attack and advanced training missions.
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Equipped to carry bombs, rockets, and missiles, the aircraft also features a gun pod for close air support.
The NAF already operates 11 Alpha Jets, but this latest procurement signals a significant boost to its fleet.
Dada also confirmed that the Air Force is expecting 24 M-346FA light attack aircraft, ordered during the administration of former President Muhammadu Buhari.
The first batch of these Italian-made aircraft is expected to arrive early next year.
Air Chief Marshal Hasan Abubakar, the Chief of Air Staff, described the acquisitions as a testament to President Tinubu’s commitment to bolstering the armed forces.
“This renewal of our aircraft fleet reflects the government’s commitment to ensuring the safety and security of Nigerians,” Abubakar said.
The announcement comes on the heels of President Tinubu’s three-day state visit to France, where he met with French President Emmanuel Macron.
The visit, which took place from November 27 to November 30, highlighted deepening ties between the two nations.
To ensure the sustainability of its expanding fleet, the Air Force has proposed establishing a local maintenance hub.
Speaking in October, Abubakar noted that six units of the M-346FA aircraft were already in production, with the initial batch of three expected to be delivered in early 2025. The full fleet is projected to arrive by 2026.
“These developments underscore the importance of creating a domestic support system for the long-term upkeep of our aircraft,” Abubakar added.
As the holiday season draws near, Aero Contractors has introduced a minimum ticket price of N80,000 for all local flights.
The move, which will last until January 2024, aims to ease the financial burden on Nigerians amid the high cost of living.
Ado Sanusi, Managing Director of Aero Contractors, made the announcement on Tuesday during a press briefing, describing the fare reduction as a gesture to help Nigerians celebrate Christmas and the New Year without the stress of steep ticket prices.
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Sanusi said, “We understand the economic hardship Nigerians are facing, especially with high ticket prices, and we know the holiday season is nearby.
“In the spirit of Christmas, Aero Contractors has introduced what we call pocket-friendly Christmas prices. These fares, starting at N80,000, will apply to all our destinations, allowing Nigerians to travel without excessive costs.”
As of Tuesday afternoon, an economy class ticket from Lagos to Abuja was priced at N99,643, while business class tickets were being sold for N189,167.
Sanusi further explained that the initiative was designed to make it easier for families to reunite during the holidays.
“This is a way for us, as an organization with a long history of serving Nigerians, to give back to our loyal customers. We want to make it possible for families to meet their loved ones during this festive season without worrying about exorbitant travel costs,” he added.
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