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.
The Nigerian Civil Aviation Authority (NCAA) has taken action by suspending the permits of three private jet operators due to their involvement in commercial flights.
Chris Najomo, the Acting Director General of the NCAA, issued this suspension during a briefing to all airlines on Tuesday.
Additionally, Najomo ordered a re-evaluation of all PNCF permits within a 72-hour timeframe.
The head of the NCAA stated that Festus Keyamo, the Minister of Aviation and Aerospace Development, had instructed the discontinuation of private jets’ commercial use in 2023.
Despite this directive, the operators persisted in their commercial activities.
Najomo said “Subsequently, in March 2024, the NCAA had issued a stern warning to holders of the permit for non commercial flights, PNCF, against engaging in the carriage of passenger cargo or mail for hire and reward.
“The Authority had also deployed its officials to monitor activities of private jets at terminals across the airports in Nigeria.
“As a consequence of this heightened surveillance, no fewer than three private operators have been found to be involved in violation of the annexure provision of their PNCF and Part 9114 of the Nigeria Civil Aviation Regulations 2023.
“In line with our zero tolerance for violation of regulations, the Authority has suspended the PNCF of these operators.”
Minister Festus Keyamo has urged the Nigerian College of Aviation Technology in Zaria, Kaduna State, to create new solutions that can speed up the training of skilled air traffic controllers.
This call comes as Africa anticipates a need for 4,203 new air traffic controllers by the year 2037.
The minister made this statement on Wednesday during the 34th IFATAC Africa and Middle East Regional meeting in Abuja.
Addressing the gathering, the minister noted that the goal of training 4,203 new air traffic controllers aligns with the projection from the International Civil Aviation Organization (ICAO).
He further affirmed the ministry’s commitment to offering full support to NCAT, ensuring it not only meets but surpasses its mandated duties and roles.
He said “ICAO projects that by the year 2037, Africa will require 4,203 new air traffic controllers. The onus rests on the Aviation College of Aviation Technology (NCAT) to develop innovative ideas solutions to accelerate the training of new and proficient air traffic controllers.
The minister, represented by acting director Michael Chiko from Air Safety and Administration, highlighted the rapid evolution of the air traffic control profession.
He stated “The profession of air traffic control has evolved rapidly, transitioning from simple flag signalling to sophisticated technologies. This evolution facilitates management of the surging number of aircraft traversing our
skies daily.
“As a vital, indispensable component of air safety, air traffic controllers are responsible for the safe, orderly and expeditious flow of air traffic. Therefore, I am not unaware of the critical role you play and invariably, the heavy burden you bear.
“This burden is compounded by increased air traffic, workforce shortages, technological shifts; necessitating rigorous training regimes.
“More so, with the emergence of unmanned aerial vehicles, reshaping dynamics and challenging the norm, it is thus paramount to prepare for the future and indeed Nigeria like other countries must prepare for the future.” he added
During the event, Mr. Lawrence Pwajok, representing Engr. Mohammed Odunowo, the managing director of the Nigerian Airspace Management Agency (NAMA), emphasized the relevance of the 34th IFATCA Africa and Middle East Regional meeting’s theme, titled ‘Shaping the Future: Trends and Insights On ATC Training for Tomorrow’.
Pwajok highlighted the significance of this theme, especially as air traffic control commemorates 100 years since its inception.
He suggested examining the historical perspective of air traffic control, tracing its origins from Croydon airport a century ago to its present form in modern airports like Dubai, Istanbul, JFK, Charles De Gaulle, among others.
This historical comparison aims to provide insights into the potential trajectory of the future air traffic control system over the next century.
He added “It is obvious that the future air traffic management system will be characterised by extensive application of automation, digitization and artificial intelligence.”
Festus Keyamo, the Minister of Aviation and Aerospace Development, underscored the obligation for airlines to provide compensations in cases of flight cancellations and delays.
Festus Keyamo conveyed this directive during a meeting with the heads of agencies affiliated with the ministry on Tuesday.
He said, “We are not deaf to the cries of Nigerians about delays and canceled flights. The law is there and we are looking at how to enforce those laws for compensation of Nigerians who bear the brunt of cancellation of flights and disrupting the activities.
“The process of grounding the airline or taking the airlines to court will create more problems.
“So if the reason for the delay and cancellation of flight is their fault they must pay compensation. And what I am suggesting is that if they don’t get cash back they must get some rebate when they buy next ticket.
“I have set up a committee to look into it such that they can generate a code that they can use when they want to purchase the next ticket.
“We are concerned about the passenger satisfaction and the safety of the air travelers,” he said. The minister directed the Director-General of the Nigerian Civil Aviation Authority to prepare a weekly catalogue of canceled flights.
He further instructed the Nigeria Safety Investigation Bureau to finalize investigations into all air accidents and mishaps within the upcoming 10 days.
He said: “For the recent incidents that happened recently, some minor, and others classified as serious incidents although there were no fatalities. The NSIB is investigating these incidents and I have directed them that within 10 days from today they must submit their report of the incidents and what actually transpired.” he added
Tinubu Confers GCON On Awujale
JUST IN: Yahaya Bello To Present Himself For Arraignment
House of Reps Member, Isa Dogonyaro Passes Away
JUST IN: Court Denies Yahaya Bello’s Plea To Halt Fraud Trial
On SYNLAB Nigeria’s Secured Patient Portal, Test Result Delivery’s Safe Alternative
Leverkusen Clinch Final Spot After 22 Years
Sahara’s Tonye Cole resigns from GPHCDA
Oando opens ultra-modern petrol station in Lagos
Niger Delta Avengers: President Buhari Reads riot Act …considers the carrot and stick option
Adeosun: We are investing in infrastructure to grow the private sector
Shell launches Nigeria campaign on energy efficiency
