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Reps Halt 150% Hike On Ground Charges For Airlines
The House of Representatives has directed the Nigeria Civil Aviation Authority (NCAA) and Aviation Ground Handlers Association of Nigeria (AGHAN) to put on hold, an approved increase of 150per cent ground rates for airlines operating in the country.
The Chairman of the House Committee on Aviation, Hon Nnolim Nnaji(PDP-Enugu), gave the order at an investigative session with the NCAA, AGHAN, Airline Operators of Nigeria, AON and International Air Transport Association (IATA).
Earlier in the session, Nnolim had said, “We invited them to look at this and see what will come out of it. People have started flying and we don’t want a situation where we will get into trouble. If the ground charges are increased, flights will drop and it will affect the industry.
“We know that there is a need to increase or reduce, but decisions on issues like this, cannot be taken in isolation. It is the DG of the NCAA, that was supposed to speak on this issue, but since he is not here, we will talk with the directors”.
He, however, later added that “for now, let us maintain the status quo(there shouldn’t be a hike)”.
The hearing was adjourned to next Wednesday for further deliberations on the matter.
Earlier in his submission, on behalf of the President of AON, Alhaji Abdulmunaf Yunusa Sarina; the President of Air Peace, Chief Allen Onyema; kicked against the hike, insisting that it was unacceptable to airlines.
He stated in part that, “The Airline Operators of Nigeria(AON), is deeply concerned by the potential impact the recent approval granted by the Ministry of Aviation and the Nigerian Civil Aviation Authority (NCAA), to Ground Handling Service Providers, to increase Ground Handling Charges, will have on the air transport industry and the nation at large.
“The new ground handling charges, which are expected to take effect from October 1, 2021, for international flights and January 1, 2022, for domestic flights, have been increased by an astronomical margin of between 100per cent and 1,200per cent.
“Put into perspective, international ground handling charges which used to be $400 are now $5,000 depending on the aircraft type. Also, domestic ground handling charges which used to be from N10,000 pee flight will now increase to between N20,000 and N70,000 depending on aircraft type.
“Sir, while the Ground Handling Companies May have their argument why they believe such an increase is necessary, we are of the opinion that the timing is rather ill-timed and unfortunate in the light of the fact that the aviation industry is barely trying to find its footing and is yet to recover from the negative impact of the Covid-19 Pandemic which continues to ravage the industry globally”.
He lamented that, “Airlines ordinarily are, as of today, burdened with over 37 multiple taxes, charges and levies inflicted on them by various government agencies. And this already puts airlines in a very difficult situation”.
According to him, “while airlines are finding a way to get the government to streamline these multiple taxes and ease the pressure on Nigerian travellers in order to jumpstart the economy, the recent increase in ground handling charges, will only serve to inflict additional pains and increase cost on the airlines as well, as the Nigerian passengers whose disposable income, have been stretched to an elastic limit.
“The Ground Handling Companies seems to be insensitive to the plight of the Nigerian travelling public in view of the fact that this additional cost, will end up being passed on to the customers who have already reached their elastic limit because of the harsh economic situation”.
Mr Samson Fatokun, who spoke on behalf of IATA, also kicked against the planned hike, as he decried that airlines, were already “In Survival Mode, due to devastating Covid-19 impact”.
He told the committee, that revenue from the industry “Dropped by 66% in 2020 vs 2019 in Nigeria”, as according to him, “domestic and foreign airlines are facing restricted access to Foreign Exchange, as $171million airline funds are blocked in Nigeria”.
He also told the committee that the Federal Airports Authority of Nigeria (FAAN), increased has also imposed “Passenger Service Charge by 100per cent in 2020”, in the face of “inadequate Airport Infrastructure”.
Fatokun recommenced that the stakeholders should “Allow time for bilateral negotiations between individual airlines and Ground Handling Companies”.
Vice President of AGHAN, Ahmed Bashir Gulmah, who spoke on behalf of his President, Mr Olaniyi Adigun, insisted that the hike was justified.
According to him, “The last one handling rates were reviewed in Nigeria, was in 1986 about 35 years ago! This was at a time when the United States dollar was 80k, but today, as we all know, a dollar is over N412”.
The association requested “the cooperation of the National Assembly (Committee on Aviation) to support and favourably consider the new safety threshold handling rates, which will take effect from October 1, 2021, for international operations and January 1, 2021, for domestic operators”.
The Rivers State Investment Promotion Agency (RSIPA) has unveiled measures to enthrone ease of doing business and win back the confidence of the business community.
The Director-General of the Agency, Dr Chamberlain Peterside, unveiled the plans at the Breakout Session of RSIPA at the ongoing 18th Port Harcourt International Trade Fair, at the Obi Wali International Cultural Centre, in Port Harcourt.
Dr. Peterside said the agency was poised to free the state from accumulation of wrong narratives that branded it over the years as unsafe for business.
He, however, admitted that many things had gone wrong in the past where regulators joined to make the business environment difficult for investors.
He announced that the agency was rather focused on actions, solutions, and results as adopted in the mission statement of the Board.
“Our task is no mean feat. We are dealing with the perception risk that over several years branded the state as unsafe. We are also faced with the challenges of dealing with the lack of cohesion amongst MDAs, policy inconsistencies, multiple taxation, incessant harassment by miscreants, red tape and delays in obtaining operating permits, high cost of operations and opaque public sector,” he said.
“It is about listening to the investors in the field and ensuring that MDAs are carried along, hence the imperative for the setting up of our One-Stop-Center”, he added.
In his remarks, the Commissioner for Commerce and Industry, Warisenibo Joe Johnson, who represented the state governor, said the Fubara administration was ready to listen to the business community to see ways of reducing impediments to investments.
He listed the stages of actions being undertaken by the governor as outlined in his 37-page blue print to revive the economy of Rivers State.
The Mayor of Housing, My-ACE China, who was presented at the event as a star investor and promoter of Rivers State reputation, said for the plans of the investment promotion agency to materialize, an enabling law should replace the Executive Order that established the Rivers State Investment Promotion Agency.
He said this would insulate the agency from political instability and remove fear in the minds of investors about its sustainability.
According to him, protection precedes promotion and Local Direct Investment (LDIs) is what attracts and promotes Foreign Direct Investment (FDIs).
“It is the rat at home that reveals to the one in the bush that there is fish in the kitchen”, he added.
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?The Mayor of Housing who is also the CEO of the Alesa Highlands Sustainable Green Smart City said that Port Harcourt is like a business empire under lock and key because it is not protecting its own and also not promoting its own enough for investors to come in.
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?In the area of land documentation and inventory, China urged Rivers State Government to borrow a leaf from Abuja and adopt the use of Geographic Information Systems (GIS) in dealing with land and property registration and documentation for ease of doing business.
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?He said Lagos understood the power of business information, adding “this creates the impression that if you are not doing it in Lagos, you are not doing it in Africa.
“We need to shout louder than Lagos, because we need more investments than Lagos and the structural integrity of Abuja. When you marry both, Rivers State would be wonderful and become green with investments,” he said.
In her speech, the President of Port Harcourt Chamber of Commerce, Industry, Mines and Agriculture (PHCCIMA), Dr. Chinyere Nwoga, called on the state government to look into the menace of parked trucks now turning Trans-Amadi into a risk zone.
She outlined the activities of the PHCCIMA and invited investors and businesses to the Port Harcourt economic hub, saying peace has returned.
The Director, Investors Relations of the Nigerian Investment Promotion Council (NIPC), Mrs Lovina Kayode, urged Rivers State to make haste and catch up on Ease of Doing Business, saying the Council has come to help businesses in the state.
Mrs Kayode, who represented the Executive Secretary/CEO of NIPC, Aisha Rimi, commended the Mayor of Housing and his counterpart, Mr. Oliver Biedima of Rainbow Heritage Group, for their decision to invest in Rivers State, saying it is a proof that Rivers State is safe for investors and their investments.
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In his remarks, Oliver Biedemi of Rainbow Heritage Group urged government to give the private investors chance to develop the economy, saying ordinarily government does not have the funds to develop the economy.
Happy Birthday Chief Barr. Nyesom Ezenwo Wike CON
Honourable Minister Federal Capital Territory
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We’ll Drive Tinubu’s Vision in Rivers With Vigour – Fubara …Inaugurates Dualized Ahoada/Omoku Road ….Debunks Rift With RSHA
Rivers State Governor, Sir Siminalayi Fubara, has stated that he will lead Rivers people to galvanize support for President Bola Tinubu to drive the vision and objectives of the Renewed Hope Agenda in the State with vigour.
The governor, who joined the ruling All Progressives Congress (APC), on Tuesday, explained that his decision to join the APC was not for personal interest but for the overall benefit of Rivers State.
Fubara disclosed these while inaugurating the extension of the dualized Ahoada/ Omoku Express road in Ahoada East and Ogba Egbema Ndoni Local Government Areas of Rivers State.
He commended the contracting firm, Julius Berger, for timely delivery of the project, saying the project is a campaign promise fulfilled which will bring economic benefits to the people and tackle issues of insecurity associated with the route.
He said his administration has remained focused in delivering democratic dividends in the state despite facing glaring challenges.
The governor thanked the people of Ahoada East and Ogba Egbema Ndoni Local Government Areas for their continuous support, and urged his supporters to remain steadfast and also support President Tinubu who he said, has demonstrated love to Rivers State as a father.
Fubara denied having rift with the Rivers State House of Assembly, stating that his meeting with the lawmakers was stalled as a result of delay in the agreed meeting to be convened by former Governor Nyesom Wike and other stakeholders for him to meet with the state lawmakers.
“I have made every effort to meet with the Assembly members, but it is not within my leadership to initiate the meeting process.
“The arrangement was for my leader, Wike, and the elders led by Anabraba to call for a meeting with the the lawmakers.
“I’m a gentleman and principled. I can’t go behind to call them when we’ve already agreed. Whoever that tell them that I don’t want to meet with them, or I rejected proposal meant for them isn’t saying the truth,” Fubara said.
The Permanent Secretary of the Rivers State Ministry Works, Mr Austin Ezekiel-Hart, who gave the project description, said the delivery of the project was a fulfillment of long time dream by the people of Ahoada East and Ogba Egbema Ndoni Local Government Areas.
He said the road was previously a single lane and has now been dualised to 14.6 meters wide, complete with solar-powered streetlights with drainages.
He said the road significantly would reduce travel time between Ahoada and Omoku while improving economic activity in the region.
In his welcome address, Chairman of Ogba-Egbema-Ndoni Local Government Area, Hon. Chuku Shedrack Ogbogu, described the road as a symbol of unity, oneness, and development, thanking the governor for fulfilling his campaign promises.
On his part, the Managing Director of Julius Berger, Engr. Peer Lusbash, said the project was awarded to his company in 2023 with a completion period of 18 months which was achieved in best quality.
He added that Julius Berger enjoyed a good support from the Fubara administration, and assured to complete all ongoing projects being handled by Julius Berger on specification, especially the Ring Road project which is a legacy project.
