Nigerian airlines and ground handling firms clash over a proposed 300% fee hike, as the NCAA pushes for resolution before Wednesday’s deadline

A fierce dispute has erupted between Nigerian domestic airlines and ground handling companies over a sharp increase in safety threshold handling charges — despite the Nigeria Civil Aviation Authority’s (NCAA) intervention.

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The acting Director-General of the NCAA, Capt. Chris Najomo, attempted to mediate the conflict during a meeting last Friday, but his efforts fell short. Both parties were directed to meet again and reach a resolution by Wednesday.

The ground handling companies introduced a revised tariff in 2024 — the first increase in three years — raising charges by about 200% to align with rates across other African countries.

If implemented, the cost for handling a Boeing 737 could surge from N70,000 to between N200,000 and N300,000, while rates for smaller aircraft like the CRJ could rise to between N150,000 and N250,000.

Despite domestic airlines increasing ticket prices by over 700% in the last three years, handling companies claim their fees have remained stagnant, prompting this steep adjustment.

Airline operators, represented by the Airline Operators of Nigeria (AON), argue they were not properly consulted before the new charges were proposed.

They also criticized the hike, alleging the increase could be as high as 600%, further straining an industry already burdened by rising operational costs and multiple government charges.

Aero Contractors Managing Director, Ado Sanusi, warned that the sudden and significant increase could destabilize Nigeria’s fragile aviation sector.

On the other side, ground handling companies maintain that the increment is closer to 300% and is necessary due to the rising cost of imported ground support equipment and the continued devaluation of the naira.

Aviation consultant Chris Aligbe dismissed allegations of price-fixing, emphasizing that Nigeria has multiple handling companies — including Butake Handling Company, Skyway Aviation Handling Company Plc, and Nigerian Aviation Handling Company Plc — which charge different rates.

“The idea that they’re forming a cartel or engaging in price-fixing is unfounded,” Aligbe said. “Their rates still vary, even after this proposed increment.”

With both sides standing firm, the NCAA has given them until Wednesday to reach a compromise. All eyes are now on this crucial meeting, which could determine the future cost structure of Nigeria’s aviation industry and its impact on domestic flight operations.