Multiple charges paid by airlines not aviation-related

The Nigeria Civil Aviation Authority (NCAA) has confirmed that most of the charges paid by airlines operating in Nigeria are not aviation-related.

This was just as a document sighted by Daily Trust indicated that there are 38 charges listed as NCAA and service provider charges.

Out of these are statutory charges like the five per cent Ticket Sale Charge (TSC) and Cargo Sale Charge (CSC).

Some of the charges include five  per cent VAT paid to the Federal Inland Revenue Service (FIRS), landing and parking charges paid to the Federal Airports Authority of Nigeria (FAAN), Cargo Service Charge and Airport Space Rent.

Other charges paid to FAAN include fuel surcharge for marketers, electricity, aviobridge and check-in counter bridge.

Out of the 38 listed charges, about 11 are listed for airlines.

Daily Trust reports that the International Air Transport Association (IATA) had last week said over 27 charges paid by airlines were not sustainable, even as it noted that the Lagos and Abuja airports were some of the most expensive airports in Africa.

The DG NCAA, Capt Musa Nuhu said: “I think the Ministry of Aviation and Aerospace Development established a committee to look at these multitudes of revenues to see how they can be streamlined. But what we need to understand is that a lot of these charges are not from the aviation agencies, but are more in the cargo area.

“All sorts of people, some are illegally making these charges. We will consolidate and see where we can streamline and merge those charges and see what can be done.

“Like in Lagos, there are so many charges, you want to export your cargo, there are so many charges. By the time you pay those charges, your products are not even competitive anymore. That is why you see a lot of planes bringing in cargo, and they leave empty out of Nigeria, because exports are not viable and lots of these are charged by plethora of these agencies. It is really hurting us.”

Speaking on the issue, aviation analyst, Group Capt John Ojikutu stated that aviation charges were few, which included the statutory charges.

For instance, he pointed at the VAT which is paid to FIRS, adding that airlines mostly paid for statutory charges to the aviation agencies but that others were paid to other service providers like the ground handling companies.