Finance

NAHCO GMD seeks single digit interest loan for ground handling companies

NAHCO GMD seeks single digit interest loan for ground handling companies

LAGOS – The Federal Government has been charged to grant single digit interest loans to the ground handling companies in the Nigerian aviation industry, just like the airline sub-sector.

This is as the National Assembly has promised to assist the private organisations in the aviation sector to grow by addressing the day-to-day challenges affecting their operations.

Mrs. Olatokunbo Fagbemi, the Group Managing Director, Nigerian Aviation Handling Company (NAHO aviance), who made the call during the visit of the Senate Committee on Privatisation at the headquarters of the ground handling company at the Murtala Muhammed Airport (MMA), Lagos, on Monday, observed that the ground handling companies still assess loans at double digit interest rate.

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She explained that this was affecting the operations of the ground handling companies in the sector, stressing that with single digit interest on loans, the ground handling companies would invest more resources on acquisition of state-of-the-art equipment.

She said: “We want government to look at waivers on duties for the ground handling companies; we can have tax incentives and tax relieves. 

“We are also looking at below 10 per cent interest loan, similar to what the airlines have in the aviation sector because we also buy our parts and equipment in foreign exchange.

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“It is even worse off for us; airlines can sell their aircraft, but we can’t sell any of our equipment. They can choose to convert passenger aircraft to freighter, we can’t do that. All we can do is to scrap it.”

Fagbemi further appealed to the National Assembly to accelerate the passage of the Civil Aviation Act currently before it, saying that the passage would enhance growth in the industry.Loading…

“The fact is that we asked that the Civil Aviation Act has to be completed as soon as possible. Once this is addressed, it will open up opportunities within the civil aviation industry. As you know, we support the airlines within the civil aviation sector and whatever benefits the industry, ultimately will trickle down to us.

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“If you have a better regulatory framework, it will benefit the airlines. Whatever benefits the airlines, benefits us. We depend on the airlines. That is why we want the airlines to be stronger and stronger airline sub-sector is good for us. It may not be direct to NAHCO, but whatever benefits the industry benefits us,” she said.

Independent

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