SAHCO Urges Nigerian Government for Tax Waivers Amidst Soaring Operational Costs

December 1, 2025 at 08:23 AM•2 min read

Nigeria's SAHCO appeals to the federal government for tax waivers on imported equipment and spare parts to combat rising operational costs and safeguard

Key Points

1SAHCO appeals to the Nigerian federal government for tax waivers on imported equipment and spare parts to address rising operational costs and prevent job losses in the aviation sector.
2Ground handling firms, like SAHCO, subsidize domestic airlines, with SAHCO alone investing approximately €5 million in new equipment over two quarters.
3SAHCO's Managing Director calls for single-digit long-term loans and extending existing airline incentives to the ground handling subsector to ensure industry stability.
4The company is diversifying its business by planning an aviation school, training center, warehouse, and hotel, alongside investing in eco-friendly electric ground support equipment.

Skyway Aviation Handling Company (SAHCO) Plc has intensified its appeal to the Nigerian federal government for critical tax waivers and other incentives for ground handling firms. The company emphasizes the urgent need for support, particularly on imported spare parts and operational equipment, citing escalating operational costs within Nigeria's aviation industry. SAHCO warns that without these measures, the sector faces potential job losses, undermining its vital role in national economic growth. This renewed call was made by SAHCO Managing Director, Adenike Aboderin, at the inaugural Airport Gateway Forum of the League of Airport and Aviation Correspondents (LAAC) in Lagos.

Aboderin highlighted that ground handlers are currently subsidizing services for domestic airlines to maintain industry stability and keep airfares affordable for travelers. She noted a significant disparity between the rates airlines pay for ground handling and the actual cost of equipment. SAHCO alone invested approximately five million euros in new equipment over the last two quarters, with individual units costing at least 150,000 euros. Aboderin advocated for single-digit, long-term loans for ground handling companies and urged the Nigerian federal government to extend incentives already provided to airlines to the ground handling subsector.

In parallel with its advocacy efforts, SAHCO is actively pursuing a diversification strategy to strengthen its business model. This includes plans to acquire land for an aviation school, a dedicated training center, a warehouse, and a hotel. The company is also committing to technological advancements and environmentally friendly operations, such as investing in electric ground support equipment (GSE) and implementing an environmental management system aligned with ISO 14001 standards.