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🇳🇬 Nigeria /Economy & Trade

Labor union disruptions threaten Nigeria's economy, stakeholders warn

From ThisDay · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Outcome reported
  • Aviation stakeholders warn that incessant disruptions by labor unions are stifling Nigeria's economy.
  • Unions threatened to picket airlines over debts owed to the Nigerian Civil Aviation Authority (NCAA) for Ticket Sales Charge (TSC).
  • An agreement was reached for airlines to pay 10% of the debt upfront and the rest in installments, averting the planned picketing.

Stakeholders in Nigeria's aviation industry have issued a stern warning to labor unions, stating that their continuous disruption of airline operations is severely impacting the nation's economy. They emphasized that air transport is crucial for economic growth, facilitating the swift movement of key personnel and boosting productivity.

air transport in Nigeria would continue to drive economic growth through the swift movement of key decision-makers, investors, and business leaders between major hubs like Lagos, Abuja, and Port Harcourt.

— StakeholdersExplaining the importance of air transport to Nigeria's economy.

The stakeholders' concerns arise from a threat by the National Union of Air Transport Employees (NUATE) and the Air Transport Service Senior Staff Association (ATSSSAN) to picket airlines indebted to the Nigerian Civil Aviation Authority (NCAA) over Ticket Sales Charge (TSC). The unions noted that TSC debts have accumulated significantly, exacerbated by increased aviation fuel costs following the U.S.-Iran war, making it difficult for airlines to meet their obligations.

TSC debt accumulated to billions of naira since the US-Iran war increased the cost of aviation fuel from N900 per litre to N3, 500 per litre at the peak of the war and multiplied the cost of airline operation, which made it difficult to pay the charges as they had planned to do before the Middle East crisis.

— Article textDetailing the reasons behind the accumulated TSC debt.

However, the planned picketing was averted after meetings between the NCAA and airlines. An agreement was reached for airlines to pay an initial 10 percent of the outstanding debt, with the remainder to be paid in installments. Michael Achimugu, Director of Public Affairs and Customer Protection at NCAA, confirmed the agreement and stated that the Director General, Capt. Chris Najomo, intervened to resolve the dispute. The unions reportedly expressed disappointment with the wording used by the Airline Operators of Nigeria (AON).

Agreement was reached that the airlines will pay 10 per cent of the debt and pay the rest in instalments.

— Michael AchimuguConfirming the resolution reached between NCAA and the airlines.
DistantNews Editorial

Originally published by ThisDay in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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