Some domestic airlines operating in Nigeria say the Federal Government’s pronouncement of zero duty and Value Added Tax (VAT) payment on importation of commercial airplanes and spare parts has not taken effect.
According to Obi Mbanuzuo, accountable manager, Dana Airline, despite Federal Government’s promise to make the importation of spare parts into the country easy and without delay, it still takes a lot of days to get the spare parts out of the warehouse, where they are stored before clearing.
Mbanuzuo says, “Dana Airline has some spare parts that arrived few days back, but as I speak with you, the parts are still at the warehouse, as they are yet to be cleared out.”
In other countries, it takes just few hours to get the spare parts of aircraft cleared and delivered to the operators, but in Nigeria, it could take weeks before operators get access to their spare parts, which could be discouraging, he says.
“If I have to pay 20 percent to 30 percent duty on spare parts, it means the policies are not just there. The best things could be to create export processing zones, so that everything that goes in and out happens seamlessly,” Mbanuzuo says.
An airline source, who craved anonymity, also says they are yet to see the implementation of zero duty and VAT payment on the importation of commercial airplanes and spare parts, saying government should be faithful to keep its policies and make them effective.
President of Airline Operators of Nigeria (AON), Noggie Meggison, says if the policy of the Federal Government on spare parts importation is implemented, it will help alleviate the cost burden of airlines and ensure safe flight operations.
Meggison says government’s support for airlines cannot be over emphasised as aviation in Nigeria has continued to be one of the key drivers of the economy, with a critical role of making Nigeria the pivot of air transportation in Africa.
