Labour unions are increasingly being used as an enforcement mechanism in commercial and regulatory disputes involving government aviation agencies and private operators. This development raises questions about due process, investor confidence, and the proper boundary between industrial relations and regulatory enforcement, OLUSEGUN KOIKI reports.

A troubling circle has increasingly defined industrial relations in Nigeria’s aviation industry in recent years. Disputes that ought to be resolved through contracts, regulatory processes, arbitration, or the courts are frequently taken over by labour unions, who have become the enforcement arm of government organisations in the sector.

The latest manifestation occurred on August 11, 2026, when aviation unions disrupted operations at some airlines over the controversial five per cent Ticket Sales Charge (TSC) remittance dispute.

The five per cent TSC is a statutory charge collected on tickets originating in Nigeria and shared among five aviation agencies. The Nigeria Civil Aviation Authority (NCAA) collects the charge under the 2022 Civil Aviation Act, with proceeds shared among five agencies.

Many stakeholders in the sector expressed worries that the unions have become the instrument through which government agencies enforce contractual or statutory claims against private investors and service providers.

They observed that when investors see a disagreement between a government agency and a concessionaire escalate into a physical takeover of facilities, picketing, operational disruptions, or threats to shut down businesses, the message they receive is potentially more damaging than the original dispute.

They also expressed regret that, over the years, the unions had acted as an arbiter between government agencies and their business partners, including airline operators.

For instance, on February 3, 2020, the Federal Airports Authority of Nigeria (FAAN), through the unions, had forcefully terminated the existing contract of Integrated Intelligent Imaging West Africa Limited, popularly known as I-CUBE, its concessionaire at the tollgate of the Murtala Muhammed Airport (MMA), Lagos.

The unions argued that the concession had expired and that FAAN workers previously employed at the facility had become jobless. They consequently took control of the toll collection points and deployed FAAN commercial staff to operate the facility. It became a physical takeover of a commercial facility while a contractual disagreement was still ongoing.

However, I-CUBE went to court to challenge its dislodgment from the access gate, alleging a breach of the agreement and a forcible takeover. It also accused union members of vandalising its property and threatening its officials.

Earlier, in April 2012, aviation workers, through their various unions, protested against Maevis Nigeria Limited, a concessionaire engaged by FAAN to provide airport operations management systems at the international airports in Lagos, Abuja, Kano, and Port Harcourt.

The concession involved a sophisticated airport operations management system, including airport databases, common-use terminal equipment, departure control systems, self-service kiosks, check-in facilities and an automated pricing and billing system.

FAAN terminated the concession under contentious circumstances and aviation workers subsequently staged demonstrations in support of the decision.

The following day, aviation workers under the Air Transport Staff Senior Services Association of Nigeria (ATSSSAN) and NUATE protested against any proposed return of Maevis to the airports.

Also, Arik Air, under the former management led by Arumemi Johnson-Ikhide before the takeover by the Asset Management Corporation of Nigeria (AMCON) in 2017, experienced various operational disruptions due to industry unions.

In December 2016, aviation unions shut down Arik Air’s operations for a day over labour-related issues. In March 2017, NUATE, ATSSSAN, and the National Association of Aircraft Pilots and Engineers (NAAPE) threatened another shutdown and subsequently disrupted the airline’s operations, among other disruptions.

The unions insisted they were fighting for workers’ interests, while some of the workers said they had not mandated the unions to picket the airline.

Besides, Virgin Atlantic withdrew its brand and began divesting its stake in Virgin Nigeria in 2009 because of severe political friction with the Nigerian government, terminal relocation disputes, and heavy financial losses.

Virgin Atlantic Airways’ withdrawal from Virgin Nigeria eventually dimmed the wings of an airline positioned as a vehicle for rebuilding Nigeria’s aviation fortunes.

Like others, the unions disrupted the operations of the airline, which was formed in 2004.

Apart from the above, Bi-Courtney Aviation Services Ltd (BASL), operators of Murtala Muhammed Airport Two (MMA2), Lagos, has had its facilities picketed twice – in 2018 and 2022 by the industry unions.

Also, Overland Airways, Aero Contractors, Bristow Helicopters, Nigerian Aviation Handling Company (NAHCO) Plc, Skyway Aviation Handling Company (SAHCO) Plc, catering companies and several investors in Nigeria’s aviation industry had at different times tasted the wrought of industry labour unions and at times with the fervent support from their parent unions – Nigeria Labour Congress (NLC) and Trade Union Congress (TUC).

All these disruptions and abrupt terminations of ongoing concession agreements have led to about 65 legal cases instituted against FAAN alone, costing the authority billions of naira annually to prosecute.

Stakeholders’ Verdict
Commenting on the issue, Director, Research, Zenith Travels and Consult, Olumide Ohunayo, criticised aviation agencies’ reliance on unions to resolve disagreements with concessionaires and business partners.

Ohunayo said that the practice had contributed to the growing culture of picketing and industrial disruptions in the sector.

Ohunayo said the repeated use of unions by government agencies to settle corporate disagreements had gradually emboldened labour organisations to interfere in disputes that ordinarily should be resolved through administrative, contractual or legal channels.

Ohunayo confirmed that aviation unions had, in the past, been deployed in disputes involving Virgin Nigeria, Maevis Nigeria Limited and I-Cube Nigeria Limited, among others.

He said: “The same unions had no business with Virgin Nigeria using international airports in Lagos and Abuja for their domestic use, but they were used to kick Virgin Nigeria out of the international airport wings. Virgin Atlantic pulled out of the Virgin Nigeria deal because of that issue.

“Also, they were used against Maevis Nigeria Limited out of the FAAN negotiation. They were also used against the tollgate concessionaire, I-Cube Nigeria, by one of the agencies a few years ago, and the same unions seized all their machinery.

“You have the legal power within your hands. You have the Economic and Financial Crimes Commission, the police and others. Yet, you use the unions to attack your business partners.”

He called for stronger institutions and clearer dispute-resolution mechanisms within the aviation sector, stressing that government agencies must distinguish between legitimate industrial relations issues and commercial disagreements.

Also, the African Representative of Moov Airways AG, Lanre Bamgbose, warned that such practice could undermine confidence in Nigeria’s business environment and discourage investment.

Bamgbose argued that government agencies have clearly defined powers under their respective establishment acts and should follow due process whenever compliance or regulatory issues involve investors.

According to him, regulatory agencies should issue notices, enforce sanctions and pursue other remedies provided by law rather than encourage or deploy union action against investors.

He said: “It is wrong and absolutely reckless for any government agency to resort to unions to achieve what it could not lawfully accomplish through its statutory powers.

He urged government institutions to stay within the confines of their enabling laws, saying this was essential to building trust between the government and private investors.

Bamgbose said the reported involvement of unions in disrupting air services in Lagos and Abuja recently, if established, would be an unfortunate development and an embarrassment to the country.

According to him, businesses already operate with several risks, including foreign exchange volatility, high operating costs, infrastructure challenges, and regulatory uncertainty, and should not be subjected to additional risks arising from industrial actions allegedly triggered by government agencies.

He said this action also raises the cost of doing business in the country, and regretted that aviation was particularly vulnerable to such disruptions because of its extensive economic linkages.

Bamgbose maintained that Nigeria could not build a competitive economy on uncertainty, insisting that the operating environment must be anchored on the rule of law and predictable regulatory processes.

While agreeing with workers’ constitutional right to freedom of association and unionisation, Bamgbose maintained that these rights did not give labour organisations unlimited power to override existing laws.

He also criticised what he described as leadership failure within the aviation regulatory system, particularly if government agencies were found to have encouraged union intervention in matters that should ordinarily be handled through established regulatory and legal procedures.

He recalled previous disputes involving aviation investors and unions, citing the Arik Air cases as an example of how industrial action and regulatory disputes could become prolonged and eventually end in court.

Unions debunk allegation of sponsorship
However, the General Secretary of NUATE, Frances Akinjole, defended the position of the unions, saying that no one could use them to settle scores with airlines or any other organisations.

Akinjole insisted that the unions were compelled to act to protect workers’ interests and the financial stability of aviation agencies.

According to him, such claims were either born of ignorance or motivated by pecuniary interests, and he maintained that neither ATSSSAN nor NUATE had been used by any government agency before the unions began their campaign for improved funding and conditions of service in the sector.

Akinjole argued that the unions had fought for years to secure improved and limited conditions of service for workers in the aviation agencies, adding that they would not sit back while funds required to implement the agreements were withheld.

He added: “The main source of funding for the agencies is these charges on passengers through the tickets and cargo. The agencies do not draw operational finances from the Federal government. Instead, they remit whatever they can make through their cost-recovery endeavours.”

Akinjole further wondered why existing mechanisms for enforcing the remittance of the funds had failed to resolve the dispute, adding that the unions would be irresponsible if they ignored warnings from their members about the potential consequences of continued underfunding of aviation agencies.

He also dismissed the claim that the unions targeted Air Peace during their recent industrial action, noting that the airline was selected to commence the action because it had the highest outstanding obligations, while its management had allegedly repeatedly challenged the unions’ ability to take action against airlines.

“We also have the choice of shutting down all the debtor and anti-union airlines at the same time, but we decided to do it in phases in order to lessen the collateral damage to passengers and the Nigerian economy,” he said.

He called for genuine dialogue among airlines, unions, regulators and other stakeholders, stressing that mutual respect should guide the resolution of industrial disputes.

Also, the Deputy General Secretary, NUATE, Odinaka Igbokwe, debunked that the unions were used against any organisation.
According to him, the TSCs were part of the Collective Bargaining Agreements (CBAs) the unions had with agency managements, noting that once the management could no longer pay wages and allowances, it would affect the unions’ members.

Igbokwe said that airlines’ withholding of charges was of utmost interest to the unions.

He added: “Broadly speaking, in the trade union movement, there are two types of disputes we engage in – disputes of right and disputes of interest. Disputes of right are issues arising from or covered by CBAs, legislation – local or international. We will go to court for these.”

To resolve future crises, Igbokwe canvassed an automated collection system that would enable seamless distribution of charges to beneficiary aviation agencies.