DECLARATION OF LONG AWAITED STATE OF EMERGENCY IN NIGERIA’S AVIATION SECTOR.. MOVING FROM THEORIES TO CONCRETE ACTIONS AND DELIVERABLES…

 

Nigeria’s huge endowed territory coupled with its large population estimated at over 200 million people, should of necessity be of great advantage if well harnessed and situated in the context of Nigeria’s perennially under-performing Aviation sector with Governments coming and going with, little progress recorded in the sector especially in the last 24 years of democratic rule…We have for too long a time, continually heard of the endless roadmap in the aviation sector drawn by the Government and little implementation with Political heads of the Federal Ministry of Aviation known as Ministers who come and go, this piece is advice to the new Ministry of Aviation and Aerospace development led by the Minister Festus Keyamo SAN, notable stakeholders have described Nigeria’s aviation sector as a goldmine waiting to be fully explored and tapped owing to its international dimension with the role of IATA and ICAO two major bodies that regulated the international aviation space.

In my opinion rather than continuously lamenting over our perceived shortcomings, it is in will achieve the desired progress we highlighting the missing gaps in the Aviation industry.

ABSENCE OF A NATIONAL/FLAG CARRIER FOR OUR LUCRATIVE ROUTES.

1. Since the collapse of Nigerian Airways over 20 years ago due to corruption and mismanagement, the need to replace Nigerian Airways has continued to remain a controversial issue most recently the NIGERIAN AIR project where the Federal Government of Nigeria, claimed it had 5% stake yet is still in controversy with court cases with parties in this issue yet to reach an amicable settlement on this matter.

2. Commercialisation and privatization of FEDERAL AIRPORT AUTHORITY OF NIGERIA(FAAN).

It is no brainer that FAAN has outlived its usefulness as a parastatal managing federal airports, ground infrastructure, or facilities that are privately owned globally even with a Nigerian who recently bought an international airport in the UK. The Federal government should privatize FAAN the same way it did with NNPC’s transition from a Public corporation to a Limited liability private company, to enable the efficiency and excellent performance to bear in the management of our airport facilities saving Nigerians and the international community the agonies of continuously lamenting the rot and decay of our facilities such decrepit conveyor, dirty toilets and leaking terminal facility for too long

REDUCTION IN MULTIPLE AND ARBITRARY CHARGES BY AGENCIES ON AIRLINES AND SERVICE PROVIDERS.

The high rates of multiple taxation and arbitrary charges on Airlines and service providers in the aviation sector are rather alarming, this has been argued by stakeholders as the reason for the failure rates of airlines in the last 30 years…Entering the airport tolls are charged on vehicles during entry, yet different agencies in the aviation industry and touts continue to subject operators to multiple charges. The need to implement the Steven Oronsaye report on the rationalization of Federal parastatals is critical in reducing or merging the number of different agencies with overlapping functions in the Aviation sector in Nigeria to save our country from these needless problems.

3. HEAVY INVESTMENTS IN INFRASTRUCTURE DEVELOPMENT IN THE AVIATION SECTOR

This has remained a notorious bottleneck in Nigeria’s Aviation sector with inadequate infrastructures such as maintenance, repair, and overhaul (M.R.O) Hangar facilities for Aircraft maintenance that would save Nigeria’s Airlines huge capital flights running into millions of dollars annually, the Government should encourage private investors to bid on either concessions or outright ownership in provision of infrastructure in our airports that can expand more job opportunities in the sector.

4. SETTING UP OF AVIATION FINANCE AND  LEASING COMPANY.

This finance vehicle called the AVIATION FINANCE AND LEASING COMPANY will no doubt enable a specialized finance window for the aviation sector thus shielding airlines and other operators from the difficulties associated with the conventional finance systems in Nigeria where high-interest rates are inimical to the growth of the sector. With a separate finance vehicle in place for the sector it will enable growth and expansion thus contributing hugely to the GDP of the Nigerian economy. This development will put an end to huge funds trapped with the Central Bank of Nigeria owned by local and international Airlines currently put at $783M.

PRIVATE SECTOR OWNERSHIP AND MANAGEMENT OF OUR AIRPORTS ARE LONG OVERDUE.

Transportation globally is a major economic artery and socio-economic enabler of any modern economy, it comes in various forms from Land, water, Air, roads, and railways… The main topic of our discussion is the enormously untapped potential our Aviation sector in Nigeria holds for the expansion growth and development of our national economy going by our population size, and our dynamic and energetic youthful populace. Personally going down memory lane as a little child in the early 90’s I used to visit a relative who lived at the Staff quarters of defunct Nigerian Airways then regarded as the pride of the African skyline before its treacherous mismanagement and subsequent liquidation in 2001 by the Federal Government of Nigeria.

Going to the airport as a little kid was an experience to savor, it was filled with lots of excitement and nostalgia hearing the sound of the airplane coupled with the visitor’s arrival from various destinations was such an experience to recount in living memory, but fast forward today the Aviation sector in our Country is nothing but national embarrassment stories from decrepit infrastructure, so much talkshow with little corresponding positive actions leading to deliverables and achieved milestones. There is no clear direction and sense of purpose from horrendous policy somersaults, to years of abandoned projects and the disappearance of our national carrier the list appears endless. Ethiopia Airlines is arguably the best Airline on the African continent with its clearcut performance in the aviation sector Africa, today Nigerian Government was reported to have sold significant stakes to Ethiopian Airlines for our national carrier which was recently floated, because Nigeria has an abundance of talents across the globe, which can serve as source of our national pride.

The Aviation industry in Nigeria has been plagued with several challenges that have hindered its growth and development over the years. One of the major issues facing the industry is the government monopoly on the management of Nigerian airports. The government through its agencies has been responsible for the construction, maintenance, and management of airports in Nigeria.

The Nigerian aviation industry is over-regulated by government agencies such as the Nigerian Civil Aviation Authority (NCAA), Nigeria Aerospace Management Agency, Nigeria Safety Investigation Bureau, and the Federal Airports Authority of Nigeria (FAAN) this alone resulted in the enormous

 

 

s suffocation costs of doing business in the Aviation industry. These agencies have been responsible for setting regulations and standards for the industry, which has led to the government's control of airport management in the country.

However, this monopoly has been criticized by many stakeholders in the aviation industry, including experts, professionals, and investors. The main argument against the government monopoly is that it has led to inefficiencies, corruption, and poor service delivery in airport management.

Privatization has been proposed as a solution to these challenges. The proponents of privatization argue that it would promote competition, efficiency, and innovation in airport management, leading to better service delivery, increased revenue, and improved safety standards.

There have been some efforts towards privatizing the Nigerian aviation industry, but progress has been slow. In 2018, the federal government announced plans to concession four major airports in the country to private investors. However, this move was met with resistance from labor unions, who argued that privatization would lead to job losses and reduced benefits for workers.

Government Monopoly: Refers to the current situation in which the Nigerian government is the sole owner and manager of the major airports in Nigeria, including the Murtala Muhammed International Airport in Lagos, the Nnamdi Azikiwe International Airport in Abuja, and the Port Harcourt International Airport in Rivers State.

1. Airport Management: Refers to the overall administration, planning, and operation of an airport, including the management of airport facilities, infrastructure, and services.

3.Privatization: Refers to the transfer of ownership and management of an airport from the government to private entities, including private companies, investors, and consortiums.

4. Efficiency: Refers to the ability of airport management to use resources effectively and minimize waste, while maintaining high levels of productivity and quality.

5. Innovation: Refers to the ability of airport management to introduce new ideas, technologies, and processes to improve operations, enhance customer experience, and increase revenue.

6. Safety and Security: Refers to the measures put in place to ensure the safety and security of passengers, employees, and aircraft, including safety regulations, security screenings, and emergency preparedness.

7.Economic Growth: Refers to the increase in the production and consumption of goods and services, leading to an increase in employment, income, and overall economic welfare.

8.Stakeholders: Refers to individuals, groups, or organizations that have an interest or are affected by the management and operations of airports, including policymakers, investors, airlines, labor unions, and passengers.

9.Feasibility: Refers to the likelihood or practicality of implementing a proposed solution, taking into consideration economic, social, and political factors.