Key players across the country’s aviation sector, led by the minister of aviation and aerospace development, Festus Keyamo have agreed that the sustainability of the country’s aviation sector, requires innovation funding models, including concession, joint ventures and the setting of a development fund.
The key players arrived at the conclusion at the South West Regional Air Transport Summit (SWRATS), organised by the Nigeria Civil Aviation Authority (NCAA) in Lagos on Wednesday.
Participants at the summit who agreed that the reliance on internally generated revenues is not sufficient to address the myraid of challenges confronting the sector, however identified factors ranging from attraction of private sector funds and adoption of public private partnership models as necessary tools required to tackle aging airport and air navigation facilities.
The minister who was represented by the Managing Director of the Federal Airports Authority of Nigeria (FAAN), Mrs Olubunmi Kuku acknowledged that for the sector to improve that there is an urgent need to enhance capacity through strategic partnership of private sector players.
According to Kuku, there is the need to review the funding models to pave the way for concession, joint ventures and other interventions that will boost private sector investment.
She called for the review of strategies to birth the implementation of a roadmap to drive growth for the industry.
Speaking at the event, the Acting Director General of NCAA, Captain Chris Najomo attributed the theme of the summit:” Repositioning the Nigerian Aviation Industry for Financial Capacity and Economic Viability : An Inclusive Regulatory Dialogue”, to the resolve to address service deficiencies and poor passenger experiences stemming from inadequate funding.
The present efforts by the Minister to engage aircraft manufacturers and aircraft leasing companies according to Najomo has engendered more confidence for Nigerian operators.
The DG who was represented by the Director, Airspace and Aerodrome standards, Mr Godwin Balang, acknowledged that the “Nigerian economy is facing significant macroeconomic and developmental challenges, but they are surmountable through implementing innovative approaches.
“No doubt, a sustainable regulatory framework built on collective engagement and strategic collaboration is critical to achieving operational excellence, enhanced productivity, and sector growth without compromising safety standards.
“With the support of this minister, we at NCAA are committed to rebranding, reinventing, and rejuvenating the Nigerian aviation sector for international competitiveness, sustainable growth and development.”
Also speaking, Chairman , Senate Committee on Aviation, Abdulfatai Buhari said the upper legislative chambers is working on a bill that will mandate Nigerian airlines to have between four to five aircraft before they can start operations.
Buhari said the proposed bill is one way to address capacity issues leading to incessant delays and perennial flight cancellations.
Although, the regulatory authority had in July 2023, unveiled its policy stating that from January 2025, the minimum aircraft fleet of any airline providing scheduled service in Nigeria would be six aircraft, as against the minimum of three aircraft, which has been the policy over the years, Buhari said despite stakeholders’ opposition, such bill is the way to go.
The NCAA policy also insisted that the maximum aircraft that must be airworthy out of that six aircraft should be four. This means that an airline is expected to ground its operations if it has less than four aircraft that is airworthy.
According to the lawmaker: “Nigerian airlines should be professional, Nigerians want to see confidence, they want comfort and want to be assured of safety, if an airline has just two aircraft, it should operate within the confines of its capacity and not overburden itself with multiple routes than can’t be served.
“It is sad to experience delayed flights , we need to do the right thing for the sector to excell and compete favourably with our counterpart. We are working on a bill that will make it mandatory for prospective and existing airlines have minimum of four or five aircraft to start operations.”
On his part, Dr. Jekwu Ozoemene , of the Alternative Bank canvassed the establishment of an Aviation Development Fund to cater to the huge funding gaps in the sector covering airport infrastructure and airport navigation facilities.
He canvassed the liberalization of air transport policies , relaxed regulatory restrictions to attract private sector investment into the sector.
In his remarks, former DG NCAA, Dr. Harold Demuren said the summit could not have come at a better time than now that the sector needs to grow.
