No Idling for Aviation Minister

For the incoming minister that will be in charge of Nigeria's aviation sector, there can't be any idle moment. Over the years, the sector has so underperformed that it pales below even some of its competitors in Africa when it has all the potentials to match the fast pace of aviation business in other continents.

For the new minister, the task of repositioning the sector has, therefore, become huge and daunting. Though some industry analysts argue relative progress has been made in the sector in the last few years, they have never doubted there is still much left undone. That's why the new minister must get busy at once.

Of course, there are many critical areas of focus. This article may not exhaust all of them; the minister will be exposed to others as he navigates the industry. The industry has, indeed, lost growth and development pace and won't give the minister a long learning rope. He must learn quickly!

Attracting private sector investments in Nigeria's aviation

investors must be attracted to invest in Nigeria's aviation sector. Here is why: Relative to Nigeria's gross domestic product (GDP) of N80.3 trillion ($509.9 billion), the country's aviation contributes a meagre $0.7bn or 0.4 per cent to the GDP, though it has potentials to contribute in excess of 5 per cent to the GDP and support in excess of one million jobs. Aviation experts posit that for Nigeria to really tap significantly into its potentials in the aviation business, it must attain the position of a regional hub, connecting more destinations across Africa and other continents.

Experts agree Nigeria has the capacity of being a regional hub because of its strategic location, population and resources. To fast-track developments in the sector, the immediate past Minister of Aviation, Chief Osita Chidoka said the private sector must invest, at least, $5bn (N990bn) in the industry between now and 2018, when traffic in Nigeria is projected to hit 12 million annually, in a short-term financing arrangement. The mid-term financing projection indicates that by 2018, about $7bn investment would be needed as about 25m passengers would be processed at the time. Thus, the new aviation minister must devise ingenious ways to attract private sector investments into the aviation sector. This could occur through concessions, PPP projects and outsourcing, among others.

Making Aviation a Tool for Nigeria's Economic Development

This suggests that the Aviation minister must pay more than a passing interest in the industry. Governments of countries that have succeeded in making aviation viable and contributing significantly to their GDP made it a priority sector, thus attracting substantial investments to it. Thus, the Nigerian government must redefine what aviation is to its economic growth prospects.

The Rector of the Nigerian College of Aviation Technology (NCAT), Zaria, Captain Samuel Akinyele Caulcrick, agreed with the above position. Caulcrick had told our reporter recently that, "If the government sees aviation as a tool to grow the economy like Dubai did, the industry will grow in no time. If government sees aviation as a tool for economic growth, it will allocate more resources to fund it. If government sees it as a luxury, then it won't invest in it."

He also noted that out of about 180m Nigerians, only about 2m travel by air annually. "The traffic for last year was 15m-10m for local and 5m for international flights. And most of those who travel by air in Nigeria are the same set of people travelling multiple times, so we can't have more than 2m people flying in Nigeria and this is embarrassing. That's the worst ratio in the world, given our population. It is even worse than what it is in Afghanistan. But the industry will grow if we redefine our aviation sector," he explained. Investing in aviation will engender low-cost carriers and help more Nigerians to travel and do business.

BASA

Nigeria is not really benefiting from the Bilateral Air Services Agreements it has entered into, compared to what foreign airlines are benefiting from the same agreements. Statistics show that foreign airlines make in excess of N800bn annually from Nigeria, whereas Nigerian airlines operating international flights don't make a fraction of that. Industry stakeholders have consistently called on the federal government to step in with a view to addressing the gap and helping Nigerian airlines benefit from the BASA deals. This is one area performance of the new minister will be assessed on.

National Carrier

Closely linked to the BASA concern is the call for a national carrier. A ministerial committee has already submitted its findings, which agree that Nigeria needs a national carrier urgently to correct some of the BASA anomalies and deepen the aviation business in Nigeria. Thus, the minister must nurse the national carrier to maturity.

Abuja Second Runway Project

Delivering a second runway for the Nnamdi Azikiwe International Airport Abuja is not negotiable. The increasing traffic at the airport and increasing economic activities around Abuja have made the current runway inadequate. Several times, the runway had been shut to traffic for repairs or accidents, which paralyzed activities around the airport. Though the contract process for the Abuja second runway has commenced, the minister must ensure it is delivered in record time.

Airfield Lighting

Besides Abuja, Lagos, Kano, Port Harcourt, Kaduna and Enugu airports, all the others in Nigeria are without airfield lighting. This makes it impossible for aircraft to land at those airports after 6pm. This isn't healthy for the economy of the states and the aviation sector. Projections suggest that the installation of airfield lighting in all the nation's 22 airports will boost the revenue of domestic airlines to the tune of about N40bn annually because the airports will operate more flights for, at least, four more hours, thus yielding more revenue. The Five New International Terminals and Others

There are high expectations that the five brand new international airport terminals being built in Abuja, Enugu, Kano, Lagos and Port Harcourt will soon be delivered by the Chinese contractors. Also, additional 11 airport and cargo terminals under construction across the states should be commissioned. The minister is expected to complete this task.

Capacity Building

There are also concerns about shortage of technical staff in the Nigerian Civil Aviation Authority (NCAA), Nigerian Airspace Management Agency (NAMA) and the Accident Investigation Bureau (AIB). The minister will be expected to strengthen these agencies to enable them deliver on their mandates.

Safety

Safety is the most critical concern in the aviation industry. Thus, the minister would be expected to support the NCAA to carry out critical oversight on the airlines and other agencies to deliver on safety concerns. Nigeria can't afford another air mishap.

While this list isn't exhaustive, we shall be here long enough to draw the minister's attention to more critical concerns in the concerted effort to move the sector forward.

About the Author

By 9jatravel / Administrator, bbp_keymaster

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on Nov 13, 2015

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