August 01, (THEWILL) – For many years, Nigeria’s Aviation industry has witnessed a lot of changes, in terms of management, policy and regulation. The industry has also faced several challenges, just as experienced in other countries of the world, the sector being a global business.
The challenges, which have to do with funding, climate change, technological innovations, fueling, insecurity, taxation, etc, were further exacerbated in 2019 due to the outbreak of the COVID-19 pandemic. The advent of COVID-19 has apparently put the global economy to the test, with air transport being undoubtedly the hardest hit by the pandemic.
Statistics released by the International Airline Transport Association (IATA) on COVID-19’s economic impact on Nigeria has revealed a revenue loss of $994 million in 2020. In terms of employment risk in Nigeria, it has been estimated to have cost 125,370 job cuts and loss of contribution to the Gross Domestic Product put at $885 million.
Fortunately the Federal Government was able to cushion the effect of the pandemic by providing intervention funds to the tune of N5 billion to domestic airlines in the country, although it was adjudged to be insufficient.
According to the Minister for Aviation, Senator Hadi Sirika, the Federal Government could not have achieved this without the cooperation, constructive criticism and great understanding of everybody in the industry.
Speaking during a recent conference organised by the League of Airport and Aviation Correspondents (LAAC) in Lagos with the theme: ‘Nigeria’s Aviation Industry: Management, Policy and Regulation,’ as keynote speaker, Senator Sirika said his ministry is committed to completing outstanding projects they had set out for themselves before their term runs out, assuring that the ministry’s vision is that of a sector that will provide utmost comfort, safety and security for majority of passengers.
In terms of management of the sector, Sirika, who was represented by the Commissioner/CEO of Accident Investigation Bureau (AIB), Engr Akin Olateru, re-echoed the fact that the ministry is being assisted by the six aviation agencies in the management of the aviation sector to ensure effective and efficient service delivery in compliance with International Civil Aviation Organisation (ICAO) standard.
The agencies include the Federal Airports Authority of Nigeria (FAAN); Nigerian Civil Aviation Authority (NCAA); Nigerian Airspace Management Agency (NAMA); Accident Investigation Bureau (AIB); Nigerian College of Aviation Technology (NCAT) and Nigerian Meteorological Agency (NiMet).
On policy and regulation, Sirika informed that the ministry, in conjunction with the aviation agencies, is working with the National Assembly to review/amend all the Aviation Agencies’ Acts in order to provide effective management of services and align with modern technological development in line with international best practices and development in international civil aviation.
According to him, the two legislative houses have held public hearings on the matter and at the final stage of their report.
In his keynote address, Director-General of the Nigerian Civil Aviation Authority (NCAA), Capt Musa Nuhu, stated that the 2006 Civil Aviation ACT is currently undergoing review at the National Assembly to reflect changes that have taken place, especially new ICAO SARPS in various areas, such as environment, RPAS, cyber security, etc.
Capt Nuhu pointed out that the operating environment has undergone significant changes such as advancement in technology and growth in new sectors of the industry, assuring that the ACT is expected to be ready in the new future for signing into law by President Muhammadu Buhari.
According to the DG, since the establishment of the NCAA over 20 years ago, there have been many significant milestones in the growth of the industry, these have not been without challenges, difficulties and unfortunate occurrences of air crashes within a short period.
“However, these bad days have been put behind us and I am glad to confirm that over the last 8 years there has been no commercial air transport category accident in Nigeria,” he added.
In his remark, the Chairman, Senate Committee on Aviation, Smart Adeyemi, assured the players in the industry that the NCAR bill, which is presently before the assembly would be passed very soon.
He explained that the passage of the executive bill would further accelerate growth in the Nigerian aviation industry, maintaining that the National Assembly would do all within its capacity to move the sector forward.
Similarly, the Chairman, House Committee on Aviation, Hon. Nnolim Nnaji, said that the aviation industry required good policy governance and the right framework to move it forward.
Nnaji said, “The success of any industry is management. If you have the right people in management, it is going to go a long way in achieving good results. Also, once you have committed people, especially like we who are in the legislative arm, we are committed to what is happening in the executive. It’s not that we are trying to police the executive; we are not the type that wants to toss the agencies around because we feel that we have the power to do so. It’s just that we are committed to the safety of the industry.”
Speaking on the COVID-19 bailout funds, Nnaji said,”The government didn’t do much in terms of bailout for the airlines. The cost of the engine of a Boeing is close to $10 million and what the government provided for all the airlines is about N4 billion, so, when you compare what our airlines got to other countries, you will find out that they didn’t do much for the industry. The aviation industry is a very expensive business and most people do not break even. What they just succeed in doing is to just keep the business going because everything about the industry is offshore and that is a challenge.
“We have succeeded in getting zero duties for the airlines for the purchase of spare parts. Another issue that they are battling with is the issue of forex. Since they buy most of their stuff abroad, it is important that they have access to forex. The planes need to be in the sky all the time because the more you move, the more money you make so that you can pay your bills. We would want the Central Bank of Nigeria to create a window for Forex because it will help reduce the airfare.”
Also, Capt. Rabiu Yadudu, the Managing Director of the Federal Airports Authority of Nigeria (FAAN), declared that the industry was still experiencing financial distress, saying it would take the next two years for the industry to recover from the effect of the COVID-19 pandemic.
Yadudu reiterated that without ample financial resources, it would be difficult for the industry to recover. He called for the aggressive implementation of policies, adding that while the industry was performing well, in terms of regulation, implementation remained a major challenge.
In his remark, Chairman, Mish Aviation Limited, Capt Ibrahim Mshelia, said Nigeria’s aviation industry is battling too many oppressive forces, which come in the form of manmade and natural factors.
Mshelia also noted that with the lopsidedness in the procurement procedures and the operational limits of Air Operator’s Certificate (AOC) holders in Nigeria, there is an urgent need to amend acts and policies in this area to empower civil aviation and to break down the certification process of commercial operations.
“Today, we have an unhealthy situation where there is a blanket issuance procedure of AOC for big, small, or large operations. Under this system, the roles of other segments of operators that are also entitled, by law, to operate commercial operations, unfettered as guaranteed by ICAO, are not spelt out. By ICAO standard, small, large and medium operations, including; Air Taxi, Air Charter, Cargo Only, nonscheduled and Scheduled operations etc, are recognised,” he said.
In his reaction, Adeyemi, lauded the Federal Government for putting in place policies that would create an enabling environment for airlines to survive.
About the Author
Anthony Awunor, is a business correspondent who holds a Bachelor of Arts Degree in Linguistics (UNILAG). He is also an alumnus of the Nigerian College of Aviation Technology (NCAT), Zaria Kaduna State. He lives in Lagos.
