January 09, (THEWILL) – 2021 was an eventful year in the aviation sector. In this report, ANTHONY AWUNOR previews industry activities that will shape 2022
From all indications, 2022 will be quite exciting for aviation in Nigeria, with expected new entrants in the airline business, massive investments in aircraft purchase, aerodromes and other critical areas of the industry.
Stakeholders in the aviation industry have already projected 2022 to be a good year in the industry because of the policies and projects to be executed by the Federal Government. According to them, such government policies, if implemented, will no doubt stimulate growth, development and competition among operators.
New Airlines
To stimulate more activities in the industry, the Federal Government through the minister of aviation, Senator Hadi Sirika, announced February and April 2022 as take-off dates of the national carrier christened Nigeria Air and the concession of four major airports, respectively.
Sirika had in November 2021, while announcing that the airline would come to life in April 2022, disclosed that the government would hold a five per cent stake, Nigerian entrepreneurs will holding 46 per cent, while the remaining 49 per cent will be reserved for yet-to-be assigned strategic equity partners, including foreign investors.
In addition, the Assets Management Corporation of Nigeria (AMCON) has concluded plans to set up Nigerian Eagle Airline to replace Arik Air, which has been under its receivership since 2018. Aside the AMCON-backed Nigeria Eagle, the year will see other airlines, such as Green Africa, Cally Air and others, flourish. Another three airlines are already on the verge of being awarded the all-important Air Operators Certificates (AOC) as early as January to commence services.
Aircraft Investments
This year looks like one that aircraft deals will take shape and mature. It is a period whereby carriers could begin to see their multi-billion naira aircraft acquisition projects begin to take shape in terms of delivery and new leases that would help them enhance their operations.
For instance, Ibom Air had in November 2021 sealed a deal with European aircraft manufacturer, Airbus, to buy 10 A220 jets. Similarly, at the same Dubai Airshow, Overland Airways placed orders for three new E175 E-Jets, plus three purchase- right aircraft worth $299.4 million at list price, with all options exercised.
On the other hand, Nigerian start-up carrier, Green Africa Airways, is aiming to increase its fleet of ATR turboprops to as many as 15 aircraft in 2022. Air Peace took delivery of its fifth Embraer 196-E2 aircraft. The fifth Embraer 196-E2 aircraft is among the 13 ordered from the Brazilian aerospace conglomerate, Embraer, in 2019. Eight planes remain to be delivered by 2022.
Airport Concession
For many years, the Federal Government proposed the concession of the Murtala Muhammed Airport, Lagos; Nnamdi Azikiwe International Airport, Abuja; Port-Harcourt International Airport, Port-Harcourt and the Mallam Aminu Kano International Airport, Kano.
Although little progress has been made in the process, 2022 seems to be the defining year as it is already at the critical stage. Already, there are great expectations as many would-be investors are already jostling to win as preferred bidders for the four most viable airports.
Advising on the airport concession plan, the Acting Director of the Infrastructure Concession Regulatory Commission (ICRC), Mr. Michael Ohiani, says private sector investment in airport concession is the way to go in infrastructure development in the industry.
“We don’t want portfolio investors. We want those who will bring value to the concession processes, let the private sector bring in their experts, their own money and enhance it and at the end of the day take back our assets”.
Stakeholders’ Views
Speaking on Aviation in 2022, President of Aviation Round Table (ART), Dr Gabriel Olowo, urged Nigerians to positively look forward to 2022 with hope that the Omicron variant of the Coronavirus will not metamorphose into another variant or another plague that will impact life as negatively as COVID-19.
Advising the Federal Government on how to attract investment in the aviation industry, he said it should continue to address insecurity and its adverse effect on the country’s risk assessment. According to him, the country’s risk assessment speaks volume on the economic index measurement, such as in exchange rates, insurance premiums, pricing, inflation and others.
On whether the government can achieve national carrier status by April 2022 as claimed, Olowo added, “I am not worried about time of entry or exit of any carrier, my earnest desire is to see the emergence of a strong, efficient and globally competitive Nigerian flag carriers. The weight thrown by the government on Air Peace/ Emirate commercial negotiations in UAE disagreement is a confirmation that Nigeria has already endorsed that flag Carrier. A commendable aero politics indeed.”
Also speaking on Aviation in 2022, the Secretary-General of Association of Nigeria Aviation Professionals (ANAP), Comrade Abdulrasaq Saidu, advised the government to bridge the gap being created by the dwindling workforce in aviation.
Comrade Saidu warned that if urgent steps are not taken, the aviation industry in Nigeria will be left with a dangerous vacuum in the workforce, which may adversely affect the system. He stated that the union is disturbed about the vacuum that will be created by the mass retirement of workers in the aviation industry.
Saidu, who described the vacuum as a man-made problem, pointed out that those in the system have failed to promote workers that are due to be promoted while in office.
This anomaly, he noted, was perpetrated either by transferring these sets of workers out or deliberately hiding their files.
Lamenting the situation, the labour leader said, “What we want to see is the employment of 500,000 workers in different parastatals, thereby increasing their numerical strength in the name of empowerment. We can’t fold our arms and allow these things to continue.”
Saidu also said that ANAP had vowed to pursue vigorously the issue of workers Condition of Service (CoS) in 2022 to a conclusive end. On workers’ expectation in 2022, he said the CoS had caused embarrassment to the unions and must be achieved in all the agencies in the sector in 2022.
He expressed the opinion that all the unions in the industry will speak with one voice to actualise this goal this year, adding that it had lingered for too long.
He noted that the main duty of the unions was to protect the working conditions of their members.
“Conditions of Service is very important. When you get approval, there must be a letter and by the act, it is the governing board of directors that is charged on day to day to approve the workers condition and promotion. It is not vested in the ministry and the minister.
“He said that in the absence of a board there will be an interim board. Where is the interim board? So what is delaying them from writing letters and informing the chief executives of the state of the CoS?” Saidu asked.
He urged the management of parastatals to appoint those that merit the appointment on the order of seniority and not to allow any vacuum. He advised the chief executives officers of aviation agencies not to encourage contract staff and also not to allow the retirees to come back as consultants.
He urged workers to be ready to fight for their right this year as the unions were ready to protect them.
On airport concession, the ANAP scribe said it was a failed project as there was nothing to be concessioned at the airports. He wondered if the minister would concession the Chinese terminals.
He said the concession arrangement will never work until labour issues are resolved by setting up the necessary committee to discuss the issues.
Warning that the proposed concession should not carried out like that of the moribund Nigeria Airways, he said, “To me, I don’t believe there will be a concession because I only saw that the minister wanted to be in the news so that people will think he is working. How do you concession when you take out a loan from China. We have presented our papers and met with the NASS. We have also met with him and we spoke with him, but he is not listening and it is not feasible. But we have told him that if he wants to concession, he can go ahead, but the people working there must be paid their entitlements.”
He said they had met more than three times to set up a committee on labour matters, insisting that those workers who have served for certain periods must be paid accordingly, while the cut-off years of the pensioners must be taken care of.
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.
