Keyamo: Maintenance Facility Will Generate over $2bn, Reduce Capital Flight in Aviation Sector

Chinedu Eze

The Minister of Aviation and Aerospace Development, Festus Keyamo has projected that Nigeria will generate over $2 billion annually if it is able to establish major Maintenance, Repair and Overhaul (MRO) facility.

Doing so, he stated, will also save Nigerian airlines about the same amount of money that are repatriated annually to pay for aircraft checks overseas.

Keyamo who disclosed this at the League of Airport and Aviation Correspondents (LAAC) conference in Lagos said it became critical for Nigeria to build such facility as quickly as practically possible.

Keyamo also disclosed that he had started speaking to investors who may become interested in partnering with the federal government to realise the project, “as government has concluded that such project could only be realised through Public, Private Partnership (PPP) because of the financial outlay and technical depth needed in the project.”

Keyamo had disclosed recently that he has made firm push to establish the maintenance facility, “and some investors from overseas are showing interest.” Some have spoken about the MROs. I think it is at the heart of the improvement of our local aviation industry. We need to bring in the MROs.People are already talking with us. I don’t want to let the cat out of the bag. Very soon, we are going to advertise and call for partnership. That is the only way to go. And I think we need to call in people with money. So, for our local businessmen, our banks, financial institutions, financiers, don’t say that foreigners are coming to take your business away.”

Keyamo reiterated the importance of having major MRO, saying that it would save Nigeria a lot of money because Nigerian airlines would no more ferry their aircraft overseas for maintenance, an action that will reduce forex demand of Nigerian carriers, which require dollars to pay for aircraft maintenance overseas.

“It is big business. Anybody that establishes a world-class MRO now will make money.Such MRO facility that can attend to large-body aircraft like Boeing 777 will really attract a lot of customers from the whole of West Africa, Central Africa and even Southern Africa. There is none so far in the whole of West Africa and Central Africa for the real big body aircraft, which are the wide bodies.

“The Arabs are talking to us. The Chinese are talking to us. The Europeans are talking to us.The Americans are talking to us because they want to invest. And you know why it has to be PPPs. It is difficult to establish an MRO at an independent venue, different from an existing airport.You can’t build it, because you need a runway to get to an MRO. So, it is pretty difficult.So, you have to talk with us for us to give you one within one of our international airports. We are in the process of doing a master plan. We are going to mark out clear areas for MROs within the international airports. So, we are calling. I won’t say we are begging.We are telling you to come and make money. So, we are not begging for investment. Come and make money,” Keyamo said.

He reiterated that an MRO would generate a lot of money for the aviation sector and for the Nigerian government.

“There is money to be made here. If you bring an MRO, and of course somebody just made the point that it is going to save us a lot of foreign exchange, sourcing for foreign exchange. Like somebody said, everything is dollar within the aviation industry. It is only perhaps catering and salaries, local salaries that is in naira. So, please, we are going to watch the world to come and invest in Nigeria in our MROs. We are pushing for it. It is going to be one of our major objectives to bring in the MROs into Nigeria. In so doing, the capacities of our local operators will be enhanced. They can do their A, B, C checks, their D checks here without going out,” the Minister said.

THISDAY also spoke to the Head of Aero Contractors’ MRO, James Ominyi, who said the promise of establishing MRO by the federal government has become a sing-song that has been repeated by many past ministers, but expressed the hope that it would come to fruition this time.

“The story of establishing an MRO has been there in every regime (administration), but we have not seen anything. The fact is that if it will be established, then let it be located in Lagos. This is because Lagos has Cargo terminal, it services international operations; although the airport is chocked but government can provide land for it. Why it is important the MRO is located in Lagos is because if you want to change engine or landing gear you will import it to an airport that operates cargo services; so, that you will not deliver it in Lagos and then use vehicle to convey it to another place where the MRO is. It will not be good for the engine,” Ominyi said.

He said that by adopting PPP model, the federal government took a good decision, but wondered why government would not partner Aero Contractors, which already has MRO.

Aero MRO, he added, is the biggest in West and Central Africa, where airlines from Democratic Republic of Congo, Congo Brazzaville and airlines in Ghana bring their aircraft for checks.

“Why can’t government partner with Aero MRO. Currently we are the biggest MRO in Central and West Africa. We receive aircraft from Congo DRC, Brazzaville and Ghana and even Dakar, Senegal is auditing us. Aero is receiving patronage from these countries because it is not easy to fly six, seven hours to take your aircraft to those MRO facilities in faraway places for maintenance, “he said.

He said that in order to meet the demand of airlines bringing in their aircraft for maintenance, Aero is expanding its hangar so that it could accommodate two aircraft at the same time.

Ominyi said that work goes on steady; but there could be no slot, which means that at that point in time, the facility cannot take more aircraft.