Transformation in Aviation Sector Amid Challenges
Nigeria’s aviation industry is burdened by low capacity, high airfares and limited operational facilities, but the Minister of Aviation is charting a new course to transform the sector, writes Chinedu Eze
There is inexplicable feeling of tightness and precariousness in the aviation industry currently because of the depleting number of operational aircraft and the high airfares, which has significantly reduced passenger traffic.
The depreciating value of the naira and the paucity of foreign exchange have constricted the business of air travel in Nigeria. But beyond this gloom, there is hope. The hope lies in the fact that airlines may soon rejuvenate dry leasing of aircraft, major airports may finally be concessioned and the long-promised establishment of Maintenance, Repair and Overhaul (MRO) facility will eventually be realized. All these are likely to come through soon, going by the current transformation agenda of the Minister of Aviation and Aeronautical Development, Mr. Festus Keyamo.
Different Approches
Beyond his assurances, one can perceive the determination of the minister to make these become reality. Last week Keyamo clocked one year in office and his activities within one year have been transformative.
In comparison with his predecessors, Keyamo has done creditably well in transforming the aviation industry.
The former Minister of State, Aviation, Hadi Sirika took combatant approach against Nigerian airlines, when he took charge of the Ministry of Aviation.
In one of his outings, he accused them of being impoverished and swimming in debts with low capacity. That deflated the enthusiasm of Nigerian carriers. Some stakeholders told THISDAY that from the onset they knew that “the aviation industry was in trouble.”
In a report published on February 9, 2018 in several newspapers, Sirika, as Minister of State, Aviation then, said that the airlines owed aviation agencies N513 billion.
“There is an airline that owes one of the agencies N13 billion. One airline owes several agencies and companies up to N500 billion; just one airline. That airline has been taken over. Is that how they will compete? I think it is getting their priorities right and by doing the business model that will get money for them that they will operate well. There is a lot they can do in aviation than just passenger scheduled services when they don’thave the capacity, experience and the business model,” Sirika said at that time.
But when Keyamo became minister a year ago, he said: “FG will reciprocate obstacles to frustrate Nigerian carriers on international operation.” According to reports, “The Minister of Aviation and Aerospace Development, Festus Keyamo, has stressed that the federal government would do everything possible to help Nigerian carriers lease aircraft on long-term agreement at competitive rates like most other airlines in the world. The Minister also said the government was committed to supporting domestic carriers succeed on international service and would retaliate any obstacles meant to frustrate them on any route they operate.”
Working with Airlines
This sanguine disposition has made a lot of difference in the pursuit of the goals to positively change the trajectory of development in the aviation industry. It has put airlines and the government in the same pedestal, working together to solve problems in the industry. The airlines know that the Minister is behind them, as remarked recently by the Chairman and CEO of Air Peace, Dr. Allen Onyema, who said that the commitment shown by the Minister to ensure that airlines are revitalised has remained unprecedented and it is a tonic to egg airlines on to do everything possible to boost their operations, acquire more aircraft and bring down airfares.
Onyema particularly thanked the minister for the role he is playing to ensure that domestic carriers have more aircraft and the concerted effort to have major maintenance facility in Nigeria.
Last year during the Aviation Africa Summit in Abuja, the minister mandated airlines acquiring aircraft to also work with the Original Equipment Manufacturer to set up a maintenance facility locally to service the aircraft.
Onyema, while commending him, said: “The Honourable Minister has just scored a first in just a month of being appointed. He called me in two weeks ago and said, going forward, any Nigerian airline that wants to bring in brand new planes must also think of maintenance responsibility for those planes in-house and within Nigeria.
“He made it compulsory that if you are going into the acquisition of more than 20 aircraft, you must show evidence that the OEM is also going to support the setting up of a maintenance centre in Nigeria for the local maintenance of such planes and for third parties too because you know the amount of billions we export outside the country for doing maintenance.”
The Minister is working assiduously to establish strong relationship with lessors and aircraft manufacturers to enhance long-term aircraft leasing by Nigerian carriers; to finally put to an end to the unsaid blacklist of domestic airlines from engaging in dry lease arrangement.
Transparency and Safety
In the last one year, Keyamo has recorded discernible achievements. He stopped the establishment of Nigeria Air because of its lack of transparency and his action was strengthened by the decision of the Federal High Court. He ensured the strict adherence of Bilateral Air Service Agreement (BASA) between Nigeria and the UK and gave Nigerian biggest carrier, Air Peace, full support in its operation to London. Currently the Minister is pushing for the airline to move from Gatwick to busier and more popular Heathrow Airport for easy connectivity and access to the city of London.
Prompted by incidents involving privately owned aircraft, the Minister launched investigation into the activities of aircraft and airlines involved in charter service, guided by the Nigeria Civil Aviation Authority (NCAA), he put to an end the activities of the cabals involved in illegal charter operators to ensure transparency in the aviation industry.
In many deft moves and working with the Ministry of Foreign Affairs and the Central Bank of Nigeria (CBN), Keyamo facilitated the restoration of diplomatic relations between Nigeria and the United Arab Emirates (UAE); the payment of the backlog of foreign airlines trapped fund of over $800 million. The Minister also moved the Abuja airport second runway project from the doldrums to action. The project kicked off last year and recently the Minister with top aviation agency officials travelled to Europe to evaluate the landing aids and other equipment that would be procured and installed in the runway when completed.
Improved Airport Infrastructure
The Minister of Aviation and Aeronautical Development was appointed at the time fire ravaged the baggage area of the international terminal of the Murtala Muhammed International Airport, Lagos. He ordered for the use of the newly completed international terminal and when rehabilitation work was completed at the E-wing of the old terminal, he directed it should be put into use.
Few months ago, Keyamo received the approval of the Federal Government for the procurement of modern scanners for use in the five international airports across Nigeria.
The airports are the Nnamdi Azikiwe International Airport (NAIA), Abuja, Murtala Muhammed International Airport (MMIA), Lagos, Mallam Aminu Kano International Airport (MAKIA), Kano, Port Harcourt International Airport (PHIA) and Enugu International Airport, Enugu.
The intent of the airport scanners is to put an end to airport officials having to physically search the bags of passengers going through airports and the new equipment has the capability to detect explosive devices, contraband drugs and others.
When installed they would reduce passenger processing time, promote efficiency and also eliminate the illicit activities of security operatives who use the physical search of passenger luggage to extort travelers, using all kinds of subtle threats. It will also improve the image of the international airports and the Federal Airports Authority of Nigeria (FAAN), which has been slammed variously of its inability to stamp out the obnoxious activities of these security officials whose unchecked avarice has damaged the reputation of Nigeria in the international circles.
Also, the Minister ensured that work was sped up on the rehabilitation of the international runway of the Lagos airport, known as Runway 18R, which closure made take-off and landing of international airlines a gruesome experience, causing delays and inconvenience, as the alternative facility, Runway 18L, the domestic runway encumbered their on-time performance, especially at peak periods.
Another action taken by the Minister which was commended by industry stakeholders was the relocation of FAAN administrative headquarters from Abuja, which has no offices to Lagos, where offices of the agency was almost abandoned.
In February 2024, the Minister disclosed that in 2023 alone, FAAN spent about N1 billion as Duty Tour Allowances (DTAs) and shuttling between Lagos and Abuja alone; an outrageous expenses, one must say.
Achieving Results
The Managing Director, Flight and Logistics Solutions Limited, Amos Akpan, said the minister has shown enthusiasm to achieve results, remarking that the minister picked some problems, tackled them head-on and achieved results.
“He wanted to conclude on Air Peace flying the London route, he pursued it to conclusion. Now he is pursuing Air Peace getting slots on the London Heathrow airport, we pray he succeeds. He is pursuing recommencement of operations on Nigeria – Dubai route. He has obtained announcement of date of resumption from Emirates, let’s hope Air Peace resumption date follows in the interest of Nigeria.
“The Minister is currently going to aircraft manufacturers to press the case for them to lease aircraft to Nigerian airline operators. The Minister clearly took bold decisions in the interest of the industry in spite of the resistance from political gladiators like the relocation of FAAN headquarters to Lagos, and the support for NCAA to clamp down on illegal private charter operators. Going forward, I recommend he patiently nudge agencies like NCAA on technical matters he wants done rather than make pronouncements ahead of the technical agency saddled with such roles. There is the impression by observers and commentaries that the Minister seems to take decisions and make announcements on matters that are technically within the purview of the aviation agencies.
“The construction of the second runway in Abuja has begun in his one year tenure.
Having had a year’s feel of the industry, the Minister will now press to inculcate his agenda in the industry programs and activities. The agencies, the operators, and the providers of ancillary services should have knowledge of the Minister’s agenda for the industry so they can fit them into their programmes. I recommend MRO, hub station with world-class transit facilities, should top his second year agenda,” Akpan said.
Reviewing the one year performance of Keyamo, the Secretary General of Aviation Round Table (ART), Olumide Ohunayo, said the minister has shown commitment in the pursuit of policies that would promote investment in the sector and also enhance Nigerian carriers to play major role in international flight service.
“Like the Americans would say ‘America first,’ Keyamo has been able to push Nigeria first in all he does; his push for the Nigerian airlines to be major players in the market. He has exhibited more of that movement of having Nigerian airlines participate and that is a positive energy for the airlines to begin to see that they are not alone and that for the first time, we are having a Minister who when he designates a carrier on any route outside Nigeria, it becomes his responsibility to protect such a carrier. I give him kudos for that.
“Now, we need to get investors to partner with these airlines and that has to do not only with the Minister now but with corporate governance, the economic interest rates and all other indices that would attract the investors to come into the sector. I think that is an area that the government would need to look at in building a relationship with them,” Ohunayo said.
The minister in the last one year has given industry stakeholders hope and optimism; expectedly he will do more as he steps into his second year in office.
