Aero Contractors’ CEO Faults NCAA on Poor Financial Health of Nigerian Airlines
Chinedu Eze
The Managing Director and Chief Executive Officer of Aero Contractors, Captain Ado Sanusi, has faulted the claim by the Nigeria Civil Aviation Authority (NCAA) that domestic airlines were in a poor state of health.
Sanusi said that if the operations of Nigerian carriers were to be grounded due to their financial status, none would survive in view of the results of the financial audit the agency carried out on the airlines.
Reacting to the NCAA’s claim, he argued that if the NCAA had concluded that most airlines were in a poor financial state, it would be evidence of a larger, systemic problem rather than individual mismanagement.
He argued that rather than placing the entire burden on the airlines, the NCAA and the Ministry of Aviation should investigate and address the underlying causes of financial instability.
Speaking at the South-West Regional Air Transportation Summit in Lagos last Wednesday, the acting Director-General of NCAA, Captain Chris Najomo, had declared that if the agency should strictly abide by the dictates of the financial audit conducted on Nigerian carriers, all airlines in Nigeria might go under.
Najomo, who was represented by the Director of Aerodrome and Airspace Standards (DAAS), Godwin Gyang Balang, at the event, however, said while the Nigerian economy was facing significant macroeconomic and developmental challenges, these challenges were by no means insurmountable.
But in his reaction, Captain Sanusi identified factors that inhibited the growth and profitability of Nigerian carriers, which included multiple taxations.
“Excessive taxes and fees can cripple airline profitability. Airlines face operational taxes, charges for landing, airspace usage, and other regulatory fees, which increase their cost burden significantly. Reducing these would allow airlines to operate more efficiently and become more financially viable,” Sanusi said.
The Aero Contractors CEO said that airlines operated in a highly challenging environment.
“The Nigerian aviation industry operates in a difficult economic climate, with currency devaluation, high fuel costs, and infrastructural limitations contributing to the struggles of airlines.
“The NCAA and other stakeholders should collaborate to create a more favourable operating environment by improving infrastructure, reducing fuel costs, and providing incentives for growth,” Sanusi added.
He also said many Nigerian airlines operate with inadequate finance, noting that Nigerian airlines might struggle to access affordable financing to maintain or expand their fleets.
This, he noted, could limit their growth and competitiveness, leading to fewer aircraft in operation and a higher likelihood of flight delays and cancellations, adding that policymakers could work on providing better financial structures or easing access to credit to help airlines strengthen their fleets.
“There are also macroeconomic factors. The broader economic challenges Nigeria faces, including inflation and foreign exchange volatility, directly impact airline costs, especially for fuel and aircraft maintenance (often paid for in foreign currency). The government and regulators should focus on macroeconomic reforms that stabilise these critical costs.
“The NCAA should be more proactive in offering solutions and supporting the airlines, such as engaging in regulatory reforms that help airlines operate more sustainably rather than simply threatening to shut them down based on financial audits. The focus should be on creating a regulatory framework that fosters growth, competitiveness, and safety while allowing airlines to survive and thrive in a tough economic environment,” Sanusi added.
