New funding models needed for aviation sector growth, experts
Minister of Aviation and Aerospace Development, Mr Festus Keyamo alongside industry experts on Wednesday affirmed that the country’s aviation sector needs a paradigm shift in its funding models that will turn aide it turn around and ensure it growth.
According to them, the leap the industry urgently needs must be centered around the concessioning of the infrastructure, adopting joint ventures and the setting up of funds to drive the development and sustainability of the sector.
Speaking at a day stakeholders South West Regional Air Transport Summit (SWRATS) put together by the Nigeria Civil Aviation Authority (NCAA), speakers canvassed for a shift from reliance on internally generated revenues and the injection of private equity, public private partnership and similar models to revamp the sector.
Mr. Keyamo explained the need to review the funding models to pave the way for concession, joint ventures and other interventions that will boost private sector investment.
The Minister, who was represented by the Managing Director of the Federal Airports Authority of Nigeria (FAAN), Mrs Oluwaseun Olubunmi Kuku, said the industry’ growth would be enhance with strategic partnership with private sector players
Speaking of the summit, Director General of NCAA, Captain Chris Najomo said with the theme: “Repositioning the Nigerian Aviation Industry for Financial Capacity and Economic Viability: An Inclusive Regulatory Dialogue”, the event together to address service deficiencies and poor passenger experiences stemming from inadequate funding.
He said current effort by the Minister to engage aircraft manufacturers and aircraft leasing companies has engendered more confidence for Nigerian operators.
Represented by the Director, Airspace and Aerodrome standards, Engr. Godwin Balang, Najomo acknowledged that the ‘Nigerian economy is facing significant macroeconomic and developmental challenges, but they are surmountable through implementing innovative approaches.’
“No doubt, a sustainable regulatory framework built on collective engagement and strategic collaboration is critical to achieving operational excellence, enhanced productivity, and sector growth without compromising safety standards.
“With the support of this minister, we at NCAA are committed to rebranding, reinventing, and rejuvenating the Nigerian aviation sector for international competitiveness, sustainable growth and development.” he said.
Also speaking, Chairman , Senate Committee on Aviation, Abdulfatai Buhari said the upper legislative chambers is working on a bill that will mandate Nigerian airlines to have between four to five aircraft before they can start operations.
Buhari said the proposed bill is one way to address capacity issues leading to incessant delays and perennial flight cancellations.
Although, the regulatory authority had in July 2023, unveiled its policy stating that from January 2025, the minimum aircraft fleet of any airline providing scheduled such service in Nigeria would be six aircraft, as against the minimum of three aircraft, which has been the policy over the years, Buhari said despite stakeholders’ opposition, such bill is the way to go.
The NCAA policy also insisted that the maximum aircraft that must be airworthy out of that six aircraft should be four. This means that an airline is expected to ground its operations if it has less than four aircraft that is airworthy.
“Nigerian airlines should be professional, Nigerians want to see confidence, they want comfort and want to be assured of safety, if an airline has just two aircraft, it should operate within the confines of its capacity and not overburden itself with multiple routes than can’t be served.
“It is sad to experience delayed flights , we need to do the right thing for the sector to excell and compete favourably with our counterpart. We are working on a bill that will make it mandatory for prospective and existing airlines have minimum of four or five aircraft to start operations.’ he said.
On his part, Dr. Jekwu Ozoemene , of the Alternative Bank canvassed the establishment of an Aviation Development Fund to cater to the huge funding gaps in the sector covering airport infrastructure and airport navigation facilities.
He canvassed the liberalization of air transport policies , relaxed regulatory restrictions to attract private sector investment into the sector.
In his remarks, former DG NCAA, Dr. Harold Demuren said the summit could not have come at a better time than now that the sector needs to grow.
