TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
No Result
View All Result

Aviation sector remains a messy field – Punch

The Editor by The Editor
May 4, 2023
in Public Affairs
A A
0
Nigeria Air project to gulp $300 – Fed Govt
23
SHARES
769
VIEWS
Share on FacebookShare on Twitter

The recent warning strike by aviation industry workers’ unions over sundry issues, including poor welfare packages and the government’s move to pull down a building housing some key agencies at the Murtala Mohammed International Airport, Lagos, refocuses public attention on Nigeria’s troubled aviation sector. Beyond the sit-ins, the recent purchase of firefighting trucks at controversial prices, the failed national carrier dream and the crisis of trapped funds of foreign airlines suggest that the President, Major General Muhammadu Buhari (retd.), and the Aviation Minister, Hadi Sirika, after eight years, are leaving the aviation sector in the messy state they met it.

The strike left hundreds of intending air travellers stranded and was called by the National Union of Air Transport Employees, Air Transport Services Senior Staff Association of Nigeria, National Association of Aircraft Pilots and Engineers, and the Association of Nigerian Aviation Professionals, who demanded, among other things, that the planned demolition of aviation agencies’ headquarters in Lagos be halted, and the implementation of earlier approved conditions of service for workers.

The government has made efforts, but these have not been enough to transform the sector. The crises bedevilling the industry are multi-faceted. Airlines are in precarious financial positions; maintenance facilities are patchy, and there is no national hangar that can handle major aircraft.Corruption and incompetence persist in the regulatory agencies, and the poor state of facilities raises safety concerns.

Apart from a few aircraft and flight frequencies in relation to the country’s population size, airfares are prohibitive. The National Bureau of Statistics’‘Transport Fare Watch’ report November 2022, showed that average cost of airfares in Nigeria increased by 97 percent, from N37,022.97 in November 2021 to N73,267.57 in November 2022. The trend has continued in 2023.

The rise is largely blamed on the aviation fuel shortages, which began in February 2022, and the plummeting naira exchange rate. JetA1 rose from N200 per litre in December 2021 to over N400pl in February last year; and to N800pl in2023. Local airlines now fly to neighbouring West African countries to source aviation fuel; international carriers have simply stopped refuelling in Nigeria.

The Airline Operators of Nigeria warned that if unresolved, the crisis would force airlines to suspend operations. It also identified multiple taxes as eroding the revenue of carriers, as well as regulatory, institutional, and structural challenges; poor infrastructure; and under-investment.

The government has prevented international airlines from repatriating about $802 million from the country mainly due to dollar shortage. Local laws stipulate that the airlines sell their tickets in naira, but the carriers have opened their foreign currency window for Nigerian travellers and selling tickets at prices double what is obtainable in Ghana for the same destinations.

With less than a month to go, the Buhari regime has not undertaken the promised concession of airports and creation of new airport cities (aerotropolis). It had hinged its aviation programme on the concession of the airports and listed some viable international airports for that purpose. Sirika in 2016 unveiled the Aviation Roadmap aimed at transforming the sector with deliverables like a new national carrier, Maintenance Repair and Overhaul facility, and creation of aerotropolises at major airports.

The Lagos, Abuja and Kano airports last year got designated concessionaires, but the process has stalled due to official tardiness and opposition by the unions.

Instead of reforming the statutory agencies for efficiency, and creating an enabling and liberalised environment for private domestic and foreign investment, Buhari and Sirika have been fixated on a government-promoted ‘national carrier,’ wasting time and resources in that forlorn quest.

The unions too should change their mindset. Current realities and the future of the aviation and allied hospitality and tourism sectors lie with private capital, not government ownership and control. The transformation of the sector through airports and allied facilities development are better left in the hands of private investors for efficient service delivery, profitability, and job creation. Their persistent opposition to privatisation and concession is retrogressive.

Markets N Research estimates the global airline market size at $513.5 billion (2022) and is forecast to reach $635.8 billion by 2030.Africa’s aviation market was valued at over $80 billion by the World Economic Forum in 2019 and projected to reach $176 billion by 2040. Nigeria’s current value of $600 million, a meagre 0.04 percent of GDP, is pathetic.

With other stakeholders, unions should insist on transparent asset sale and concessions only to competent investors and operators that combine expertise, global track record, name recognition, financial and technical capability. They should form investment vehicles and seek financial partners to position their members as investors, including the management buy-out option.

Aviation is an international business; countries that make their environment most attractive to investors under liberalised regulatory frameworks are the winners. Britain’s privatisation and liberalisation has seen Global Infrastructure Partners led by a Nigerian, Adebayo Ogunlesi, winning concessions for three major airports in the country, and with other investments in several other airports, seaports, and energy infrastructure around the world.

The unions’ call for a comprehensive forensic audit of the projects undertaken under the Aviation Roadmap is on target; their opposition to further approvals for new airports by state governments is also right as most of the country’s 32 airports are not commercially viable; governors build idle, unviable airports as political projects.

The new MMIA terminal opened in March 2022 has virtually been abandoned by airlines due to design flaws. Touting and lax security, which manifests in lack of perimeter fence, invasion by grazing animals, infiltration by stowaways and bandits, and terrible sanitary conditions prevail at Nigeria’s international airports.

Consequently, none is rated among the first 10 in Africa. The top three rated by Skytrax in 2021 are all in South Africa, followed by one each in Mauritius and Morocco respectively. There are bright spots like winning long-sought IATA certification.

The incoming government should avoid Buhari’s and Sirika’s inertia and vigorously prosecute a liberalisation programme to attract investments, create jobs, infrastructure, and facilitate competitive Nigerian-owned private airlines of global standard that would utilise the country’s Bilateral Air Service Agreements for maximal national benefit.

Share9Tweet6
Previous Post

Doguwa stays in House Speaker race despite alleged murder trial

Next Post

Nigeria’s World Cup dream on edge as Morocco beat Golden Eaglets 1-0

Related Posts

May 29: Tinubu announces 13 appointments into Presidential Inauguration Committee
Public Affairs

Tinubu: Health, education require radical reforms – Punch

June 4, 2023
Too many buildings are collapsing – Punch
Public Affairs

Too many buildings are collapsing – Punch

May 10, 2023
Don’t believe PDP again – Senate President tells Gombe youths
Headlines

Senate’s dangerous dabbling in religion – Punch

May 9, 2023
The Buhari Years: How the anti-corruption war floundered – Punch
Public Affairs

The Buhari Years: How the anti-corruption war floundered – Punch

May 5, 2023
Nigeria at critical juncture – Vanguard
Public Affairs

As Nigerians slip away from happiness – Guardian

May 4, 2023
The Buhari Years: An era of gross economic fiasco – Punch
Latest News

The Buhari Years: An era of gross economic fiasco – Punch

April 28, 2023
Next Post
Nigeria’s World Cup dream on edge as Morocco beat Golden Eaglets 1-0

Nigeria’s World Cup dream on edge as Morocco beat Golden Eaglets 1-0

Nigeria at critical juncture – Vanguard

As Nigerians slip away from happiness - Guardian

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

FROM THE GRASSROOTS

Katsina Emirate sacks district head with ties to terrorists

Gunmen kill youth leader in Rivers community

by The Editor
May 4, 2023
0

...

Enugu: SUMAS, among Gov. Ugwuanyi’s greatest achievements, says Vice Chancellor

Enugu: SUMAS, among Gov. Ugwuanyi’s greatest achievements, says Vice Chancellor

by The Editor
April 20, 2023
0

...

Baze Varsity matriculates 1,224 students

Baze Varsity matriculates 1,224 students

by The Editor
April 18, 2023
0

...

Abia court stops ABSIEC from holding LG poll

Abia court stops ABSIEC from holding LG poll

by The Editor
April 18, 2023
0

...

APPOINTMENTS

Pres. Buhari nominates Shonubi as new CBN deputy governor

Meet acting CBN Governor, Folashodun Shonubi

by The Citizen
June 9, 2023
0

...

Nasarawa Assembly faction approves 20 Special Advisers for gov Sule

Nasarawa Assembly faction approves 20 Special Advisers for gov Sule

by The Citizen
June 8, 2023
0

...

Sanwo-Olu doubles Lagos students’ bursary

JUST IN: Sanwo-Olu reappoints Chief of Staff, others

by The Citizen
June 8, 2023
0

...

Kingsley James emerges captain as J9C elects new exco

Kingsley James emerges captain as J9C elects new exco

by The Editor
June 7, 2023
0

...

ODDITIES

Sweden declares sex as sport, to host competition

Sweden declares sex as sport, to host competition

by The Editor
June 4, 2023
0

22-year-old Kano man stabs mother to death

22-year-old Kano man stabs mother to death

by The Editor
May 5, 2023
0

Nigerian woman in UK on trial for starving son to death

Nigerian woman in UK on trial for starving son to death

by The Editor
April 28, 2023
0

State of the States

Edo State gets approval to build new airport

Fuel subsidy: Edo increases minimum wage, approves three days’ work week

by The Editor
June 7, 2023
0

...

Sanwo-Olu vows prudence with N115bn bond

Sanwo-Olu vows prudence with N115bn bond

by The Editor
May 24, 2023
0

...

Obaseki receives Atiku, Ooni, seeks improved collaboration

Gov. Obaseki sacks 200 aides, commissioners

by The Editor
May 4, 2023
0

...

Edo State introduces revenue scratch cards

Obaseki condoles with Chief Imam of Benin Kingdom over mother’s death

by The Editor
April 20, 2023
0

...

  • Trending
  • Comments
  • Latest
UK licenses 266 Nigerian doctors in two months

UK licenses 266 Nigerian doctors in two months

August 3, 2022
Fed Govt orders telcos to reverse hike in call, data rates

NCC sets record clear in alleged leakage of Obi-Oyedepo call

April 4, 2023
Military will not rest until Book Haram is annihilated, says Army Chief

Shake-up in army

January 8, 2023
May Edochie finally speaks about husband’s second wife

I will not be cajoled into accepting polygamy, says May Edochie

December 24, 2022

Air Peace begins operations, offers airfare to Armed Forces personnel

170

Diezani breaks silence, reveals side of story in 3-part exclusive interview

26

FG’s N4trn contractual debts under Jonathan – National Mirror

21

2015: Washington Post condemns Jonathan for campaign slogan

20
Tinubu denies withdrawal from presidential race

Nigeria can’t continue to be Father Christmas to neighbouring countries

June 9, 2023
Defection: Court fixes date for final address in PDP suit against Matawalle

Over 40 Vehicles Recovered From Matawalle – Zamfara Govt

June 9, 2023
Pres. Buhari nominates Shonubi as new CBN deputy governor

Meet acting CBN Governor, Folashodun Shonubi

June 9, 2023
Kwankwaso readies to dump PDP for NNPP

Demolition: Tinubu shocked by Ganduje’s atrocities as governor – Kwankwaso

June 9, 2023

GLOBAL NEWS

Prince Harry, Meghan give up royal titles, repay £2.4m to Queen

Prince Harry: I couldn’t trust anybody due to phone hacking

by The Citizen
June 7, 2023
0

...

Ukraine dam: UN warns of ‘grave consequences’ as thousands flee homes

Ukraine dam: UN warns of ‘grave consequences’ as thousands flee homes

by The Citizen
June 7, 2023
0

...

Mike Pence rebukes Trump for insinuating VP powers to overturn 2020 presidential election

Ex-US Vice President Pence Declares For White House Race

by The Citizen
June 5, 2023
0

...

Israelis to rebuild Jewish temple on Al-Aqsa site

Israelis to rebuild Jewish temple on Al-Aqsa site

by The Citizen
June 5, 2023
0

...

Royal Family: I left most damaging claims out of memoir, says Prince Harry

Prince Harry to make history with UK court testimony

by The Citizen
June 5, 2023
0

...

EDITORIAL REVIEW

May 29: Tinubu announces 13 appointments into Presidential Inauguration Committee

Tinubu: Health, education require radical reforms – Punch

by The Editor
June 4, 2023
0

Too many buildings are collapsing – Punch

Too many buildings are collapsing – Punch

by The Editor
May 10, 2023
0

Don’t believe PDP again – Senate President tells Gombe youths

Senate’s dangerous dabbling in religion – Punch

by The Editor
May 9, 2023
0

The Buhari Years: How the anti-corruption war floundered – Punch

The Buhari Years: How the anti-corruption war floundered – Punch

by The Editor
May 5, 2023
0

Nigeria at critical juncture – Vanguard

As Nigerians slip away from happiness – Guardian

by The Editor
May 4, 2023
0

Opinion

Fed Govt moves to remove fuel subsidy

We all support fuel subsidy removal but…you are still missing the point

by The Editor
June 2, 2023
0

...

Atiku storms court for hearing of petition against Tinubu

Atiku storms court for hearing of petition against Tinubu

by The Editor
May 11, 2023
0

...

Between Adichie and Shettima

Buhari doesn’t deserve forgiveness

by The Editor
April 27, 2023
0

...

EFCC arraigns Kogi governor’s wife for alleged N3bn fraud

Police, EFCC and a citizen’s dilemma

by The Editor
April 17, 2023
0

...

  • UK licenses 266 Nigerian doctors in two months

    UK licenses 266 Nigerian doctors in two months

    127 shares
    Share 51 Tweet 32
  • NCC sets record clear in alleged leakage of Obi-Oyedepo call

    66 shares
    Share 26 Tweet 17
  • Shake-up in army

    61 shares
    Share 24 Tweet 15
  • I will not be cajoled into accepting polygamy, says May Edochie

    53 shares
    Share 21 Tweet 13
  • Why I didn’t remarry — Patience Ozokwo

    48 shares
    Share 19 Tweet 12
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2022 TheCitizen Ng. All Rights Reserved.

No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2022 TheCitizen Ng. All Rights Reserved.