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

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.

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

In 2027 elections, voter apathy looms large – Punch
Public Affairs

In 2027 elections, voter apathy looms large – Punch

May 18 2026
Oyo school attacks: A call to action for South West governors – Punch
Public Affairs

Oyo school attacks: A call to action for South West governors – Punch

May 17 2026
Urgent measures needed against hantavirus – Punch
Public Affairs

Urgent measures needed against hantavirus – Punch

May 10 2026
Nigeria at critical juncture – Vanguard
Public Affairs

The cost of living crisis is becoming a national emergency – PM News

May 7 2026
Robbers on the rampage – Punch
Public Affairs

Robbers on the rampage – Punch

May 7 2026
Public Affairs

Outrageous extrajudicial Delta police killing – Punch

May 5 2026
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

Alaafin urges FG to strengthen native intelligence after Oyo school attacks

Alaafin urges FG to strengthen native intelligence after Oyo school attacks

by The Editor
May 17 2026
0

...

Gov. Adeleke deposes Oba Joseph Oloyede, Apetu of Ipetumodu

Gov. Adeleke deposes Oba Joseph Oloyede, Apetu of Ipetumodu

by The Editor
May 12 2026
0

...

Ebonyi State lifts 3-month curfew after bloody boundary crisis

Ebonyi State lifts 3-month curfew after bloody boundary crisis

by The Editor
May 5 2026
0

...

Ondo community begs Gov. Aiyedatiwa to intervene in regent appointment crisis

Ondo community begs Gov. Aiyedatiwa to intervene in regent appointment crisis

by The Editor
April 30 2026
0

...

APPOINTMENTS

Tinubu creates Homeland Security adviser role, appoints ex-army general

Tinubu creates Homeland Security adviser role, appoints ex-army general

by The Editor
May 11 2026
0

...

Soludo appoints MDs for three Anambra agencies

Soludo appoints MDs for three Anambra agencies

by The Editor
May 4 2026
0

...

Tinubu seeks Omidiran, 28 others’ confirmation as FCC members

Tinubu approves immediate assignment of four new permanent secretaries

by The Editor
May 4 2026
0

...

FirstBank confirms appointment of Olayinka Ijabiyi as Group Head, Marketing & Corporate Communications

FirstBank confirms appointment of Olayinka Ijabiyi as Group Head, Marketing & Corporate Communications

by The Editor
May 1 2026
0

...

ODDITIES

Hoodlums rape Lagos sexagenarian to death

Hoodlums rape Lagos sexagenarian to death

by The Editor
May 18 2026
0

Woman allegedly beats 9-yr-old stepdaughter to death

Woman allegedly beats 9-yr-old stepdaughter to death

by The Editor
May 12 2026
0

Police begin disciplinary action against officer in viral misconduct video

Police begin disciplinary action against officer in viral misconduct video

by The Editor
May 10 2026
0

GLOBAL NEWS

WHO declares global health emergency over Ebola outbreak in Congo, Uganda

WHO declares global health emergency over Ebola outbreak in Congo, Uganda

by The Editor
May 18 2026
0

...

Trump to visit China for high-stakes talks with Xi Jinping

Trump to visit China for high-stakes talks with Xi Jinping

by The Editor
May 12 2026
0

...

Macron in fresh push to rebuild France-Africa partnership

Macron in fresh push to rebuild France-Africa partnership

by The Editor
May 12 2026
0

...

Instagram ends support for end-to-end encrypted DMs

Instagram ends support for end-to-end encrypted DMs

by The Editor
May 8 2026
0

...

New York governor bans ICE agents from wearing masks

New York governor bans ICE agents from wearing masks

by The Editor
May 7 2026
0

...

State of the States

Insecurity: I can end banditry in two months, says Zamfara governor

Zamfara approves pension, salary review for retirees

by The Editor
May 18 2026
0

...

Gov. Radda gifts cars to outstanding Katsina students

Gov. Radda gifts cars to outstanding Katsina students

by The Editor
May 12 2026
0

...

Okpebholo promises justice for slain UNIBEN student

Okpebholo promises justice for slain UNIBEN student

by The Editor
May 11 2026
0

...

Gov. Mbah pledges to end road crashes in Enugu

Enugu govt to build 660MW coal-fired power plant

by The Editor
May 7 2026
0

...

Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
Xenophobic attacks: Oshiomhole seeks withdrawal of MTN, DSTV licences

Oshiomhole clinches Edo North APC senatorial ticket

May 18 2026
Sahara Energy Resource wins TXF Revolving Credit Facility of the Year Award

Sahara Energy Resource wins TXF Revolving Credit Facility of the Year Award

May 18 2026
WHO declares global health emergency over Ebola outbreak in Congo, Uganda

WHO declares global health emergency over Ebola outbreak in Congo, Uganda

May 18 2026
EFCC to apologise to doctors after Uyo hospital raid

EFCC to apologise to doctors after Uyo hospital raid

May 18 2026

EDITORIAL REVIEW

In 2027 elections, voter apathy looms large – Punch

In 2027 elections, voter apathy looms large – Punch

by The Editor
May 18 2026
0

Oyo school attacks: A call to action for South West governors – Punch

Oyo school attacks: A call to action for South West governors – Punch

by The Editor
May 17 2026
0

Urgent measures needed against hantavirus – Punch

Urgent measures needed against hantavirus – Punch

by The Editor
May 10 2026
0

Nigeria at critical juncture – Vanguard

The cost of living crisis is becoming a national emergency – PM News

by The Editor
May 7 2026
0

Robbers on the rampage – Punch

Robbers on the rampage – Punch

by The Editor
May 7 2026
0

Opinion

The dangers of a one-party state

The dangers of a one-party state

by The Editor
May 5 2026
0

...

Dear Senator Tinubu, Buhari has thrashed us all!

NBC’s real struggle

by The Editor
April 30 2026
0

...

Even INEC admonishes the media?

Even INEC admonishes the media?

by The Editor
April 12 2026
0

...

Enugu: Gov Mbah presents N521.5bn budget for 2024

Mbah: From contested mandate to constructive governance in Enugu

by The Editor
April 9 2026
0

...

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.

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

© 2026 TheCitizen Ng. All Rights Reserved.