The Federal Government on Monday received the Outline Business Case certificates for the proposed aviation leasing company and the maintenance, repair and overhaul facility.
Both certificates were received on behalf of the government by the Minister of State for Aviation, Senator Hadi Sirika, from the Infrastructure Concession Regulatory Commission at the headquarters of the Aviation ministry in Abuja.
Sirika stated that with the receipt of the certificates, the Federal Government would now proceed to the next stage in its drive to establish an aviation leasing firm and a maintenance and repair facility in Nigeria.
He said the government recently announced the transaction advisers for the leasing firm and the MRO, adding that with the certificates, the advisers would be empowered to take further steps in their duties.
Sirika noted that the development would enable the government to begin work on the procurement for the aviation leasing firm and the MRO, and thanked the ICRC for making sure that the certificates were issued after all due processes were completed.
The Acting Director-General, ICRC, Chidi Izuwah, said the MRO was the most important link in the aviation value chain as the major consideration in the industry was safety.
He stated, “Considering the importance of the MRO, it is incomprehensible that none exists in the West African region 98 years after the first aircraft landed in the country in 1920.
“The lack of an MRO has had a negative impact on the survival of airlines in the country, as airlines have struggled to maintain their fleet or stay in business for consistently long periods as seen in other climes due to the exorbitant cost of maintenance that isn’t available locally and the time it takes to fly the aircraft for checks.”
On the leasing firm, Izuwah said it was estimated that about 70 per cent of commercial aircraft in Nigeria were leased and 50 per cent of the fleet globally.
He noted that despite the obvious market for aircraft leases, the West African region did not have a single aviation leasing company and relied solely on leasing firms in Europe, North America and Asia for aircraft.
“Nigeria is grossly underserved in the provision of aircraft, with only 48 functional aircraft operated by eight airlines serving a population of over 180 million people with over 30 airports. This low number of aircraft is not unconnected with the challenges of securing favourable leases,” he added.
