The Minister of Aviation, Hadi Sirika, and some airline operators engaged in a brickbat at the National Assembly on Wednesday over allegations of undue taxation, inefficiency, and conflict of interest.
While the operators accused the ministry and the Nigeria Civil Aviation Authority (NCAA) of imposing levies killing the sector, the minister advised the operators to look inwards into their management structure and inefficiency.
The disagreement was at the three-day public hearing on the six aviation Executive Bills which was concluded on Wednesday.
Amongst the bills considered were “A Bill for an Act to repeal the Civil Aviation Act, 2006 and to Enact the Civil Aviation Act for the Regulation of Civil Aviation in Nigeria and for Other Related Matters,” and “A Bill for an Act to repeal the Nigerian College of Aviation Technology Act and to Enact the Nigerian Aviation Technology Act to provide for its organisation, control and operation and for related Matters.
The Chairman, Chief Executive Officer of Overland Airways, Edward Boyo, in his presentation accused the NCAA of charging exorbitant taxes in connivance with the Ministry of Aviation.
He said this was responsible for high aviation fare while the agency was indifferent to standard and efficiency.
He stated that the local airlines were victims of obsolete legislation, calling for laws that would promote a friendly business environment.
He said, “The Airline Operators of Nigeria (AON) are victims of a hostile environment, because of legislation that is obsolete and therefore useless.
“The Senate should ask why are airlines dying in Nigeria? It is good that we are amending the laws with the hope that it will help the common man.
“The local operators are being demonized as not remitting charges. What we should ask is, what is the efficiency of these agencies taking the charges, translating to high cost for travellers?
“The airlines are dying and very soon there will be no airlines left. The operating environment is hostile.”
But Sirika said the indigenous airline operators were suffering from poor capital outlay, business plans, and administrative structure.
He said:” The airports must be run for profit, not charity. To explain why the airlines are failing are business plans and failure of their CEOs, you don’t blame their inefficiency on us.
“They should look at their business plans. For those that have gone into extinction, check the ownership structure and business plans.
“It is not debatable. They should be critical with business plans, governance structures, and capital outlay.
“Ask them about the maintenance plans for their aircraft. Most of them miss it from the business plan and governance structure, I don’t want to mention their names.”
Sirika said some of the taxes being complained about were products of legislations and beyond his Ministry and NCAA.
He assured that his ministry was committed to the growth of the industry.
“Nigeria encourages entrepreneurship, it is the biggest market in Africa and certainly aviation must thrive and the only way it can thrive is to have the best legislation in place.”
In his contribution, Chairman Bi-Courtney Group of Companies, Wale Babalakin (SAN), urged the Senate committee to consider an interface with the office of the Attorney General of the Federation and the Senate Committee on Judiciary, Human Rights and Legal Matters before ratifying the amendment.
Babalakin raised the alarm that certain provisions of the Bills were an infringement on the constitution.
Accusing the Federal Airport Aviation Authority of conflict of interest, he said, “The regulator can’t continue to be a competitor, it is a conflict of interest. We are being oppressed and it can’t continue. He who comes to equity must come with clean hands. “
