The federal government has projected that the aviation sector will soon be contributing 5 percent to Nigeria’s Gross Domestic Production (GDP), moving up from its current 0.6 percent.
Hadi Sirika, minister of aviation, said that upon complete implementation of the roadmap projects in the aviation sector, the sector’s contribution will rise from the current $1.7 billion to approximately $14.166 billion.
Sirika, said this at a press briefing in Abuja on Thursday which he jointly addressed with Lai Mohammed, Minister of Information and Culture, as part of the ongoing media discussions on President Buhari’s seven years scorecard.
The minister disclosed that by April 2023, all the road maps outlined for the sector would have been completed, as they are already at 90 percent. Upon full implementation of the roadmap, an estimated that 72,300 jobs; including 9,100 direct and 63,200 indirect will be created with twenty aircraft.
Quoting the International Air Transportation Association (IATA) 2020 study, the minister noted that air transportation has already created 241,000 direct and indirect jobs in the country.
The minister explained that the comprehensive roadmap was developed in 2016 and the components of the roadmap includes establishment of a National Carrier, development of Agro-Allied /Cargo terminals, concession of 5 International Airports (Abuja, Lagos, Enugu, Kano and Port Harcourt), Designation of Five (5) International Airports as Special Economic Zones, Formulation of Policy on Remotely Piloted Aircraft among others; most of which are expected to be completed or commence operation between the 4th quarter of 2022 and 1st quarter of 2023.
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December date still feasible for Nigeria Air take off
On the national carrier, the Minister confirmed to BusinessDay that the December date to commence operations is still feasible. He said the negotiation and finalization of the Full Business Case (FBC) is ongoing and the airline will commence operation of local and international flights.
Why Nigeria is partnering Ethiopia Airlines on Nigeria Air
Explaining why government is ceding Nigerian Air to Ethiopian Airlines, he said the airline emerged winner after a transparent bidding process, and is also one of the best in the world.
“Ethiopian Airline has been existing for 70 years, it is the only airline on earth that profited even during COVID-19 and the airline has declared $1 billion profit post COVID-19. They have long passed the 170 aircraft mark and they are receiving aircraft day in day out. They are the best and robust system that you can find,” Sirika said.
“Whether you like it or not, to have an airline to serve 200 million people, you must partner with a foreign airline. Ethiopian is the also second largest in Africa, connecting those two population and market is the best thing that can happen to Africa.”
He reiterated the need for African countries to integrate and expand trade under Africa Continental Free Trade Agreement.
He said the start up of the airline will gulp $350 million out of which the Ethiopian airline will provide 49 percent, the Nigerian government 5 percent and 46 percent from other investors.
Funds trapped because of ‘precarious situation‘
Speaking further, the minister assured of the readiness of the President Muhammadu Buhari administration to pay up the million trapped funds to foreign airlines. He said the funds will he paid in batches before December .
He explained that he reason for the delayed payment is because Nigeria went into another recession including challenges from COVID-19 which put Nigeria into a “precarious situation.”
He, however said Buhari has demonstrated commitment to pay, as he was able to up to $480 million trapped funds even during recession.
“One would have thought that since Buhari is responsible, and now that we are facing challenges, what is expected is that they should believe and trust us due to mutual benefits and not to ban us,” he said.
“Honestly, we need their services, but they need our market more. We are 250 million people and some of them are 10 million, so they need our market. They should give us some respect, dignity and honour as a sovereign country. These things can be mutually discussed, and we have demonstrated that can pay. We are appealing to them to understand our peculiarities and our problems.”
Speaking further on the achievements of president Muhammadu Buhari in the sector, the minister said Buhari’s legacy project would be the strengthening running civil aviation in Nigeria to run on the standard of ICAO and in line with global best practices; and to ensure that the industry will remain safe, secure , efficient and the most preferred mode of transportation.
“This is the legacy that I want presidnet Muhammadu Buhari to be remembered for,” he said.
He further informed that the Nigerian Aviation Sector is the second most recovered in the industry, following the development, from the scratch, of the protocols for the safe, secure, orderly restart of the aviation industry after COVID-19.
Sirika also said Nigeria has achieved a total radio coverage of its entire airspace, and has now developed the capacity to decode and decipher the ‘Black Box’ of aircraft in the event of any air crash.
The minister added that the Port Harcourt Airport, which was once called the worst in the world, is now the best under President Buhari, and For the first time in Nigeria’s history, the nation’s airports are being certified.
On Capacity building, he said the Buhari Administration increased the budget for training from $500,000 to $8 million. He also said a Boeing 737 simulator has been bought at a cost of $21 million to further build the capacity of pilots.
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