Stakeholders demand increased investment in Nigeria’s aviation sector 

Stakeholders in the aviation industry have called for more investment in aviation sector in a bid to spur economic growth.

The experts express worry that there has been a steady reduction of airline operations because the industry is not attractive to investors.

 They attributed, this to the low profit margin in the sector, amid high cost of investment and no assurance of long-term success.

Since 2015 many airlines have gone under which include Discovery Air, First Nation Airways and recently Medview Airline, IRS Airlines and Associated Aviation; so currently Nigerian airlines on scheduled flight operate include Arik Air, Air Peace, Dana Air, Overland Airways, Azman Air and Max Air.

Operating aircraft has also declined from about 90 aircraft in 2015, to 53 currently with Air Peace having 26, Arik Air, 11, Dana Air six, Overland six Azman Air two and Max Air, three.

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Some of these aircraft are currently on maintenance and therefore not operating.

Adamu Abdullahi, the Director of Consumer Protection, Nigeria Civil Aviation Authority (NCAA), said that the federal government was willing to offer incentives to investors because things are tough for the aviation industry right now.

 “The potential for profitability for investors is there. Government can give waiver if an investor comes with new ideas. Ethiopia Airlines was given concession when it agreed to operate to Kaduna airport during the reconstruction of Abuja airport runway. Government will be willing to give incentives because other countries are doing the same for their airlines,” Abdullahi said.

John Ojikutu, the Secretary of the Aviation Round Table (ART) and former Commander of the Murtala Muhammed International Airport (MMIA),   disclosed that passengers who planned to travel for the yuletide, had difficulty as some of them were delayed at some airports due to airlines’ inability to lift them to their destinations.

 “How many aircraft are in the fleet of the domestic operators and how many are flying? It does not appear up to 50 per cent of available aircraft are flying, hence the exploitation of the travelers. Air tickets have gone up to almost thrice the normal price,” he said.

According to Ado Sanusi, the Chief Executive Officer, Aero Contractors,  said “I think the industry needs a kind of re-organisation. It needs a kind of jolt because if you look at it this year, a lot of airlines have gone under. Medview has gone to one aircraft operation and a lot of other airlines have gone to one aircraft operation.

“Despite the fact that the passenger growth has increased, but the amount of aircraft operating in the country has reduced. Now what does that goes to tell you? It tells you that the aviation industry is not growing. The aviation industry actually is shrinking.

“Despite the fact that the passenger demand is high but the growth in the airlines are going down. The passenger growth is increasing; the market is expanding, but unfortunately the aircraft are reducing in numbers. And the reason is basically no investment coming in,” he added.