Following the slow recovery of the aviation sector from the COVID-19 pandemic and other challenges plaguing it, stakeholders, on Thursday, urged the Federal Government to consider a stimulus package for operators in the industry.
“The current economic situation, foreign exchange scarcity, rising inflation, and inadequate infrastructure are factors that are plaguing the sector. To chart a new direction for the sector, all stakeholders have a role to play,” Osayaba Giwa-Osagie, chairman of Nigeria-South Africa Chamber of Commerce (NSACC), said during the October breakfast meeting of the NSACC sponsored by Philips Consulting to celebrate its 30th anniversary, yesterday in Lagos.
According to Giwa-Osagie, the government must consider a stimulus package to support airlines in aiding their smooth operations.
He also emphasised the need for the government to implement policies and develop infrastructure that will strengthen the sector.
“Also stakeholders should constantly engage the government on ways to reposition for profitability and competitiveness. Air operators should adopt creative initiatives to help manage cost and build efficiencies,” Giwa-Osagie said.
He stated that the aviation industry was a veritable tool for income generation and economic development in Nigeria. “The Nigeria aviation industry has grown in size, capital, investment, safety and quality management system. The sector is fundamental in facilitating trade, investment and tourism.”
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Quoting the National Bureau of Statistics, Giwa-Osagie said “the aviation industry contributed at least N117.3 billion to Nigeria’s economy within the first half of 2022. The Bureau in its Nigeria Gross domestic report second quarter 2022, stated that the sector raised 84.7 million in the first quarter and 32.6 billion in the second quarter,” Giwa-Osagie said.
Also, George Uriesi, the chief operating officer, Ibom Air and guest speaker at the breakfast meeting, said domestic airline operators must be creative in accessing capital. According to him, the airlines need a level-playing field to thrive.
Speaking on ‘Aviation in Nigeria: What next? Uriesi said there was a need for players in the sector to embrace good corporate governance in their day-to-day operation. “We have the market to thrive,” he said.
Samuel Bamidele, head of research and intelligence at Philips Consulting Limited, said “Nigeria’s aviation industry is growing and recovering faster from the pandemic than global projection.” He stated further that while there are several pressure points or challenges facing operators in the industry, he expected the industry to continue on a positive trajectory.
He said, “One of the highlights of Phillips Consulting’s aviation survey report is the low capacity in the industry, which we infer from challenges passengers face with securing urgent tickets and increased costs for late bookings.
“In addition, we found that 16.24 percent of survey respondents do not prefer any airline, indicating that existing competition and potential new entrants are strong challengers for market share,” Bamidele said.
