Those of us who rush to the Victor Attah International Airport to catch early morning flights from Akwa Ibom State are accustomed to a familiar sight: airport workers, some wearing reflective safety vests, waiting by the roadside and flagging down motorists for lifts to the airport. I often wonder how many of them get lucky each day. Thankfully, this situation will change within a year, as the state government completes the 117 residential apartments being built for these workers. Dubbed the Aviation Village, the residential estate spans 15.072 hectares within the airport premises. It will include 62 two-bedroom bungalows and 55 three-bedroom bungalows to accommodate both state and federal workers from 12 agencies, including the Ibom Airport Development Company Limited, MRO, NAHCO, NCAA, FAAN, NEMA, Customs, NDLEA, and Immigration Services. The estate will also feature a primary school, shopping centre, recreation facilities, and healthcare services.
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The Akwa Ibom State government is making significant investments in the aviation sector to bolster its weak industrial and commercial base. With an internally generated revenue (IGR) of ₦43.8 billion in 2023, the state ranks fourth in the Niger Delta and tenth in Nigeria. However, the government aims to increase this figure significantly, projecting ₦62.5 billion for fiscal 2024, driven by dividends from its state-owned airline, Ibom Air, and earnings from the Maintenance, Repair, and Overhaul (MRO) facility.
Ibom Air is expected to become a major revenue earner for the state starting next year. Although the airline broke even in 2022, three years after commencing operations, it slipped back into the red in 2023 due to the massive devaluation of the naira. With increased earnings and effective cost control measures in 2024, Ibom Air has returned to profitability and is on track to declare its first dividend in 2025. The airline has experienced remarkable growth, outperforming expectations in a country where many privately-owned airlines and even the national carrier have failed. According to industry sources, Ibom Air generates daily revenues of between ₦700 million and ₦900 million, enabling it to meet its financial obligations.
Prudent management, reliable and high-quality service, and strict adherence to corporate governance are key factors in the airline’s success. Additionally, non-interference from the government and politicians has been instrumental. A senior official noted, “Even the governor pays for his ticket whenever he travels with us, and he’s never interfered with our activities, including staff recruitment.” Of the airline’s nine planes, seven were financed with bank loans, while the last two were funded through shareholder loans at concessionary rates, saving the airline from crippling interest charges. Inspired by Ibom Air’s success, no fewer than five other states, including Lagos and Ebonyi, are considering launching their own airlines.
The MRO facility, another critical project, is expected to generate significant revenue for the state. Currently providing limited services to Ibom Air, the facility is nearing full completion and has already attracted interest from several African airlines. When fully operational, it will be one of only four such facilities in Africa, alongside those in Ethiopia, Morocco, and South Africa. African airlines spend hundreds of millions of dollars annually on maintenance and repairs abroad, and Akwa Ibom hopes to capture a share of this market. For instance, Ethiopian Airlines disclosed in 2019 that its MRO facility generates $80 million annually. The Akwa Ibom government is optimistic that the MRO will contribute significantly to its projected 28 percent IGR growth, reaching ₦80 billion by 2025.
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During the groundbreaking ceremony for the Aviation Village, Governor Umo Eno reiterated his commitment to expanding the state’s aviation ecosystem and pledged to make Akwa Ibom Nigeria’s major aviation hub in the Gulf of Guinea. The state has constructed a modern, fully automated airport terminal, set to be operational by December. Ibom Air plans to acquire more aircraft next year, opening new regional routes to Cameroon, Equatorial Guinea, Kenya, and Rwanda directly from Uyo. Plans for a direct flight to Atlanta are also in the works, which would establish Akwa Ibom as Nigeria’s second aviation hub after Lagos.
The government is betting on aviation to help the state reduce its dependence on federal allocations and grow its economy. Currently, over 3,000 people are employed directly and indirectly in the sector, with numbers expected to rise as the fleet and facilities expand. A recent report by BudgIT highlighted the overdependence of 32 states on federal allocations, leaving them vulnerable to external shocks like a crash in crude oil prices. Akwa Ibom’s strategic investment in aviation could serve as a blueprint for other states seeking to diversify their economies and achieve sustainable growth.
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