Page 22 - LUA July - August 2023 Magterz and Online

SPECIAL REPORT

Can Nigeria’s new government

REDEEM AVIATION SECTOR?

Nigeria has a new government under the leadership of President Bola Ahmed Tinubu, who faces the
tough task of injecting stability into a society and pulling an economy out of a deep crisis. How will the
new government redeem the country’s turbulent aviation sector? Roy Ezze looks for answers.

viation and export cargo experts agriculture export sector, among others. Air by the former Minister of Aviation, Hadi
in Nigeria have expressed dismay The sustained high cost of operation has Sirika, without prior issuance of the Air
over the worsening condition of weakened Nigerian airlines’ ability to expand Operator’s Certificate (AOC) by the Nigerian
ANigeria’s air transport industry or compete favourably in the regional and Civil Aviation Authority (NCAA).
and agricultural export value-chain, which long-haul markets.
are still burdened by multiple taxation and Nigeria is also experiencing intermittent RESTRICTED AIR CARGO
harsh operating environment. Nigeria is protests by five key aviation unions over Currently, there is no scheduled air cargo
also yet to release about $812.2 million allegations of lack of transparency in the airline serving domestic routes in Nigeria
airline funds trapped in the country, which recent concession of Nigeria’s major airports. despite the urgent need for such services.
the International Air Transport Association The unions have also appealed to the new Nigeria’s agriculture and export sectors
(IATA) has said is the highest in the government in Nigeria to rescind the have faced challenges ranging from lack of
world. IATA recently said that, globally, decision to deduct 40% of revenue generated standardisation and infrastructure, over-
the blocked funds have increased “by 47% by aviation agencies, since such deductions taxation, inadequate regulation and rejection
to $2.27 billion in April 2023 from $1.55 threaten the safety and improvement of of various products by foreign markets.
billion in April 2022.” aviation in Nigeria. Nigeria’s domestic air cargo market has
Local and international air fares have Besides, the Airline Operators of Nigeria failed to grow over the decades, as farmers
remained high in Nigeria after the Covid-19 (AON) instituted a litigation over allegations and other exporters suffer the high cost
pandemic, and aviation stakeholders worry of lack of transparency in the setting up of air freight to foreign markets, or within
over the negative impact of these and other of Nigeria’s national carrier, Nigeria Air. Nigeria. Due to high taxes, air freight
issues on passenger numbers, as well as Nigeria’s apex legislative bodies have also services are not sustainable to connect
investments expected in aviation and related questioned the hurried launch of Nigeria perishable agricultural products like fruits

20 LUA JULY - AUGUST 2023