Former President, Aviation Safety Roundtable Initiatives, ART, Dr. Gbenga Olowo, has urged airline operators, stakeholders to embrace diversification, rigorous oversight, and flexible financing options to strengthen the sector’s financial resilience.
Speaking at the 29th annual conference of the League of Airport and Aviation Correspondents (LAAC) in Lagos, under the theme: “Aviation Financing in Nigeria: The Risks, Opportunities and Prospects,” he stressed that profitability alone was not enough to guarantee long-term sustainability.
Dr. Olowo represented by Mrs. Mary Olowo-Soyeke said, there is not one way to skin a cow or cook a fish, underscoring the importance of reinvesting surplus income into ventures that could yield additional returns.
He warned that a narrow focus on profit-and-loss statements was inadequate, pointing instead to the need for close monitoring of cash flow and liquidity factors that determine whether a company can seize growth opportunities when they arise.
Addressing the challenges faced by new entrants into Nigeria’s aviation market, the aviation expert recommended leasing aircraft over outright purchase, noting that the latter often burdens airlines with long-term debt obligations.
According to him, leasing provides flexibility, lower entry costs, and the ability to operate modern fleets without assuming full ownership risks.
This approach, the expert argued, is especially vital in a capital-intensive industry where access to foreign currency is volatile.
Dr. Olowo also called for stronger government intervention in aviation financing, including the introduction of export credit facilities to help domestic airlines expand their fleets and route networks.
Citing examples of how strategic funding could transform airline operations, allowing for innovations in infrastructure and service delivery.
However, the former ART president acknowledged that the volatile foreign exchange environment remains a major obstacle.
He warned, “That cost, eventually has to be passed on to the passenger, because it cannot simply remain on the company’s balance sheet.”
Reporting by Nosa Aituamen