The Nigerian Aviation sector embarked on a determined mission in 2023, unveiling a five-point agenda to reshape itself into a secure, profitable, and vibrant domain.
Despite notable setbacks, the industry showcased resilience and growth.
The specter of the Nigeria Air project’s failure lingered, revealing controversies and opposition from stakeholders, notably the Airline Operators of Nigeria (AON).
Their concerns ranged from the involvement of a perceived enriching strategic investor to demands for tax-free holidays, prompting legal action against the Federal Government.
One of the operators, Mr. Roland Iyayi said, “This is an airline being set up using the government as a face but owned by private individuals. That is my contention and I think on that basis, it should be stopped”.
Despite the opposition, the former minister of aviation, Hadi Sirika and the Ethiopia Air Management “unveiled” the airline without obtaining the requisite approvals from regulatory authorities.
According to stakeholders, “They asked for tax waivers for 5 years, you granted them to come and compete with your local airlines who are paying those heavy taxes, who does that? It is an insult to our sovereignty, it should not be allowed”.
Labor unions fiercely opposed the proposed concession of major international airports, leading to a partial air travel lockdown. However, a truce was eventually reached, ensuring written assurances from the government to safeguard jobs and entitlements.
Amidst these challenges, the industry saw the establishment of new airlines and operational airports in various states, fostering economic development and job opportunities.
The new Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, prioritized infrastructure upgrades and addressed imbalances in Bilateral Air Services Agreements (BASAs). Nigeria’s agreements with African and Middle Eastern countries aimed to enhance air connectivity and facilitate the return of others.
Persisting challenges included trapped funds, with concerns raised by industry leaders and calls for the government to address the issue seriously.
According to the International Air Transport Association, IATA, Nigeria has the highest amount of airlines’ blocked funds at $792m followed by Egypt, $348 million, Algeria, $199 million, AFI zone, $183 million and Ethiopia, $128 million.
IATA’s Regional Vice President Africa & Middle East, Kamil Al-Awadhi, during a media presentation with African journalists at the IATA Global Media Day in Geneva, called on the Federal Government to take the matter seriously.
“It is getting to a breaking point for the airlines. They are contemplating stopping operations. Nigeria should look into this to resolve the issue. The airlines don’t have the cash to expand their operations”.
The sector also faced incidents such as fuel contamination, runway mishaps, and flight plan errors, prompting attention from the National Assembly Committees on Aviation.
In response to concerns, a meeting of stakeholders convened in Lagos, addressing issues like agency duties, underhand dealings, illegal taxes, and infrastructure deficits.
As 2023 transitioned into 2024, leadership changes occurred, with new appointees outlining their focus on safety, security, economic health, and customer satisfaction.
Looking ahead to 2024, the Aviation Minister proposed a budget of N36 billion for the industry development, plus an extra N81 billion for the Nnamdi Azikiwe International Airport, Abuja second runway completion, emphasizing collaboration between the government and stakeholders to build a robust Nigerian Aviation Sector.
Despite challenges, optimistic signs suggest the industry is poised to navigate potential turbulence with collective effort and collaboration.