Keyamo pushes for better aircraft leases, infrastructure development

…..as senate to introduce bill requiring Airlines to own minimum of four aircraft

The Minister of Aviation and Aerospace Development Mr. Festus Keyamo says, Nigeria’s Aviation sector needs Infrastructure financing to achieve financial capability and economic viability.

The Minister stated this at the South West Regional Air Transportation Summit (SWATS) 2024, in Lagos with the theme “Repositioning the Nigerian Aviation Industry for Financial Capability and Economic Viability: An Inclusive Regulatory Dialogue.”

According to Mr. Keyamo, despite Nigeria’s improvement in ratings from 49% to over 70%, the country must continue to adhere to the Capetown Convention (CTC), which has renewed confidence in the economy, particularly in aircraft lease agreements.

The Minister represented by the Managing Director Federal Airports Authority of Nigeria, FAAN, Mrs Olubunmi Kuku stressed the importance of better aircraft lease arrangements, which will lead to an increase in fleet size and a reduction in flight delays caused by lack of capacity.

“We see an increase in the fleet size in our market to reciprocate BASA and have an impact on flight delays which were before now, due to lack of capacity. To achieve that, we need to finance all the necessary infrastructure “.

He also pledged that the government will continue to improve the skills of operators, pilots, and other practitioners in the industry, as well as engage with the private sector in areas such as airport contracts and concession arrangements.

The Minister advised that there is a need to review the Civil Aviation regulatory aspects to ensure financial prudence and accountability. 

He emphasized that government agencies must leverage technology to reduce operational costs and explore new revenue streams.

Chairman, Senate Committee on Aviation, senator Abdulfatai Buhari, announced that the Senate is drafting a bill that would require Nigerian airlines to own a minimum of four to five aircraft before commencing operations. 

According to him, this proposed legislation comes in response to the regulatory authority’s July 2023 announcement of a minimum fleet size of six aircraft, which had been met with opposition from industry stakeholders.

The Acting Director General, Nigerian Civil Aviation Authority (NCAA), Captain Chris Najomo, highlighted the objectives of the summit, which include advocacy for adequate funding and sound financial management, operational safety, and the review and enhancement of existing service standards to align with international standards.

“We trust that the outcome will signal a new era of inclusive regulatory practices, fostering sector growth, safety, service excellence, and improved passenger experiences”.

Captain Najomo represented by the Director, Aerodrome and Airspace Standards, Mr. Godwin Balang also emphasized the importance of the aviation sector in national economic development, international trade, and investment opportunities.