Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, has called on Nigerian banks to return to the aviation sector and provide the much-needed financial lifeline for local carriers.
He stressed that the industry has been restructured and is now ripe for investment.
Speaking at an airline event in Lagos, the Minister said no sector can thrive without the active support of financial institutions.
He appealed to banks to resume financing aircraft acquisition and leasing for domestic airlines, assuring them that the recalibrated aviation ecosystem offers better prospects for returns on investment.
“You used to run away from us, but now you can come back. We have cleaned up the system. If you finance aircraft acquisition or leasing today, you will get your money back”.
The Minister lamented that despite Nigeria’s status as a major aviation hub, foreign airlines currently dominate the market, lifting about 95 percent of international passengers.
He expressed concern that billions of dollars are leaving the country every year through ticket sales by foreign carriers, money that should strengthen the local economy.
“We welcome foreign airlines, but I would prefer to see Nigerian flag carriers dominate international routes. Imagine if those passengers were flying our own airlines, the jobs, the revenue, and the multiplier effects would remain in our ecosystem”.
The minister revealed that he has recently granted multiple international route approvals to Nigerian airlines, including destinations in Europe and North America, emphasizing that government is committed to removing past bureaucratic bottlenecks that hindered growth.
He further noted that local carriers have a unique advantage, as they can sell tickets in naira, unlike foreign airlines struggling to repatriate earnings in dollars.
According to him, this creates a competitive edge for Nigerian operators that banks should seize by supporting them with financing.
“Our vision is to empower Nigerian airlines to compete effectively and claw back at least 80 percent of international passenger traffic. The traffic is our asset, and with proper funding, our carriers can take their rightful place in global aviation”.
Mr. Keyamo reaffirmed the government’s commitment to creating a fair operating environment, stressing that empowering local airlines is central to ensuring that aviation contributes meaningfully to Nigeria’s economic growth.
Reporting By Nosa Aituamen