Nosa Aituamen
The Nigeria Aviation Award (NIGAV AWARD) recently convened industry leaders and stakeholders to not only celebrate achievements but also to critically assess the sector’s performance in 2024 and offer a glimpse into the prospects for 2025.
Dr. Richard Aisuebeogun, Co-Chairman of the 14th NIGAV Award and Ministerial Dinner NIGAV 2024, presented a comprehensive overview, highlighting both the strides made and the significant challenges that persist within Nigeria’s aviation landscape with the theme: Foundation for Accelerated Aviation Growth(FAAG)”.
The International Airport Professional stressed the unique role of the NIGAV ceremony, emphasizing its commitment to providing a valuable industry review alongside its recognition of excellence.
He revealed an ambitious plan, initiated by the award’s founder in collaboration with the Nigeria Civil Aviation Authority (NCAA), to evolve this review into a comprehensive annual industry appraisal, mirroring the structure and impact of the Nigeria Economic Summit and reports from global bodies like IATA and ACI.
This initiative, slated to commence next year, aims to establish an institutional framework for the sector’s development, fostering data-driven planning and growth.
Despite a volatile economic climate in 2024, marked by a soaring cost of living and high airfares, Nigeria’s aviation sector demonstrated resilience and a capacity for growth.
The year witnessed positive developments across several fronts, signaling a foundation for accelerated expansion.
A significant achievement was the restoration of international confidence, largely due to the government’s decisive action in resolving the substantial debt owed to foreign airlines.
This move paved the way for increased international traffic and was highlighted by Air Peace’s inaugural flights to the United Kingdom, a testament to the government’s commitment to balancing Bilateral Air Service Agreements (BASA).
The regulatory environment also saw positive shifts, with the NCAA initiating reviews of critical procedures to enhance technical and economic oversight.
The confirmation of a substantive Director General for the NCAA is expected to bring stability and bolster the authority’s capacity to ensure airworthiness and safety. Furthermore, the NCAA’s intensified focus on consumer protection, addressing issues like high fares and flight disruptions, aims to rebuild passenger trust.
Fleet modernization and route expansion were other notable positives in 2024. Domestic airlines like Air Peace, Ibom Air, and Overland Airways continued their fleet renewal programs with new aircraft acquisitions.
A significant breakthrough was the Federal Government meeting the conditions of the Cape Town Convention, removing Nigeria from the blacklist of aircraft leasing risk countries. This opens doors for more affordable long-term financing for aircraft acquisition.
Simultaneously, airlines actively expanded their domestic and regional networks, with new airports emerging and innovative partnerships between state governments and airlines taking shape to improve connectivity.
The unmanned aviation sector also gained prominence, marked by increased participation in drone activities and the NCAA’s release of regulations for drone operations, signaling the emergence of a new frontier in Nigeria’s aviation landscape.
However, the year was not without its hurdles. Infrastructure development continued to face challenges due to the economic recession and currency devaluation, resulting in the delayed implementation of projects.
The persistent issue of statutory deductions from aviation agencies’ allocations raised concerns about funding. Airlines grappled with the high cost of Jet A1 fuel, forex scarcity for maintenance, and a shortage of skilled manpower.
Passengers continued to bear the brunt of high airfares and faced unacceptable levels of service quality, including flight delays. The year also saw a non-fatal helicopter crash, prompting ongoing safety investigations. Furthermore, a proposed helicopter landing fee by the Nigeria Airspace Management Agency (NAMA) met strong resistance from stakeholders.
Looking ahead to 2025, Dr. Aisuebeogun outlined several key factors expected to shape the industry.
The government’s commitment to facilitating aircraft acquisition and access to international credit will be crucial. The anticipated commencement of airport concessions is expected to attract private sector investment, leading to improved infrastructure and passenger experiences.
Enhanced efficiency in immigration processing through automation and inter-ministerial collaboration is also on the horizon.
Addressing the local aircraft maintenance gap through the establishment and expansion of Maintenance, Repair, and Overhaul (MRO) facilities is another key priority.
The resolution of the Nigeria Air issue and the potential for a national carrier are also anticipated. Nigerian domestic airlines are expected to become more dominant in the West and Central African region, while the air cargo sector is poised for growth due to the rise in e-commerce.
Dr. Aisuebeogun concluded with a set of recommendations aimed at ensuring sustained growth.
He emphasized the need for consistency in policy implementation, aligning the current aviation agenda with previous roadmaps and called for an updated airport master plan and government intervention to stabilize the foreign exchange market and provide the aviation sector with special access to crucial forex.
Negotiations with local refineries to address the availability of Jet A1 fuel were also highlighted. To tackle the challenge of institutional funding, he advocated for the capitalization of Nigeria’s aviation leasing company and the exploration of structured funding instruments like a sector-specific bank.
Despite acknowledging the potential challenges posed by Nigeria’s current economic climate, Dr. Aisuebeogun expressed optimism about the future of the aviation sector, emphasizing its role as a catalyst for economic growth.
He urged the government to provide direct support through tax incentives, waivers, and consistent policies aimed at improving air transportation infrastructure.
The aviation professional reiterated his full support for the proposed comprehensive annual review and outlook, calling for industry-wide collaboration to produce an inclusive and insightful document that will serve as a vital tool for planning and development.