Stakeholders Proffer Ways to Revamp Aviation Sector Ahead of May 29

As Nigeria is set to welcome a new administration on May 29, 2023, stakeholders in the Aviation sector have identified some steps that should be taken to revamp the aviation industry, increase its contribution to the GDP and cut back capital flight, writes Chinedu Eze

So much hope was raised in late 2015 when the newly appointed Minister of State, Aviation, Senator Hadi Sirika, reeled out the plans of the Buhari administration for the aviation sector. The plans he christened, ‘Aviation Road Map’, have not been achieved as many industry stakeholders are miffed that the administration’s achievements are far short of what it promised. They are of the view that the critical programmes in the Aviation Road Map are yet to be actualized, even as the door closes for the Muhammadu Buhari’s administration.

In order to depart from the days of huge promises and little delivery, industry experts have offered ways that the in-coming administration would revamp the industry. They identified key factors that tend to drag the sector backwards, which include huge foreign exchange due to overseas aircraft maintenance, capital flight by airlines because international travel from Nigeria is wholly dominated by foreign airlines, multiple taxes, which leave indigenous airlines and other companies operating in the industry literally stripped of their earning and the outrageous remittances from aviation agencies by the federal government that tend to asphyxiate their economic growth. CONTROVERSIAL PROJECTS

Senior member of Airline Operators of Nigeria (AON) and the President/CEO of Top Brass Aviation Limited, Captain Roland Iyayi said that what the in-coming administration would do immediately it takes over is to review the controversial projects embarked on by the Buhari’s administration, which left the industry in a sorry state. They include the so-called aerotropolis, which prompted the government to demolish airport facilities at the Murtala Muhammed International Airport (MMIA), Lagos, including the headquarters of aviation agencies without alternative offices in Abuja, where the workers of these agencies were forced to relocate. Iyayi rightly observed that such demolition would have forced in-coming government to tailor its programmes in the industry to dovetail with the Buhari’s because there would be no alternative than to do the bidding of its predecessor if the airport facilities were destroyed. But after the demolition of the former headquarters of Accident Investigation Bureau (AIB), now Nigerian Safety Investigation Bureau (NISB), aviation unions went to court and received court order to stop further demolition of offices at the Lagos airport.

The projects that should be reviewed include the national carrier programme, the aerospace university, which many in the industry argue was duplication of efforts because Nigeria has the Nigerian College of Aviation Technology (NCAT), Zaria, internationally rated aviation institution, which still needs uplift and modern teaching facilities. Others that should be reviewed include the establishment of Maintenance, Repair and Overhaul (MRO) facility, which might have taken off on paper but never physically took off; although the paper take off might have gulped some money, airport facilities concession and the establishment of leasing company, which many in the industry were not apprised of the update of the programme. TAXES AND CAPITAL FLIGHT

Iyayi said: “We have to review the policies that have stagnated the growth of the aviation industry and these include the taxes, the charges and the remitting of 40 per cent of the earnings of some aviation agencies to the coffers of the federal government. This has mitigated against growth because while the federal government wanted to boost its revenue it has discouraged investment in the industry and some of these agencies that pay these remittances are not revenue generating agencies. So, these are the key things that should be reviewed in the next three months. Currently, the industry contributes 0.5 per cent to the nation’s GDP, but it is possible to raise this to 2.5 per cent in the next three years if the right actions are taken to revamp the sector.”

He also said that in the long term, government should embark on the policies that will encourage foreign direct investment (FDI), the establishment of MRO through partnership, but not necessarily with the West, but with companies in other parts of the world that can enhance growth of indigenous expertise, pointing out that Garuda of Indonesia could partner with Nigeria on MRO. KLM carry out some of its heavy aircraft checks at Garuda.

“If the right things are done, we can reduce capital flight and grow expertise and we can gain about N5 billion from capital flight in five years,” he said. COMPREHENSIVE REVIEW

Speaking in the same vein, travel expert and organizer of Akwaaba African Travel Market, Ambassador Ikechi Uko, told THISDAY that the Buhari’s administration tried to do a whole lot of things to grow the aviation industry, and advised the incoming government to comprehensively review the projects, pick the ones that are good and the ones that are working and build on them, noting that the Aviation Road Map was good but the review would sieve what was done that was good and what was not good.

“The review will show what are working and what are not working. The new government