“Controversial” Nigeria Air Tops Activities in Aviation Sector in 2023

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By Nosa Aituamen

The Nigerian aviation sector is actively pursuing a robust five-point agenda, aiming to transform it into a secure, profitable, and thriving domain.

Over the past year, significant strides have been taken to garner widespread support from stakeholders in pursuit of this ambitious objective.

National Carrier (Nigeria Air)

The haunting aftermath of the Nigeria Air project’s failure continues to cast a lingering shadow, as revelations and controversies surrounding the ill-fated airline leave many in disbelief and condemnation.

The unveiling of an Ethiopian aircraft painted Nigeria Air, which many say was a sticker on the aircraft, left many Nigerians shocked and embarrassed that, after over 7 years, the government was unable to deliver on its promise.

However, the proposed national carrier was opposed from inception by the Airline Operators of Nigeria (AON) because of the strategic investor (Ethiopian Airlines) whom they alleged would not only enrich themselves with the Nigerian market but also impoverish and kill the local airlines.

That was not all; the government’s agreement to grant tax waivers for 5 years to strategic investors as requested amidst the harsh economic operating environment local carriers were grappling with meant stiff opposition.

The AON even went ahead to institute a legal case against the Federal Government at the Federal High Court Lagos Division, alleging that the entire process lacked transparency.

They agreed that the country needed a national carrier to reciprocate all Bilateral Air Service Agreements (BASAs), but the process adopted was wrong.

Despite the opposition, the former Minister of Aviation, Hadi Sirika and Ethiopia Air Management “unveiled” the airline without obtaining the requisite approvals from regulatory authorities.

However, on assumption of office, the Minister of Aviation and Aerospace Development, Mr Festus Keyamo, prioritised airport infrastructure upgrades, increased private sector involvement, and addressed imbalances in BASAs.

Nigeria entered agreements with African and Middle Eastern countries, facilitating the return of others to enhance air connectivity. Nigerian airlines were granted designations to reciprocate on these routes, with some already commencing operations.

Group Captain John Ojikutu retired, and the President of the National Association of Nigeria Travel Agency, Mrs Susan Akporiaye, deemed this a positive development.

“People are there to compete, and competition brings prices down.”

The Federal Government, committed to safeguarding Nigerian carriers, launched an investigation into the denial of entry for Air Peace passengers into Saudi Arabia, citing alleged errors in entry documentation.

The industry experienced many protests by labour unions as they fought against the proposed concession of the four major international airports and the relocation of aviation agencies. This led to a partial lockdown on air travel in the country.

Their reasons for the protest were that the proposed concession lacked transparency and would lead to job losses and deprive members of their entitlements, despite Federal Government assurances that it would not be the case.

After numerous discussions with the government, an agreement was reached: for the concession to proceed, the government must formally commit in writing to meet the union’s demands and ensure that their members receive their rightful entitlements.

New Airlines/Airports

Despite these setbacks, the industry’s resilience prevailed, with airlines welcoming new aircraft to meet the rising number of passengers.

Two new airlines commenced operations during the period, opening up new routes to cater to numerous passengers on those routes. The growth of airlines, the number of passengers, and cargo exports apparently propelled some state governments to embark on building airports in their states.

For instance, Anambra and Ebonyi airports were opened now fully operational, while others, like in Ogun, Ekiti, Nasarawa states, are almost in their completion stages. This aims to bring about development in the states, encourage farmers to produce more for exports, which will earn foreign exchange, and create more job opportunities.

Trapped Funds

Challenges persisted in the relationship between Nigeria and foreign airlines, with trapped funds remaining unrepatriated due to a scarcity of foreign exchange.

Presidents of the Aviation Safety Roundtable Initiative, Air Commodore Ademola Onitiju retired, and Dr Gbenga Olowo expressed concern, emphasising the importance of honouring agreements.

“We advocated a preferential exchange rate for Nigeria owes $850 million as at May, the highest aviation debts worldwide.”

According to the International Air Transport Association (IATA), Nigeria has the highest amount of airlines’ blocked funds at $792 million, followed by Egypt ($348 million), Algeria ($199 million), the 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,” Kamil said.

Airline Incidents

As the industry sought stability, it faced obstacles like fuel contamination in Max Air aircraft engines, runway incidents involving different airlines, and flight plan errors resulting in aircraft landing in unintended locations.

Notable among them were Cally Air aircraft operated by Aero Contractors at Abuja airport, Flint Aero Services Limited at Ibadan airport, Valuejet in Port Harcourt airport, and United Nigeria aircraft error flight to Asaba airport instead of Abuja airport.

The National Assembly Committees on Aviation raised concerns about these issues, with the Senate Committee chair, Senator Abdulfatai Buhari, pledging unwavering support to ensure safety.

“Not only on the oversight function or your budget, the enabling environment of the law that would help you to achieve to take Nigeria where we opt to be”.

ICAO USOAP(Audit)

Another issue that generated reactions, especially from stakeholders, was Nigeria’s score of 70.2% in the International Civil Aviation Organization (ICAO), Universal Safety Oversight Audit Programme (USOAP).

Many industry watchers say 70.2% was not a pass mark compared to the previous score of above 90% before the recent audit. They also disagreed that no country fails but is given corrective action plans to implement within a specific period.

The former Director General, Civil Aviation, Captain Musa Nuhu said ”In ICAO, there is no pass or fail. There is a target; if you don’t get the target, ICAO will send you a report with the protocol questions. And you use that; they give you three months to develop an action plan, close some of those gaps, and send it back to them. There are a couple of areas we didn’t do very well in Nigeria, and one of the areas is the certification of airports.”

To address concerns and chart a course forward, Mr Festus Keyamo convened stakeholders in Lagos to discuss challenges, where issues such as overlapping duties of aviation agencies, underhand dealings, illegal taxes, charges, and infrastructure deficits were raised.

Aviation Budget

To kick-start the industry’s development in 2024, the aviation minister proposed a budget of N36 billion plus an extra N81 billion for the Nnamdi Azikiwe International Airport, Abuja second runway completion.

The Ministry of Aviation, in collaboration with the Minister of the Federal Capital Territory, together paved the way for the runway as the Federal Government paid JIWA, the host community, compensation to the tune of N825.8 million.

There are optimistic signs that the industry can navigate potential turbulence, as underscored by Minister of Aviation Mr Festus Keyamo, and this can only be possible if the government and stakeholders collaborate to build a robust Nigerian aviation sector.

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