Despite multiple charges and rising operational costs, Nigeria’s aviation industry recorded over 100 per cent success in terms of aircraft fleet in the last eight years.
In 2015, the Nigerian Civil Aviation Authority (NCAA) had 175 aircraft in its register, a figure that rose to 358 this year.
Also, the number of airports in the country has risen from 27 in 2015 to 40 this year.
NCAA Director-General, Captain Musa Nuhu gave the figures at the ongoing Federal Airports Authority of Nigeria (FAAN) National Aviation Conference (FNAC) in Abuja yesterday.
Nuhu added that airstrips across the country moved from 77 to 92 while heliports increased from 221 in 2015 to 370 this year.
He told participants at the conference with the theme: ‘Sustainability of the Aviation Industry In Nigeria: The Regulator’s Perspectives,” that the number of air transport licences is now 73 as against 34 in 2015
Nuhu also said that commercial air transport certificates, which were 196 in 2015, have increased to 320.
Besides, he explained that the number of Air Operator Certificates (AOCs) to airlines rose by 100 per cent within the period from only 16 to 32 at present.
The NCAA boss, who noted that the Aviation sector was prior to COVID-19, the nation’s second fastest growing industry, assured that it would continue to play a significant role in the socio-economic development of the country.
He, however, regretted that the sector was faced with numerous challenges that had impacted sustainability and profitability, stressing that many of the challenges were not under the Nigeria Civil Aviation Authority’s (NCAA) purview.
But, he promised that through its regulatory framework, NCAA would create an enabling environment for airlines and other operators to thrive.
He listed some of the challenges as the high cost of funds, debt burden, high Jet A1 cost and scarcity. of FOREX.
Nuhu said: “Air transport business is a relatively low yield venture that requires huge capital outlay. A difficult venture to implement with the prevalent macroeconomic environment in the country like double-digit interest rates, currency devaluation, inflationary pressure and others.
“Several domestic operators are languishing under the burden of high levels of indebtedness. These debts are owed to support service providers, both public and private. The NCAA is not spared of these debts.
“Forex is a significant cost component of transactions in the aviation sector. Acquisition of equipment, spare parts, maintenance, personnel training, insurance and others. Lack of access to adequate forex at official rates compels service providers to resort to secondary markets at exorbitant rates.”
“Jet A1 accounts for about 40 per cent of the cost of airline operations in Nigeria due to high prices. The cost of Jet A1 has tripled over the last 12 months, eroding the thin profit margins of airlines.”
FAAN Managing Director, Rabiu Yadudu said that it was necessary to sustain development in the industry.
He recalled that last week, FAAN inaugurated an aerotropolis project at the Akure Airport which used to host the biggest aerodrome in the country until recently when Abuja Airport expanded to 11, 000 hectares.
Yadudu said the embrace of the Single African Air Transport Market (SAATM) by Nigeria has further enhanced the aviation sector’s contribution to the Gross Domestic Product (GDP) to $128 million.
He added that no fewer than 17,400 jobs had been created in Nigeria through SAATM.
SAATM is a flagship project of the African Union 2063.