To accelerate the growth of air transport, the Federal Government has to evolve a master plan to address challenges facing the industry. The challenges, experts note, include obsolete and dilapidated airport and air navigation infrastructure; aviation safety and security; dearth of technical manpower and lack of a national airline, KELVIN OSA OKUNBOR reports.
Despite her strategic geographical location and population, Nigeria has failed to optimise the benefits accruable to her aviation value chain.
According to experts, the failure is attributable to the government’s inability to position aviation as a key driver of economic development. The paradigm, they say, could shift if the sector has a strategic plan for the short, medium and long terms.
Such plan should cover policies, airports, safe and sustainable airlines, manpower development, access to low interest finance and infrastructure development.
Experts say the plan would serve as a road map for the government to drive the economy through aviation.
According to statistics from the Ministry of Aviation, the Nigerian air transport market, if properly positioned, could serve a population of 600 million in West and Central Africa.
According to them, if Nigerian aviation is properly positioned, it could capture 10 per cent of the huge population in West and Central Africa, amounting to 60 million passengers within the regions without considering passengers on international transit.
Despite the huge potentials, Nigeria only controls 40 per cent of the population, which experts say could be further harnessed.
Worried over the trend, the government according to the Minister of State, Aviation, Hadi Sirika, will put measures in place to address obstacles to unlocking the potentials of the aviation sector and its attendant contribution to economic development.
In the last one year, Sirika said, efforts have been put in place to design a master plan through input gathering from stakeholders to address sore points in areas of airports and air navigation infrastructure, proposal for concession of four airports in Lagos, Abuja , Port Harcourt and Kano in the first phase and fast tracking a road map for their implementation.
He said interventions have been carried out in specific areas as government’s response to deficiencies identified in some sections of the industry.
Safety/ Security
To achieve accelerated development of the sector, the government, Sirika said, has carried out comprehensive security threat and vulnerability assessment at airports nationwide with a view to design a new security architecture to address recent threats to airport safety and security.
In the last one year, industry experts including Group Captain John Ojikutu ( rtd), has consistently called on the Federal Airports Authority of Nigeria ( FAAN) to urgently adress access control challenges at airports nationwide as a response to recent threats to global aviation.
Commenting, the General Manager, Public Affairs, FAAN, Mr Yakubu Dati said in the last one year the government has embarked on series of measures to improve security at airports.
Dati said: “The present administration is focusing on issues that will rapidly develop the aviation sector within the shortest possible time . This include measures to address global safety and security challenges as they affect Nigerian airports. We have put measures in place at the airports through the National Airport Security Programme to design a collaborative architecture that will address national security threats from terrorism.
Dati said Nigeria is complying with international safety standards and best practices as rolled out by the International Civil Aviation Organisation ( ICAO).
He said the government has commenced a programme for the certification of two airports in Lagos and Abuja in addition to developing a new security strategy partnership with international security organisation to take the shape of the model in the United States.
This, Dati said, is in addition to the procurement of modern security and airport screening equipment.
But, experts say a lot needs to be done in the area of airport perimeter and security fencing to checkmate unlawful and unauthorised access into restricted areas at airports nationwide in addition to recurring cases of stowaways.
Airports/airspace infrastructure
Part of efforts by the government to accelerate the growth of aviation is in fixing obsolete and decaying airports facilities and airspace infrastructure.
Experts say failure to do this will arrest the development of the sector.
Speaking in an interview, Vice President , Africa, International Air Transport Association ( IATA), Mr Raphael Kuuchi, said fixing of decaying and obsolete airport facilities is one of the ways to position aviation as a driver of economic growth.
He said the Nigerian Aviation Sector Master Plan proposed by Sirika will go a long way to drive the growth of aviation .
A few weeks ago, Sirika complained about the state of facilities including the runway at the Abuja Airport, which he said is unacceptable .
Sirika said :” Government has to respond to this challenge by ensuring that there is infrastructural development through airport concession. This will ensure that the facilities, which currently do not meet international standards, are fixed within the shortest possible time. As an intervention, government needs to embark on serious airport infrastructure upgrade and renewal programme to fix existing gaps. “
This challenge, some industry experts said, influenced the building of four international airport terminals in Lagos, Abuja, Port Harcourt and Kano by the Chinese government with the $500 million loan it secured from its export bank.
Concessions
With declining revenues from crude oil receipts, the government’s continued management of major international airports may not achieve the desired efficiency.
It is for this reason that the airports concession model proposed by the government has attracted comments from industry players.
Dati said the model is one of the best proposals by Sirika, which aligns with the position variously canvassed by many experts including the Chief Executive Officer of Belujane Konzults, Mr Chris Aligbe.
Dati said: ” There is no way the aviation sector could be positioned for economic development of all airports are managed by the government and its agencies.
“Concessioning the airports as the minister has proposed in the Aviation Sector Master Plan will attract more investment into the sector in terms of infrastructure financing and efficiency. It will interest us to know that the minister got that proposal on point, because it aligns with what some industry players have asked for.
“The format the airport concession will take will be clearly defined in the master plan, which will establish the template for engagement for concessionaires, the tenure and scope of such agreements, crisis and controversy free that will enable the airports become veritable catalyst for economic development.
“Nigeria would be joining other countries which have adopted this model for infrastructure development.”
National Airline
The drive to position aviation as a significant contributor to economic development, may remain a mirage, until there are conscious and sustained efforts to set up a national airline to enable Nigeria optimise the benefits of aviation as an economic driver.
A sector master plan that does not factor in the template for establishing a national airline may arrest the growth and development of the sector thereby inhibiting its huge potentials.
Though, Sirika assured that government is poised to deliver a national airline, former Director-General of Nigerian Civil Aviation Authority ( NCAA), Dr Harold Demuren said such airline must be set up transparently.
Speaking in an interview, in Abuja last week, Demuren said Nigeria needs a national airline that must have strong technical and financial partners.
He said should carrier should be delivered using corporate governance principles.
In his views, Dati said Sirika is on track on efforts by the government to deliver a strong national airline, which would assist Nigeria to actualise its bilateral and multilateral air services agreement with many countries.
The absence of a national airline has inhibited the growth of Nigeria’s aviation sector. It has increased capital flight. It has not given Nigeria the opportunity to maximise its many bilateral and multi-lateral air services agreement and other advantages accruable from the Open Skies agreement.
As government takes the right decisions to facilitate a sector master plan, putting together a national airline will boost Nigeria’s image and prestige as promoters of the project will explore the choice of appropriate business model which will incorporate corporate governance and management principles.
The minister has assured that the national airline will be publicly owned and listed at a public offering with interests by institutional investors.
The airline will form alliance and joint ventures with other carriers to increase reach and number of routes.
The government will engage a transaction adviser to develop appropriate business model and framework for establishing it using public private concept. Government will provide the required infrastructure to support its expected growth.”
Aircraft Leasing /Aviation Development Bank
As global aviation players continue to clamour for a friendlier business environment, the suffocating conditions of leasing aircraft in Nigeria experts say, should be addressed to enable aviation play its role as an economic driver.
Sequel to this, plans by the government, according to Sirika, to set up a Nigerian Leasing Company has been received with mixed reactions by industry. While Demuren described it as unnecessary, the Managing Director of FAAN, Saleh Dunoma said it is a welcome development.
According to Sirika, the leasing company proposed in the sector master plan will assist to address limited access to capital and the high cost of funds, with interest rate oscillating around 27 per cent.
As an intervention, the minister said it is part of steps by the government to address high debt profile by operators and provide solution to the challenge of inadequate number of aircraft.
Aligning his thoughts with the minister, Dati said the arrangement will assist airlines in near dire straits.
He said: “Such intervention is needed to correct existing challenges in the sector. There could not have been a better time to do this than now, when APC led Government’s intention is to create an Aviation. Development Bank for industry entrepreneurs to get long term funding at reasonable interest rates at single digits. This will support growth and stability in the industry.”
Milestones in the last one year
Despite the challenges in the sector that the proposed master plan will address, significant strides have been recorded in the industry in the last one year.
Sirika said: “The sector under the Buhari administration has recorded huge achievements not limited to the successful outing of Nigeria in the security audit carried by ICAO. Nigeria, also passed the ICAO universal safety oversight audit.
“We have brought services closer to users by establishing and empowering regional offices for the NCAA.
The airspace agency has achieved publication of performance based navigation charts for all airports, in addition to successful implementation of direct routing within Nigerian airspace for shorter distances, fuel efficiency and reduced carbon emission.
“The airspace agency has carried out automation of control tower operations at Kano Airport, as well as installation of bomb containment vessel at airports in Kano and Port Harcourt.
Installation of Solar Air Field Lighting at 10 airports – Akure, Port Harcourt, Sokoto, Yola, Kaduna, Minna, Enugu, Maiduguri, Jos, and Ibadan as well rehabilitation and furnishing of the emergency Operating Centres at Abuja and Lagos Airports.
“Rehabilitation and furnishing of the Airport Rescue and Fire Fighting Services bay at Domestic Terminal of Lagos Airport.”
