Minister of Aviation and Aerospace Development, Chief Festus Keyamo has canvassed innovative funding models, including concession, joint ventures, public private partnership (PPP), management contracts and other interventions that will accelerate the growth and development of the aviation sector.
Besides, Keyamo also called for innovative financing models that go beyond waiting for the Federal Government to drive sustainability for the sector.
The minister and other experts including the Acting Director-General of the Nigeria Civil Aviation Authority (NCAA), Capt Chris Najomo, Senate Committee Chairman on Aviation, Abdulfatai Buhari , Dr. Jekwu Ozoemene , of the Alternative Bank and former NCAA Director-General, Dr. Harold Demuren said reliance on internally generated revenues (IGR) is no more sufficient to address the myriad of challenges confronting the sector, affirming that the attraction of private sector funds remained one of the solutions in tackling ageing airport and air navigation facilities.
They spoke at the South West Regional Air Transport Summit (SWRATS) organised by the NCAA in Lagos, yesterday.
Represented by the Managing Director, Federal Airports Authority of Nigeria (FAAN), Mrs Oluwaseun Olubunmi Kuku, the aviation minister said for the sector to improve, there is an urgent need to enhance capacity through strategic partnership of private sector players.
He said there is a need to review the funding models to pave the way for concession, joint ventures and other interventions that will boost private sector investment.
Keyamo called for rethinking of strategies to birth the implementation of a roadmap to drive growth for the industry.
He said :” We will continue to engage with private sector investors which range from airport operating management companies who are looking to drive concessions and other projects. We cannot continue to speak on the need for private sector investment.”
Capt Najomo said the summit with the theme-” Repositioning the Nigerian Aviation Industry for Financial Capacity and Economic Viability: An Inclusive Regulatory Dialogue”, was put together to address service deficiencies and poor passenger experiences stemming from inadequate funding.
He said current efforts by the minister to engage aircraft manufacturers and aircraft leasing companies have engendered more confidence for Nigerian operators.
Represented by the Director, Airspace and Aerodrome standards, Engr. Godwin Balang, the NCAA boss acknowledged that the Nigerian economy is facing significant macroeconomic and developmental challenges, but they are surmountable through implementing innovative approaches.
Najomo said: “No doubt, a sustainable regulatory framework built on collective engagement and strategic collaboration is critical to achieving operational excellence, enhanced productivity, and sector growth without compromising safety standards.
“With the support of this minister, we at NCAA are committed to rebranding, reinventing, and rejuvenating the Nigerian aviation sector for international competitiveness, sustainable growth and development.”
Also speaking, Chairman , Senate Committee on Aviation, Abdulfatai Buhari said the upper legislative chamber is working on a bill that will mandate Nigerian airlines to have between four to five aircraft before they can start operations.
Buhari said the proposed bill is one way to address capacity issues leading to incessant delays and perennial flight cancellations.
Although, the regulatory authority had in July 2023, unveiled its policy stating that from January 2025, the minimum aircraft fleet of any airline providing scheduled such service in Nigeria would be six aircraft, as against the minimum of three aircraft, which has been the policy over the years, Buhari said despite stakeholders’ opposition, such bill is the way to go.
The NCAA policy also insisted that the maximum aircraft that must be airworthy out of that six aircraft should be four. This means that an airline is expected to ground its operations if it has less than four aircraft that are airworthy.
“Nigerian airlines should be professional, Nigerians want to see confidence, they want comfort and want to be assured of safety, if an airline has just two aircraft, it should operate within the confines of its capacity and not overburden itself with multiple routes that can’t be served.
“It is sad to experience delayed flights, we need to do the right thing for the sector to excel and compete favourably with our counterpart. We are working on a bill that will make it mandatory for prospective and existing airlines to have a minimum of four or five aircraft to start operations,” he said.
On his part, Dr. Jekwu Ozoemene , of the Alternative Bank canvassed the establishment of an Aviation Development Fund to cater to the huge funding gaps in the sector covering airport infrastructure and airport navigation facilities.
He canvassed the liberalization of air transport policies, relaxed regulatory restrictions to attract private sector investment into the sector.
In his remarks, Dr. Demuren said the summit could not have come at a better time than now that the sector needs to grow.
