At the last count, only four out of 31 airport terminals in Nigeria are viable. The situation was so bad that between 2017 and 2019, the Federal Government spent over N26.1 billion generated from high traffic and viable airport terminals in Lagos and Abuja to mitigate the effects of operational cost deficits at such unviable airports. However, experts have weighed in on the matter, putting forward measures to reverse the trend and breathe life into unviable airport terminals. Aviation Correspondent KELVIN OSA OKUNBOR reports.

These are not the best of times for managers and owners of airport terminals in Nigeria. A combination of low passenger traffic caused by the COVID-19 pandemic and its emerging variants and other factors have forced most of the terminals to run at a loss. At the last count, only four out of 31 airport terminals across the country are said to be viable. They include Murtala Muhammed Airport (MMA), Ikeja, Lagos; Nnamdi Azikiwe International Airport (NAIA), Abuja; Mallam Aminu Kano International Airport (MAKIA), Kano and Port Harcourt International Airport (PHIA), Omagwa, Rivers State.

Sadly, other terminals spread across the country are said to be struggling, unable to generate enough revenues to keep them running efficiently and also justify the huge investments spent in building such facilities. As if this is not bad enough, some state governments namely, Lagos, Ogun, Ebonyi, Anambra, Yobe, Zamfara, Ekiti, Nassarawa, Osun and Abia are  constructing new airports in their domains, without recourse to the viability or otherwise of the facilities.

According to experts, the viability of an airport is determined by the number of passengers and cargo traffic, as well as movement of aircraft flying into and out of such facility. The International Air Transport Association (IATA) put this in perspective when it said that for an airport to be viable and self-sustaining, it must have at least five million passengers  yearly. But as it turned out, only Lagos and Abuja airports can boast of that huge figure.

Global flight tracking website ‘Flightradar 24’ also gave the viability status of some airports in Nigeria. For instance, for flight recordings covering August 19, 2021 and August 25, 2021, Flightradar 24 said Lagos Airport recorded 203 flights; Abuja, 200 flights; Kano, 32, while Port Harcourt had 80 flights in their listing as viable airports.

In the same period, sampled flights recorded in the unviable airports stood at 24 flights for Benin Airport, 45 for Enugu Airport, 58 for Uyo Airport, 20 flights for Calabar Airport, 14 for Kaduna Airport, four flights for Jos Airport, whereas Ilorin Airport had 21. Flights recorded for Ibadan Airport was 14, Yola Airport recorded 23, while Maiduguri Airport recorded 16 in the unviable airports category.

Based on IATA and Flightradar 24’s yardsticks for airport viability, it means that airports in Benin, Calabar, Owerri, Enugu, Jos, Gombe, Dutse, Birnin Kebbi, Uyo, Asaba, Enugu, Maiduguri, Yola, Makurdi, Ibadan, Akure, Ilorin, Katsina, Sokoto, Jalingo, and Kaduna, among others, can hardly pass as viable. And this must be why not a few experts and stakeholders argue that the proliferation of these unviable facilities will not enhance the economic development of their domains let alone Nigeria’s.

The former Managing Director, Federal Airports Authority of Nigeria (FAAN), Mr. Richard Aisebeogun, is one of them. He said despite that Nigeria is strategically positioned with a huge population and other benefits, its airports have not drawn the huge potential expected from the utilisation of such facilities. He, however, blamed poor operational facilities for the unviability of many airports in the country.

Pointing out that unviable airports are those, which consistently record low passenger flights, Aisebiogun affirmed that for an airport to be viable and self-sustaining, it must have at least five million passengers a year. According to him, the five million passenger mark is the parameter set by the International Civil Aviation Organisation (ICAO), the global aviation regulator.

To salvage the situation, the former FAAN boss called for improved service delivery and infrastructural development to trigger multiple operations within the airports.

He listed the promotion of tourism and related activities as steps that could be taken to propel traffic into an airport to make it viable.

“We need to consider the upgrade of airport infrastructure and pursue the hybrid model of public-private-partnership within the sector. We must lobby multilateral institutions like the Africa Development Bank (AfDB) to prioritise funding for aviation sector initiatives in Nigeria.This way, airports could benefit,” Aisebiogun said.

For the Managing Director of Daniel Young Global Investment Limited, Dr. Daniel Young, managers of airports must be creative in designing their operational model to capture more revenues. He added that they should look beyond the traditional sources of revenue, which is flight related and explore what in aviation parlance is described as ‘non – aeronautical sources.’

Young said there was nothing wrong with state governments and other entities building more airports, but those saddled with managing such facilities should be creative to find different ways of generating income. He said if given the opportunity, he would create models that would enable FAAN to earn over $1 billion from its airports yearly.

Young also said FAAN should look inwards on ways to generate revenue. According to him, FAAN has been operating below resource capacity. Citing other climes such as the United States, Young said not all airports were primed to be viable, but that some terminals were created to be feeder airports to provide traffic into bigger airports.

An Aviation Security Consultant, Group Capt. John Ojikutu (rtd), said reviewing the business plans of many terminals to make them viable has never been this compelling. He canvassed the classification of airports into categories in order to put the unviable ones on their toes to upgrade their facilities. He said airports classified as category one, for instance, would attract more charges, thereby increasing their revenue chances for upgrade of facilities and training of technical personnel.

However, for the Chief Executive Officer, Belujane Konzults, Chris Aligbe, concessioning is the way to go. The expert threw his weight behind the Federal Government’s move to concession the airports, noting that this will help in properly positioning them for profitability.

The expert also said  it was expedient for the Federal Government to keep supporting FAAN and other regulatory and service providers with grants, pending the time the airlines will return to pre-coronavirus capacity.

According to him, aviation infrastructure abhors temporary shutdown.

More so, aviation infrastructure, Aligbe said, are ready-made tools in the hands of politicians. He observed that some of the unviable government-owned airports were built by state governments for political aggrandisement. He said: “It was after building them that they found that they did not have resources to run them and quietly pushed them to the Federal Government through the back door.

“That was how they got into the care of FAAN. But we cannot shut them down, especially for political reasons. It is never going to be easy. If you try to do that, the impact will be more on the northern airports than on the south. The airport in the south that has become a ghost of its old self is that of Calabar. It records only one flight a day since Donald Duke left as governor of Cross River State.

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“The Uyo Airport has taken over. Owerri is bubbling. Enugu will pick up because, at a time, it was behind Lagos and Abuja, even ahead of Port Harcourt International Airport.

“But in the north, you will have to shut down Sokoto, Bauchi, Gombe, Minna, and Ilorin maybe, among others.

“In the west, maybe Akure. Hence, it becomes highly political and more dangerous. So, for the length of time that it will take the airlines to bounce back, the agencies and the airports will have to keep running with the government’s support.”

Group Capt. Ojikutu (rtd) agrees with Aligbe on the need to concession the airports. He urged the government to concession the airports, and not the big four alone, to run efficiently and profitably. He advised that the Lagos and Abuja airports should be concessioned in blocks with four or six others.

Ojikutu said: “Lagos could go with Kano and some others in the south, but not Enugu or PHIA. Abuja could go with Enugu, but not with PHIA. PHIA could go with Kaduna and others, but not with any other mentioned. My idea of concession is only for the non-aeronautical. These include the passenger terminal buildings, cargo terminals, aircraft parking areas, car parks and tollgates. FAAN could become a holding company overseeing the concessioned airports on behalf of the government.”

If and when the move to concession the major airports sails through, the Chairman, House of Representatives Committee on Aviation, Nnolim Nnaji, said FAAN should first be unbundled. According to him, it was glaring that Nigeria’s airports were not just underdeveloped, but grossly under-utilised.

The Chairman, NIGAV Centre, Fortune Idu, could not agree less. He said FAAN was overburdened with managing over 20 airports and paying salaries of over 12,000 workers from the revenue generated by Lagos and Abuja airports. He said the way public airports are positioned, they would never be viable.

The Nation learnt that more than 20 airports owned and managed by the Federal Government are unviable and have operated at a loss for three years. Except the trio of Murtala Muhammed International Airport (MMIA), Lagos; Nnamdi Azikiwe International Airport (NAIA), Abuja; and Port Harcourt International Airport (PHIA), Rivers State, none of the other airports had sufficient revenue to cover their cost of operations alone.

Investigations showed that more funding from high-traffic Lagos and Abuja airports’excess revenue to the tune of N26.1 billion had to be used to cushion the operational cost deficits incurred by the unviable airports in 2017, 2018 and 2019, for instance. The Nation cited a fact-sheet of revenue and expenditure of most airports, which showed huge revenue shortfall and deficits across board for 2017, 2018 and 2019.

According to the fact-sheet, the Kaduna International Airport that was upgraded during the 2017 closure of Abuja airport has in the last three years pooled a total of N1.027 billion in generated revenue. Of the sum, N716.7 million was collected. However, the expenditure was in excess of N4.41 billion, leaving a deficit of N3.69 billion.

The Mallam Aminu Kano International Airport, Kano, did not fare better. The airport in 2017, 2018 and 2019 pooled a total of N8.28 billion in generated revenue and collected N7.16 billion. But its expenditure amounted to N9.6 billion, leaving a shortfall of N2.44 billion.

The Katsina Airport managed to make a total of N250.8 million in generated revenue in three years, out of which only N42.1 million was collected. Its cost of operations was put at N1.58 billion, leaving a deficit balance of N1.54 billion.

Similarly, Sokoto Airport had a total of N725.7 million generated revenue, out of which N400.1 million was collected. The cost of operation was in excess of N2.71 billion, which gave a shortage of N2.31 billion.

In the South, Ibadan Airport, in three years, generated a total of N349.2 million in revenue and collected N244.9 million. The expenditure amounted to N1.39 billion with a deficit of N1.14 billion. Ilorin International Airport, which generated a total of N437.1 million revenue in three years and collected N264.2 million. The expenditure was in excess of N2.453 billion, leaving a shortfall of N2.19 billion.

Same for Akure Airport. The facility pooled a total of N175.8 million in generated revenue and collected N168.7 million. But the expenditure was N1.06 billion, leaving a difference of N893.7 million. The Benin Airport in Edo State also ran at a loss. The airport generated a total of N993.2 million in three years and collected N930.1 million. The total cost of operations was N2.02 billion, leaving a shortfall of N1.09 billion.

The Margaret Ekpo International Airport, Calabar, had a total of N540.8 million generated revenue, though collected more at N559.6 million. The expenditure was as much as N2.50 billion, leaving a deficit of N1.94 billion. Similarly, the Sam Mbakwe International Cargo Airport, Owerri, amassed a total of N1.25 billion in generated revenue and collected N1.08 billion. Expenditure was, however, N2.50 billion, with a shortage of N1.42 billion.

Despite the obvious revenue shortfall in the unviable airports, the Managing Director of FAAN, Capt. Rabiu Yadudu, said airports will not be shut because they are critical air transport infrastructure.

His words: “Airports may appear as if they are running at a loss, but its managers need to comply with special protocols to meet the required standards.

“The managers must carry out upgrade and maintenance to ensure that the airport is serviceable at all times and different seasons. There must be urgent compliance with international standards and recommended best practices. The FAAN is subsidising 18 airports that are not viable to keep them operational. It is either we compromise on standards or comply with remittances to keep the terminal running.”

NIGERIA lacks insurance practitioners with the technical knowledge to underwrite aviation policies, Chairman, Boff and Company Insurance Brokers Limited, Babajide Olatunde-Agbeja, has said.

In an interview in Lagos, Agbeja stated that the industry still depends on the international market to get technical assistance to assess aviation risks before placement.

He lamented  that there is no Air Traffic Controller’s Liability (ATCL) insurance policy in the industry.

Given the sensitivity of air traffic controllers liability as they give air traffic advice to aircraft flying millions of lives, it is expedient to have an insurance policy covering such people.

He said there was the need for insurance practitioners to specialise for improved technical knowledge and robust underwriting of aviation policies.

Comparing the situation in the country to developed nations, he drew a sharp contrast.

Agbeja said: “In the more-developed economies, insurance personnel specialise and stay in a department all their working lives, thereby gaining enough experience to underwrite a specific policy type within a few years of working.

Read Also: How to grow air cargo, by experts

“In Nigeria, we are trained to know everything and move from one department to the other.Therefore, it is difficult and highly improbable for one to master the operations of any one department.To date, we depend on the international market to provide us with technical assistance to assess a risk before placement.

“Recently, NAICOM attempted to increase the paid-up capital of insurance and reinsurance companies in Nigeria, but a recent court case temporarily stalled the implementation. With the high level/volume of finance necessary to run an aviation company, it stands to reason that the best friend of aviators should be the insurance industry.

On the ATCL  he said: “At my last check, I was amazed to find out that there is no Air Traffic Controller’s Liability (ATCL) insurance policy in place for the aviation industry in Nigeria.What happens if a traffic controller mistakenly directs two aircraft into each other’s path?

“We’ve had many claims of this nature over time worldwide with a few in Nigeria. An ATCL policy is compulsory for any aviation industry involved in ATC no matter howsmall the volume of traffic is.’’

He canvassed  an ATCL insurance policy to b for the relevant parastatal in the aviation industry.

Agbeja also said  the country in the eyes of the international community is still regarded as a risk because of past events  which led many to still maintain the status quo and kept insurance premiums at a high.

He said: “While it is true that the government has been diverting a lot of resources to the transport sector lately, there was a lot of rot in the system in times past. Many equipment are obsolete and ineffective, leading many to believe that our airspace is unsafe.

“In addition, there have been many aviation accidents/incidents in the past few years, including near misses which fuel the notion of an unsafe airspace. While our aviation personnel are well-trained, the opportunities to operate in a robust manner are few because the airlines are few, with a limited number of aircraft. So many of these personnel are unemployed or underemployed. With continuous employment, experience is gained, and one operates better.”

Nigeria’s geographical location has placed it in a strategic position to derive benefits accruing from operations in the cargo and air freight value chain. But, poor airport infrastructure, multiple and prohibitive taxes, charges and other disincentives is making Nigeria lose an estimated $250 billion yearly from ferrying of agro and allied cargo, writes KELVIN OSA OKUNBOR

The role of air transportation in deepening the diversification of Nigeria came under focus last week when experts and players in the air cargo, groundling handling  and logistic value chain gathered in Lagos to examine steps to be taken by the government and its agencies to stimulate the growth of air cargo.

The players resolved to suggest ways of developing the air cargo and freight value chain came on the heels of the huge revenue, estimated at over $250 billion lost yearly, if Nigeria had positioned itself to tap from the benefits of air cargo at allied activities.

At the Aviation Cargo & Export Conference , tagged: ” CHINET 2021″, organised by African Travel Quarterly, its  organiser  Mr. Ikechi Uko explained that the purpose of the interaction  was not only to identify challenges affecting the growth of air cargo, airlines and airports but also to proffer workable solutions by critical stakeholders to assist the government in coming up with policies that would help to build a safe, profitable and secured industry.

Among the experts who spoke were Chief Executive Officer, ABX World and Chairman, Nigerian Agro Set-up, Captain John Okakpu.

He said air transportation in the face of the COVID-19 pandemic has gained more traction as the preferred and efficient mode of moving high value-to-weight products, fresh produce, emergency deliveries and products.

He said the  volume of high-value and time-sensitive products traversing local and international boundaries by air is increasing geometrically across the globe, consequently creating increased opportunities for trade and economic development, especially in developing countries like Nigeria.

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But, Nigeria, according to him, is not tapping into the huge market from where it could earn over $250 billion yearly because of challenges  in high government taxes, charges and other logistic nightmares at the airport.

Besides, not complying with primary export requirements, he said the major obstacle to Nigerian exporters from having a seamless experience include multiple taxes and multiplication of agencies at the airports.

He said many exporters were running away from the nation’s airports to air freight their goods because of high cost of components.

Captain Okpaku said many exporters ferry their cargoes by road to access Ghanaian airport because of the huge cost of logistics in Nigeria,

He said: “If we must grow the business of cargo and air freight in Nigeria, ground handling companies and aviation agencies are not helping matters . To help the business grow they have to take urgent steps in addressing reduction in fees, taxes and charges.’’

Managing Director, Federal Airports Authority of Nigeria (FAAN), Captain Rabiu Yadudu said reports indicate that cargo volumes were expected to grow by 20 per cent  in the year.

The figure compared to air cargo volume last year, he said,  shows a significant increase even in the face of decline in aviation activities in 2020 occasioned by the  outbreak of  COVID-19 pandemic which adversely affected the  industry globally.

To drive the growth of the  subsector, FAAN, Yadudu said, is improving its service delivery among which is the construction of new passenger and cargo terminals.

He said: “First to be completed is the Port Harcourt Cargo Terminal fully equipped with modern facilities and billed to be inaugurated and put to use in no distant future.

The FAAN chief said the agency has developed and enhanced air cargo business by  designating some strategic airports as cargo airports. They are Lagos, Abuja, Port Harcourt, Kano, Owerri, Calabar, Akure, Ilorin, Jos, Makurdi and Minna. These airports would freight fresh agricultural produce from surrounding local communities to markets within Africa, Asia, Europe, USA and other countries across the world.

” FAAN has taken some strategic steps towards ensuring optimal service delivery at our Cargo Terminals. Access to the Lagos Cargo Terminal is fully automated and  the process of achieving full automation of our other Cargo Terminals is on-going.

“Electronic billing and automation of payment systems: the objective is complete simplification of procedures.

“Allocation of spaces for development of various warehouses.

“Provision of cold rooms by concessionaires (ARAMEX and SAHCO). FAAN recently deployed two cargo scanners to the NAHCO shed.

“The expansion of  some of our cargo aprons at some airports are ongoing, with a few nearing completion,” he said.

He ,  however , listed some challenges affecting air cargo development to include duplicity of functions among government agencies at  airports leading to increased cost. Lack of cargo infrastructure at the domestic terminals leading to loss of revenue.

He continued: “Lack of synergy with ground handlers. Limited number of cargo facilities to handle import, export and transshipment.

“Low patronage by domestic airlines, thereby making the airports underutilised. Lack of specialised warehouses.”

Also, the Director-General, Nigeria Civil Aviation Authority (NCAA),Captain Musa Nuhu, described the challenges of air cargo on the country as varied.

He said there were over 16 charges, for which only five are receipted according to investigations by the authority.

He listed other challenges to include  inadequate enlightenment about opportunities in the air cargo value chain, inefficient packaging for air cargo to meet buyer’s standards and substandard and poorly preserved agricultural produce.

For Nigeria to actualise the desired air cargo industry, experts said there was the need for standardisation of the various elements of the cargo business, ground handlers.

Group Managing Director, Nigerian Aviation Handling Company Plc (NAHCO), Mrs. Adetokunbo Fagbemi, said to  stop cargo  planes from flying empty from Nigeria, all hands must be on deck to address the fundamental issues.

Speaking on the ‘Role of a handling company in cargo business’, she renewed the call for duty waivers on ground support equipment,  lamenting that the ground handlers were the least paid by the airlines.

”Despite our critical role in the air cargo ecosystem, ground handling companies are not being accorded their dues, we are underpaid by airlines and get blamed for  any challenge within our warehouses whether it is due to airlines or government agencies.

“We look to the government for support with our persistent calls for duty waivers just as it applies to airlines, this is yet to be acceded to. I wish to draw attention to the need for standardisation of the various elements of the air cargo business, as this will enable the actualisation of the desired air car.

Also,  Managing Director, Skyway Aviation Handling Company (SAHCO),Mr Basil Agboarumi, who delivered a paper on ‘The process and challenges of warehousing goods for export, spoke of the challenges of epileptic supply of electricity and high operational costs.

Itemising the benefits of export to an economy, he said if the business is supported and encouraged by the government and various agencies, it would , in turn, encourage farming, strengthen  the currency, create employment opportunities and foster relationships among countries.

Mr. Seyi Adewale, Chief Executive Officer, Mainstream Aviation, who spoke on the topic, ‘Growing the air cargo value chain in Nigeria’, said a more veritable way of growing the cargo chain is to have more processing zones in the country, this he said, is slightly different from the Free Trade Zones.

He   lamented that Nigeria could not boast of a good packaging company, adding that product packaging is a vital aspect of export.

Representative of the Central Bank of Nigeria governor, Anthony Ikechukwu, called on cargo operators to carry out research, especially from countries that are successful  in cargo business.

He also emphasised the need for a common clearing house and state-of-the-art technology  in cargo business,

President, Aircraft Owners Association of Nigeria , Dr Alex Nwuba called on the regulatory body to review the mode of airline certification by ensuring that the licensing passenger operations is different from that of cargo operations.

He said if the licensing procedure was reviewed, it would be easier to attract more players into the domestic cargo business.

Chief Executive Officer, CargoLux Nigeria Limited  and President Association of Foreign Airlines Representatives in Nigeria (AFARN), Mr Kingsley Nwokoma said Nigeria would have been one of the major hubs of cargo in Africa, but it is unable to attain the status because of multiple charges.

The Federal Airports Authority of Nigeria (FAAN) has given a timeline of two weeks to airlines to be fully integrated on the RESA Airport Data System platform.

The integration would end the challenges in passenger facilitation which  bedeviled the airports since June, this year.

The  tenure of the contract for passenger processing management system provided by SITA   lapsed since June.The firm withdrew its services after an extension was sought.

FAAN and the Ministry of Aviation have agreed in principle for the Minister to resolve the contract delaying the 18L Runway light at the Murtala Muhammed Airport. Once the documents are completed, they will procure and install the AFL in  six  months

Managing Director of FAAN, Captain Rabiu Hamisu Yadudu made this known  at the weekend after the tour with the Director-General of the Nigeria Civil Aviation Authority (NCAA) Captain Musa Nuhu to the Murtala Muhammed Airport on a fact-finding and troubleshooting  where he appealed to passengers to bear with FAAN on the hitches arising from data problem.

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The FAAN boss, who spoke on the new RESA platform, said the team was on ground and integration was ongoing with KLM/Air France fully integrated while airlines like British Airways and Delta were in the process of integration.

He said: “The DG NCAA wanted to see and inspect; so we decided to do a joint inspection. We went and saw that some airlines were already onboard like KLM/Air France. British Airways, Delta already have their cables.The DG even asked of Delta and he was shown. They are not fully onboard but they have gone far to be fully integrated on the RESA platform.

“The technicians came almost two weeks ago and all the equipment are here and from all  indications within the next two weeks, we will have everyone fully on board because the team is ready and the airlines are ready.”

He explained that the target from the outset for FAAN was to improve the system as it previously had a system that covered only two airports: Lagos and Abuja, but with RESA the system covers five international airports, a national spread.

On facilities and technology to be deployed in the five international airports, Yadudu said: “The previous system we had is CUTE – the Common User Terminal Equipment – but we now went for the upgrade, a new technology – CUPPS – the Common User Passengers Processing System, this was the new technology since 2009 and now 11 years later FAAN and Nigeria are using the CUPPS and in five airports.

“Additionally, the self service Kiosk ,we never had CUSE, Common User Self Service, comes with it now.The Departure Control System, we never had is all now here, baggage reconciliation system is coming here; FIDS (Flight Information Display System) in Lagos but not in Abuja is now all over. So, all the items spelt out in the contract are here, the improved package and improves/software with a much wider coverage for all Nigerians so for us we are very proud of this.”

According to him, the Common User Self-Service Kiosks had been in Nigeria 100 per cent since last year even before RESA came but implementation was delayed because of the pandemic.

He regretted what happened from June, explaining the circumstances that led to that, but added that that would soon be in the past as the new technology provides more for Nigerians

“We regret  the inconveniences that happened along the way, never intended but when you have a partner and one party decided to cause disruption when there is only one or two people in the world that can do it then naturally disruptions are inevitable but it’s not intended and the payment that we made to ensure that they don’t  disrupt are evidences.

“We made payment, US$500,000 so they can come, they said they will they acknowledged and said no we got approval from the minister to pay them again two weeks ago even though we know we have already started fixing the situation, we are an honourable organization, so by the time they say they are ready we already know we have migrated but we are not vindictive.

“The payment we are making is for extended service from October last year to June, their contract expired but they gave an extra month so we are paying for that extension period.

On the 18Left Runway light that has been an ongoing issue for almost a decade and half, Yadudu said a solution was in sight as agreements have been reached in principle and FAAN is waiting for approval so it can procure a new lighting system and install it within  six months.

He said the delay was due to the fact that there is an existing contract that has been protracted for years now and the government cannot approve a new project when there is an existing one on the same facility.

According to Yadudu, it was not negligence or lack of attention because as a government agency, FAAN had to follow due process.

He said that the AFL was an important project and more critical than even the Taxiway Bravo that FAAN has completed 95 per cent  but that for the existing contract, it would have been done first before Taxiway Bravo.

He said :”  For the last two years since I became MD FAAN, our primary targets among them are the airfield lighting on runway 18L lighting and then taxiway Bravo and we thank God now taxiway bravo is 95 per cent done, we just came from the inspection, it has been achieved. 18Left has been delayed because of a current contract that has been for many years and finally, the honorable minister has graciously accepted to resolve that issue that has been protracted and he has agreed to grant us permission or approval to quickly procure a new lighting system.

“You know FAAN is a government agency; we cannot work and procure a new project when there is an existing one on the same facility. So many things you see that are delayed, are not delayed because of negligence or lack of attention, it’s because you have to follow due process.

“After two years taxiway bravo no issues, as you can see now. If not for the issue of an existing contract we would have finished lighting before bravo because it is more critical. Two years we couldn’t resolve the issues so we decided ‘let the ministry resolve it and approve for us to procure the light so we can fix it within 6 months. And within 6 months we will install the lighting and the runway will operate 24 hours, it has all been agreed in principle, we are just waiting for implementation.

“We have in principle the understanding of the ministry and the minister so we are waiting for the documents to come. It’s only when the documents come you can start processing the next stage of the business, we are rest assured now that in principle we have all agreed and understood.

“It is, however, part of government regulations that you cannot procure the same thing twice until you resolve the first one. The ministry has resolved the first one and has taken over, freeing FAAN now with an approval to quickly resolve it because it is a critical requirement. So the key consideration for us here is that if not for the existing contract, we would have finished that before taxiway bravo.

“ If you compare, the lighting is more critical than taxiway bravo but now taxiway Bravo is 95 per cent complete, we just came from there, you will not recognize it from the taxiway that was overridden with grass and a lot of shrubs, and this is brand new. So it’s a clear indication that AFL would have been done if not for the existing contract,” he said.

THE Chief Operating Officer (COO), Tropical Arctic Logistics Limited (TAL), Femi Adeniji, has canvassed an overhaul of the Airworthiness Directorate in the Nigeria Civil Aviation Authority (NCAA) accusing the unit in charge of issuance of Air Operating Certificate (AOC) to airlines of arbitrariness in the discharge of its oversight duties.

He said a staff  member of the regulatory body connived with NHV, a Danish operator, to ensure TAL’s AOC was not renewed.

NHV was a business partner with TAL which used its AOC to import some containers which failed to declare its content to Nigeria Customs Service culminating in its seizure.

Following that development, NHV threatened to report TAL to the NCAA to ensure its AOC was not only denied renewal but that no lessor will lend it aircraft for pulling out of the business relationship.

Adeniji said the unit in the NCAA had frustrated TAL in getting its AOC renewed after all manuals  were submitted and submitted with amendments to the regulator.

He said the action of the NCAA has forced the aviation and logistics services provider to ground its operations in the last 18 months with threat to its over $7 million investment.

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Speaking at a briefing at its headquarters in Lagos, the COO said TAL had reached its limits and decided to suspend its actions in following through with the AOC renewal despite concluding phase three of the renewal process.

Adeniji said what the NCAA is doing toTAL was not peculiar to it but that other operators were being frustrated by the regulator , which refused to speak for fear of being victimised.

He said: “These issues are not limited to us as a company, but most of the operators. We have decided to address the issue in order to help in the cleansing of the NCAA’s departments and their relationship with operators.

“TAL has decided to follow due process no matter how long it takes without compromise. The AOC renewal process in Nigeria does not align with the international practice although it is supposed to be the same International Civil Aviation Organisation procedure.”

TAL, he said, applied for the renewal of its AOC on September 7, last year, 47 days before its expiration; when only 30 days is required to achieve such in line with provisions of the Nigerian Civil Aviation Regulations.

He said: “Indeed there is abundant evidence that all manuals were submitted and some resubmitted with amendments but some of them were lost by the NCAA Airworthiness Department after seven months of submission.

“Surprisingly, the lost manuals were later found. TAL helped to review these manuals using the NCAA checklist as requested by its officials to help avert any delay. TAL then decided to apply for an extension of its AOC in a letter dated December 16, 2020 to avoid total grounding of its operations. ‘’

This again was denied for reasons best known to the authority despite TALS’s possession of a complete post holder management.”

He accused the NCAA of replicating manuals to be used by other operators, saying such practice amounted to sharing an airline’s trade secret with a supposed confidant of the operator’s regulatory authority.

He said:  “The common threat to operators in aviation business is the NCAA certification process. I have never seen where initial certification is the same process as renewal when you already have the company information and any change in the information is effected and updated through amendment process during the course of operation.”

But the NCAA Director-General, Captain Musa Nuhu, said TAL did not meet the safety requirements needed to get an extension or a renewal, insisting that the authority is not partial in carrying out its responsibilities.

He said: “Tell TAL if they have any proof of misconduct, they should come for a discussion instead of making allegations against the authority.

“TAL should go and meet the requirements for getting an AOC rather than making false allegations.”

On his part, Chief Executive Officer of NHV, Mr Steffen Bay, denied having anything to do with TAL’s AOC renewal.

He said: “The whole idea that we could influence an AOC process in Nigeria is preposterous. TAL has no AOC, no aircraft and no business. We had a one year technical partnership agreement which we did not renew, since then they have been trying to cause problems for us.”

The expected growth of the air transport sector in Nigeria for many decades has been arguably stalled  by unfriendly policies, rigid regulations  and poor management decisions by airline owners/managers and others holding the ace in the strategic sector.  Experts, operators and industry players met at at a conference last week in Lagos to fashion ways to return the sector to profitability, KELVIN OSA-OKUNBOR reports.

Efforts to return the global air transport sector to profitability will not deliver the expected result until governments, airport authorities and aeronautical authorities embrace the needed policy, friendly oversight regimes as well as the best management practices, experts have said.

The  experts, including airline owners/managers, lawmakers and chief executives of aviation agencies, gave these prescriptions at the end of a one day conference in Lagos organised by the League of Airports and Aviation Correspondents (LAAC) with the theme: “Nigeria’s aviation industry: Management, policy and regulation.”

Minister of Aviation, Captain Hadi Sirika, who was represented by Commissioner, Accident Investigation Bureau (AIB), Mr. Akin Olateru, said the ministry, in conjunction with the agencies, were working with the National Assembly to review/amend the agencies’ Acts to provide effective management and align with modern technological development in line with international best practices and development in the International Civil Aviation (ICA).

The two legislative houses have held public hearings on the matter and are at the stage of finalisation of their Report. The review includes the Nigerian Civil Aviation Authority Act (NCAA) 2006; Federal Airport Authority of Nigeria Act 2010; Nigeria Airspace Management Agency Act 1999; Nigerian College of Aviation Technology Act, 1964; Nigerian Meteorological Act, 2003; and Nigerian Safety Investigation Bureau Act, 2019.

He stated that to do that successfully,  the agencies and other support services would need financial relief from the Federal Government.

His words: “Without financial relief, I do not see a quick recovery. We need aggressive policy and we need to do much more on implementation that is very aggressive. As you are aware COVID-19 has put the global economy to the test, with air transport being undoubtedly the hardest hit by the pandemic.”

This is coming as statistics from the International Airline Transport Association (IATA) on COVID-19’s economic impact on Nigeria has shown  a revenue loss of $994 million last year.

In terms of employment at risk in Nigeria, it is 125,370 and loss of contribution to the Gross Domestic Product (GDP) is $885 million.

The Federal Government was able to cushion the effect of COVID-19 by providing intervention funds of N5 billion domestic airlines; funds considered paltry to save airlines from their precarious situation.

Chairman of Air Peace, Mr. Allen Onyema, lamented the devastating effects of COVID-19 on airlines and the industry, stating that Nigeria was not immuned from the pandemic.

“A lot has been said about airlines in Nigeria. Lack of good regulations and policies have been blamed for the myriad of problems confronting the sector. Things are evolving. We hope it will be better. Why are airlines failing? Could it be from the airlines themselves and other factors? he asked.

Onyema said many people have blamed airlines collapse because of faulty structures of airlines occasioned by decisions that are injurious to the carriers without knowing it.

“Government‘s policies in the recent past had been better compared to what we had in the past. The government has done well in the area of policy such as customs duty waiver on aircraft spare parts and VAT and others that are favourable to the airlines.

“Recent government policies are better compared to what we had in the past. The government has done well in ensuring policies such as customs duty waiver on aircraft spare parts and VAT. The AON presented the issue of the partial implementation of the Finance Act 2020 which prohibits the payment of duties and VAT on imported aircraft and aircraft spares by the Customs Service to the National Assembly. There was also the presence of a seven per cent surcharge on the assessed duties which was not supposed to be. This caused delays in the clearance of aircraft and aircraft spares leading to grounding of aircraft that would have been flying.

“With the help of the Minister of Aviation, the airlines contacted the Minister of Finance on the challenges and both ministers swung into action. We commend the Federal Government for its unflinching support for the growth of indigenous investments in Nigeria. This was very evident in the manner the government got this challenge addressed immediately within 48hours to the joy of the airlines,” Onyema said.

The Managing Director, Federal Airports Authority of Nigeria (FAAN), Capt. Rabiu Yadudu, also complained of the financial distress the industry was still facing. He said it would take at least 24 months for the industry to recover from the effect of the pandemic.

He said without sufficient financial resources, it would be difficult for the industry to recover. He called for the implementation of policies, saying while the industry was performing well in terms of regulation, implementation has remained a major challenge.

Chairman, Senate Committee on Aviation, Smart Adeyemi and Chairman, House Committee on Aviation, Nnolim Nnaji, who were present at the conference, assured stakeholders that the Nigeria Civil Aviation Regulation (NCAR) Bill before the National Assembly would soon be passed.

Adeyemi said the passage of the Executive Bill would further accelerate growth in the industry. He promised  he would do all within his capacity to move the sector forward. “As soon as we resume from our recess, efforts will be made to ensure that we pass the NCAR bill before us. Aviation is the socio-economic status of any nation. It requires the support of everyone,” Adeyemi said.

Nnaji said the industry requires good policies and the right framework to move it forward. He assured that the House of Representatives would accelerate the passage of the bill before it.

Director-General, NCAA, Captain Musa Nuhu, said the job of the agency is to oversee and regulate the airlines, but that it is the duty of the ministry  to come up with policies which the regulatory agency implements.

He however assured that the agency was working to ensure that stakeholders, including the airlines would smile when its plans had been completed.

He said the NCAA was repositioning towards the effectiveness and efficiency of its statutory function of its safety oversight.

Capt. Nuhu listed some actions taken by the NCAA to include reducing the Authority’s directorate from eight to six for a more responsive and flexible functionality, automation of internal processes through the implementation change management and acquisition of appropriate ICT systems which was ongoing.

He however said that the Authority like any organisation has its own challenges and difficulties which is attracting and retaining adequate numbers of technical personnel critical for effective oversight of the industry. He promised that the CAA would continue to partner all stakeholders, especially the media, for the attainment of industry  potentials for the benefit of people and country.

don’t shy away when the customers complain or give us feedback.

“So, when they give us feedback, we love them, and we draw up plans on how those issues can be resolved. We take everything onboard; the good, the bad. As we move on, we intend to increase our services to our customers. Don’t forget that we are in this business because of our clients. It is very important to showcase them and let them know we care for them.”

On the complaints raised by the clients, Fagbemi explained that some of the challenges were not in the purview of NAHCO but assured that the management would pass such messages to the appropriate authorities.

She expressed the hope that the current year would experience a new turnaround for the industry, stressing that NAHCO has a quarterly investment plan in acquisition of Ground Service Equipment (GSE), which it had been following in recent times.

Also, Prince Saheed Lasisi, Group Executive Director, Commercial and Business Development, NAHCO, said that in a bid to get appropriate feedback from the clients, the Company has created a new desk, ‘Customer Experience,’ which has helped it to improve its services to its clients.

“Based on the survey that we carried out, we discovered our challenges especially in the areas of staff shortage, equipment and others. It is the desk that has helped us to identify the challenges and we now know how to solve them.”

On his part, Mr. Kelechi Amaechi, the Head, Customer Experience, NAHCO, said the company was already improving on its relationship with its clients, irrespective of class and status.

Organisations like Emirates, Qatar Airways, Asky Rwandair, Air France/KLM, Ethiopian Airlines, freight forwarders and others were represented at the dinner.

Many of the clients in attendance lauded NAHCO for its consistency in delivery quality services despite the challenges of forex, Covid-19 pandemic, and others, with an affirmation of continuous patronage.

The  new Assistant Comptroller General(ACG), Nigeria Immigration Service (NIS), Zone A, Oluremi Talabi, has appealed to the Federal Airports  Authority of Nigeria(FAAN) to strengthen the Visa on Arrival (VoA) Section of the Service at the international wing of the Murtala Muhammed Airport (MMA), Lagos.

She made the appeal when she visited the Regional Manager, South West, Mrs Victoria Shin-Aba, as part of her familiarisation of the MMA, Lagos Command of NIS under her zone.

The ACG  informed the Regional Manager that the Comptroller of the Command had told her the immense support he has been receiving from the Regional  Manager.

She commended the  Regional Manager for her support to the Command and that the cordial relationship should further improve.

“I appreciate the Regional Manager, your esteemed office. I also appreciate you for giving us an audience within 24 hours of informing you of our visit  you received us.This further gives credence to what my comptroller has told me about the cordial relation between the two organisations.

The ACG said everything was going on well  but that the Service could only be comfortable as long as FAAN wanted it.

Mrs Talabi told Shin-Aba that despite the seamless operations that the Service had been having at the airport, the NIS needed a space in the yet-to-be inaugurated terminal for the Visa on Arrival section not only to strengthen it, but also to make it more comfortable for those coming to invest in Nigeria,who are investors.

She added that apart from the Ease of Doing Business, which strengthens the economy of Nigeria, the VoA Section must be made easier for use by VoA passengers coming to invest in our country.

Mrs Talabi also requested for a  space in the Holding Centre, where passengers with issues would be attended to.

The Regional Manager said there would not be any issue as it concerns space for Visa on Arrival.

According to Shin -Aba , “We have a very good relationship with all the comptrollers that have been here. We have been working together like a team.

She added that to address the issue, what was done at the Nnamdi Azikiwe Airport (NAA)  would be replicated in Lagos to accommodate NIS’ requests.

Mrs Shin-Aba, however, told the  ACG that allocation had not been done.

Also, the Regional Manager said there was a constraint in the terminal, adding it was either the available space was partitioned or the Service would wait for the new terminal to start to get a conducive place at the Holding Centre.

Earlier, the ACG held a meeting with the Command at the Comptroller’s  office after which he inspected some units under Lagos  Airport Command.

They include: General Duties, E Departure,  ICT Unit and D Departure.

The ACG was guided on the visit by the Comptroller, Lagos Airport Command, Abdullahi Dalhatu, officers and men  under his command.