Tag: Aviation ministry

  • News Central, Aviation Ministry partner on strategic projects

    News Central, Aviation Ministry partner on strategic projects

    News Central Television is exploring strategic collaborations with the Nigerian Ministry of Aviation and Aerospace Development following a courtesy visit by the station’s Director of Commercial and Communications, Mrs. Rosemary Egabor-Afolahan, to the Minister, Festus Keyamo (SAN), in his Abuja office.

    The meeting, which was held on Thursday, focused on key areas of potential partnership. Discussions revolved around collaborations and promoting the aviation sector’s contributions  to national development.

    READ ALSO: 11 things Nigerians should note when applying for a five-year Schengen visa

    Keyamo commended News Central TV for its bold editorial direction, fearless journalism, and its commitment to spotlighting critical issues that shape Nigeria’s progress.

    He noted that media partnerships play a vital role in enhancing transparency, informing the public, and fostering stakeholder engagement in aviation reforms.

    The courtesy visit signals the beginning of a possible working relationship aimed at deepening public awareness around aviation development while projecting positive narratives around Nigeria’s infrastructure growth and regional competitiveness.

  • Aviation ministry, ICRC partner on infrastructure

    Aviation ministry, ICRC partner on infrastructure

    The Ministry of Aviation and Aerospace Development has stated its readiness to partner with the Infrastructure Concession Regulatory Commission (ICRC).

     The Minister of Aviation and Aerospace Development, Festus Keyamo made this known yesterday  at the Ministry’s headquarters in Abuja while receiving the management of ICRC.

    The Minister while stating that Public Private Partnership (PPP) is the best alternative for Nigeria’s infrastructure to development, promised to set up a task force to drive the collaboration with a fixed time-line to ensure quick delivery.

    A statement by the ministry’s spokesman, Odutayo Oluseyi, explained that upon assumption of office as Minister, he met lots of litigations, which he has ameliorated and urged ICRC to follow all legal processes in their quest for Public Private Partnership (PPA).

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    He also commended the ICRC for the initiative and reiterated the Aviation Ministry’s commitment to deliver President Bola Tinubu’s Renewed Hope Agenda.

    The Director-General of ICRC, Dr. Jobson Ewalefoh said the essence of the meeting was to solicit the Ministry to collaborate with ICRC in terms of infrastructure development.

    He said: “We considered the Aviation Ministry as a pivotal Ministry for driving the Renewed Hope Agenda of Mr President, your ministry is key in driving the economy of the country, and we have decided to come to you because of your achievements.”

    He revealed that the Commission has cleared all administrative bottlenecks and promised to get it right going forward.

    He also said there was every need to embrace PPP since the country is faced with infrastructure decay.

    “With the right Infrastructure in place, we will attract many investors into Nigeria. This is the time to improve the infrastructure in the aviation sector, and we commend Mr President for his commitment so far,” he said.

  • FCTA, Aviation ministry partner on airport, railway passenger convenience

    The FCT administration has concluded arrangements to ensure that air and railway passengers enjoy facilities at the terminals.

    The FCT Minister Malam Muhammad Bello and his counterpart, the Minister of State, Aviation, Engr. Hadi Sirika made this disclosure while addressing the media after a joint inspection of the facilities today, Thursday, 08 March 2018. The FCT Minister used the occasion to conduct his aviation counterpart round the facilities.

    On his part, the Minister of State Aviation said, his Minister will work to ensure a temporary access for passengers arriving the airport or departing to the city upon arrival. This he said has become necessary in view of the need to meet up with the target required for the commencement of rail operation in a few weeks times. This, according to him, will resolve likely human and vehicular traffics in the airport.

    According to him, the temporary access will give time for officials of Federal Airport Authority of Nigeria (FAAN), and the FCT Administration to work together to harmonise issues affecting the formal concourse that is designed to link up the airport and railway terminals.

    Engr. Hadi Sirika commended the FCT Administration for its dedication to completion of the facility saying the railway would greatly enhance the outlook of the city and give a modern transport facility to its residents. He underscored the immense benefits that the light rails will provide to both the airport passengers and residents.

    Also speaking at the occasion, Malam Muhammad Musa Bello expressed delight with the seriousness with which the Aviation Ministry is taking up the aspect of providing a concourse between the railway and the airport.  He added that the entire project has been in fulfillment of the commitment of the FCT Administration to completing critical ongoing infrastructure projects.

  • Professionals seek scrapping of Aviation Ministry

    Professionals seek scrapping of Aviation Ministry

    THE Nigerian Aviation Professionals Association (NAPA) has  called on President Muhammadu Buhari to overhaul the  sector to enable it contribute meaningfully to the Gross Domestic Product (GDP).

    Part of the overhaul of the sector,  the group said, should be by restructuring aviation agencies to make them more efficient and result-oriented.

    The group called for the scrapping of the Ministry of Aviation which it is allegedly usurping the functions of the agencies.

    It said as long as the Ministry of Aviation exists, the Nigerian Civil Aviation Authority (NCAA) would not be able to carry out its oversight duties because of  interference by ministry officials.

    NAPA General Secretary Comrade Abdulrasak Siedu said agencies under the ministry were not given a free hand to carry out their statutory duties, stating that the  Minister of State for Aviation , Hadi Sirika, has not hit the ground running as an industry expert.

    He said the minister should be short in words and long in action, if he wants to fix the problems of the sector.

    The NAPA scribe told The Nation that recent comments by Sirika on how to restructure the industry has given room for manipulation by officials of some agencies to thwart efforts by the government to right perceived wrongs.

    Siedu also called for more training for aviation security personnel attached to the Federal Airports Authority of Nigeria (FAAN).

    He said without adequate training FAAN security officials would not be able to discharge their duties effectively.

    He canvassed the recruitment of professionals into technical areas in the airport authority, which he listed to include: engineering, operations, fire and rescue services as well as security.

    Others, he said, should include commercial and finance departments.

    He said the structure of the authority appears lopsided in favour of support services, as against the technical areas.

    This is even as he said the government should regulate the way people without requisite experience were brought into the authority to jeopardise career progression for workers who have been on ground.

    He said there was need to revisit the directorate structure of three aviation agencies: FAAN, NCAA, Nigerian Airspace Management Agency (NAMA), to avoid duplication of functions.

    He condemned in-fighting among senior cadre officials in NAMA, saying such could be a huge distraction for the sensitive agency. He said: “The problem of the aviation sector is that professionals are not recognised . This is the heart of the problem.

    “If the industry will make huge success, the government should rework the personnel architecture in all agencies. Without balancing the personnel distribution in favour of technical personnel, optimum utilisation of workers in the agencies will not be achieved. It is for this reason that the Nigerian Aviation Professionals Association observes that the Minister of Aviation is not doing his work well.”

    He said Nigeria is not ripe for the airport concession/privatisation programme proposed by government. Instead, he canvassed strengtening of the existing structure in FAAN to boost revenue for government, rather than giving out juicy airport terminals and car parks to alleged cronies of people in power.

    Siedu said previous attempts by government to implement concession of airports brought about significant loss of revenue to the airport authority .

    He said: “The government should not privatise or concession major international airport terminals. Nigeria is not yet ripe for airport concession or privatisations as proposed by the Minister of Aviation. Our rationale for opposing the proposal is because of past experience, which has not yielded any positive results. All that the government needs to do is to empower FAAN, by creating the right policy and operational emvironment to perform. Airport terminals and car parks could best be managed by personnel of the Commercial department of FAAN. If you will recall, some concessionaires some years ago bolted away with government revenue running into billions of Naira in the name of managing airport concession.”

    He said Sirika’s recent pronouncements on the state of the industry does not inspire confidence. Siedu said: “Recent comments by the minister on how to fix the sector has been very disappointing. As an industry player, our expectations of him were very high, and it appears he has dashed it now. This has informed  our verdict that Sirika is not doing his job well. Rather than keeping his strategy to his heart, he let the cat out of the bag, without putting in place an action plan to correct the abnormally in the sector. By doing that, he has compounded the problem of lopsidedness in personnel distribution in the sector.

    “But, the unions will not be deceived to stall any plan by government to restructure the agencies operational structure, which we are convinced amounts to duplication of functions in some agencies. For instance, how is  the directorate administration different from human resources. What about directorate of finance and accounts.”

    If the sector must move forward, he said government should re-introduce the medium term sector strategy framework, implemented between 2006 and 2009.

    He went on: ” Some of the problems identified in the stakeholders forum convoked in 2006 has been addressed. But, the government since 2009, back-tracked on the medium term sector strategic plan. The medium term sector expenditure plan introduced a few years later is not working because, there is need to identify critical industry projects, cost them before going ahead with its expenditure. That is where government got it wrong.”

    As a way forward, he urged the government to, as a matter of priority, review the structure of aviation agencies in line with the legislative act that established them. Doing that, he said, would checkmate proliferation of directorates and reduce overhead costs.

    Siedu said: “There is no need to have Ministry of Aviation. It should be scrapped and  in its place, the NCAA should be fortified to enable it carry out its statutory responsibilities. It is the interference of the Ministry of Aviation, that is hampering the NCAA from discharging its statutory duties.

    “The government should focus on the training and retraining of industry personnel. As a matter of urgency, the Nigerian College of Aviation Technology should have a fire simulation training facility to accommodate more fire and aerodromme rescue personnel for training , instead of sending them to Cameroon.

    “Expenditure for training on technical personnel should be increased. In the same vein, the NCAA must enhance training for aircraft aerodromme inspectors . This should also apply for NAMA for air traffic controllers , and other professionals in the airspace agency.”

    He, however, pointed out that until professionals in NAMA eschew acrimony, the expected growth in the airspace agency may be slow.

  • All eyes  on aviation ministry over  airlines’, others’ dispute with FAAN

    All eyes on aviation ministry over airlines’, others’ dispute with FAAN

    The revenue-generating moves of the Federal Airports Authority of Nigeria (FAAN) have led to  protest and petitions from aviation union members, ground handling firms, airlines and concessionaires,  reports KELVIN OSA OKUNBOR 

    The Federal Airports Authority of Nigeria (FAAN) saw in the levies and taxes ways to diversify its sources of revenues. But for ground handling firms, such as the Nigerian Aviation Handling Company (NAHCO) Plc and Skyways Aviation Handling Company Limited (SAHCOL), the moves are bad.  They have the support of the National Union of Air Transport Employees (NUATE), which has written a petition to the Minister of State, Aviation, Senator Hadi Sirika. All they want is for Sirika to prevail on FAAN to drop the proposed charges.

    NUATE’s acting General Secretary Comrade Olayinka Abioye said FAAN wanted to impose the exorbitant, irregular and multiple taxes without recourse to established rules.

    Abioye listed the charges as :ground  rent per square metre of office space per annum; concession fee, which is five per cent annual gross income; new fees for on duty cards, airside drivers licence / permit , access fee for fuel tankers as well as cost of direction signage / company signboard. FAAN also expects companies operating around the airport to pay N10, 000 per employee per annum.

    Employees  of companies doing business around the stakeholders car park on the MMIA are to pay  N15, 000 per staff per annum for the use of the car park. At the car park opposite SAHCOL headquarters, staff  of ground handling companies, cargo agents and others are to pay a  an average of N300 per entry.

    The union listed other fees, taxes, tarrifs and levies imposed on SAHCOL and NAHCO to include: N150,000 per vehicle Apron Pass .

    FAAN also expects companies in the Lagos airport to pay N149, 021, 723.75. Their counterparts operating in the Abuja Airport are expected to pay N 13,494,060. Firms in Kano Airport are expected to pay N20, 247, 000 and firms operating at the Port Harcourt Airport are to cough out N 22, 042, 396.80.

    For installing screening machines at the SAHCOL Cargo Complex, FAAN expects the payment of N 42, 000 , 000 at four stations. The construction of equipment parking bay for the Lagos Airport attracts a fee of at N 5.5 million and  N3 million for the Ilorin Airport.

    FAAN expects N200, 000, 000 per annum as land charge for the SAHCOL cargo complex. It also expects SAHCOL to pay N 420,000, 000 for the construction of the link road.

    NUATE’s petition reads:’’ There is a seeming industrial crisis looming within our airports between the management of the Federal Airports Authority of Nigeria (FAAN) and the two handling companies comprising of the Nigerian Aviation Handling Company (NAHCO) and the Skyway Aviation Handling Company (SAHCOL) over the latter’s arbitrary, irregular, exorbitant and multiple fees imposed on these companies and its workers without recourse to established rules. It may interest the Minister to note that as partners with all these organizations, it is our duty to intervene in this manner by drawing your attention to this grievous matter, more so with its attendant consequences.

    “Whereas we affirm and have severally advised the Management of the Federal Airports Authority to engage in, and embark on increased internally generated revenue from non-aeronautical and ancillary sources, whereas the Management of FAAN has deployed its attention in this direction, in conformity with its objectives.

    “Whereas these handling companies, being operators of passengers and cargo handling services require  conducive and environmentally friendly airports to fulfill their obligations to its numerous customers, which has continued to add value to FAAN as an Airport Operator.

    “In ensuring that industrial harmony reigns within the system, and bearing in mind that FAAN has not fully respected the rights of its “ business partners” to a round table discussions on its incessant “hike in tariff “ in consonance with international best practices.

    “FAAN has violated  Section ii of ICAO’s Policies on airport charges, where it was specifically stated that ‘consultation with airport users before changes in charging systems or levels of changes are introduced is important’.

    “For FAAN therefore to be seen and appreciated by its business partners such as NAHCO and SAHCOL, it must ensure that consultations takes place before any change in tariffs are imposed and should not be an annual event, done in the most shady manner, lacking in transparency, bearing in mind the consequences of the impact on the users.

    “May we kindly use this medium to highlight the current and various fees, tariffs and levies imposed on the Management of the two companies while painfully, their workers were not left out, as these innocent workers had to pay severally  for accessing their respective offices, from their meager salaries.

    ‘’Minister Sir, from the foregoing, one can therefore imagine the unacceptable financial burden placed on these companies, who are expected to earn profits for its owners, plough some resources back into their operations for rejuvenation, pay salaries and associated overheads.

    “Should the company find it unbearable to continue, the next thing they do is to downsize and as we write this petition, more than four hundred workers had been declared redundant in the last six months, citing heavy costs of operations.

    “As partners in progress with all these bodies, we wish to ensure a level playing field for all, where there would be understanding and good reasons for any increase in charges and concurrence by parties without threat to the jobs of our members and or insolvency of any of the companies, including the Airport Operator (FAAN).

    “We urge your good office, to speedily intervene Sir, to avoid imminent crisis as the workers of these bodies and other concerned concessionaires are groaning under heavy yoke of multiple payments, by inviting them to a meeting where parties could vent their opinions, ideas and suggest possible ways of ameliorating the unfortunate situation, as we also try to avoid any of them getting involved in unethical practices inimical to our safety and security considering the nature of their operations.

    “A stitch in time, they say, saves nine. We have confidence that your good office will do the needful as soon as possible to starve off threats to the polity.”

    FAAN’s General Manager, Public Affairs Mr Yakubu Dati said FAAN is aware of the complaints by aviation workers’ union , airlines, ground handling companies and other concessionaires.

    Dati said: “There is a ministerial committee set up to address charges by aviation agencies. It is expected that those with such complaints approach and exploit this window. As a responsible organisation, FAAN will await the findings of the highly respected committee.”

    The Managing Director of NAHCO, Mr Norbert Bielderman, urged FAAN to engage other stakeholders before it proposed any tariff increase.

    He said: ‘’We  plead with FAAN to review its new tax and tariff regime in the interest of its business partners, clients, tenants, concessionaires etc. FAAN must balance drive for revenue and its resultant negative impact to businesses, passenger or customer who ultimately would pay for this cost of doing business.

    “We can all agree that the sector would be facing huge business challenges and there is the urgent need to all sit together to channel a formidable course of direction that is sustainable to all going forward.

    He listed challenges of doing business in Nigeria to include: Naira depreciation, high exchange rate, high interest rates, high airport taxes, charges, ground rents and concession fees

    “Aviation business like any other business is set up to make profit and to create shareholder value and these negative supervening factors may lead to cost saving methods that may compromise service standards and safety. This is asides the sector’s relevance in relation to GDP.

    “In truth, these are trying times for the sector. We expect that there would have to be sacrifices from all ends to safeguard our industry through mutual respect, understanding, maturity, tact, long term view and professionalism. For NAHCO, we expect appropriate adjustments in sync with current realities.’’

    Former Managing Director of SAHCOl, Mr Olu Owolabi, said FAAN should consider the current economic challenges before rolling out exorbitant charges on operators struggling to keep their business afloat.

    He said: ‘’The Federal Airports Authority of Nigeria (FAAN) relies on us to provide these services to the airlines; yet, the charges they ask us to pay are outrageous. So, we are in a fix. FAAN is on our neck with heavy bills.

    ‘’How is government encouraging us? Is it by giving us high tariffs that will not allow us to function? And the sad part of it is that the moment you raise a little penny to the cost of service to these airlines they start kicking.

    ‘’We really need the help of the federal government and then we need succour from FAAN by not giving us charges that are not even acceptable in the world.

    ‘’The former Minister of Aviation set up some committees to look into the tariff but the report of the committees never saw the light of the day. So this sort of thing needs to be addressed.

    ‘’And we have been emphasizing this issue several times. The painful aspect of it is that even this equipment that we have been talking about doesn’t even leave the tarmac, that we pay heavy money on it, can you believe that FAAN still wants us to pay tax on it per year and at the same time they are getting five per cent on the total revenue we made in a year. That is not even double taxation it is triple taxation.

    ‘’I have pointed it out several times and we are still on it, it has not been rectified. There is no way the equipment I am using to make the money, you want to tax me on it and at the same time you want to collect the total revenue whether gain or loss you still collect your five per cent. Am I just working for FAAN? What of the other shareholders? Those investors are running away because there is no way you could make money in such environment.”

    For the Airport Operators of Nigeria (AON), some airport charges must be scrapped to reduce operating costs. Its chairman, Captain Nogie Meggison, said: “The multiple taxes, levies and airport charges have ripple effects on airline business .They have their collateral effect on the operations of airlines.  The airport charges, taxes, navigation fees, and other levies introduced by government are affecting the business.

    “We are paying Customs duties and paying VAT but foreign airlines  that operate into Nigeria don’t pay these taxes. There are also multiple taxation and other levies. We are not asking for rebate or intervention fund but to review the levies and the charges. They charge the airlines landing and parking, navigational charges and terminal charges. There are charges levied for which services are not provided.”

    For now, it appears all have to wait for the committee saddled with the responsibility of resolving the impasse in the sector.

  • Union faults aviation ministry merger

    Union faults aviation ministry merger

    The National Union of Air Transport Employees (NUATE) on Wednesday faulted the scrapping of the Ministry of Aviation by the Federal Government.

    The Assistant General-Secretary of NUATE, Mr. Olayinka Abioye, made the disclosure in an interview with the News Agency of Nigeria (NAN) in Lagos.

    The Federal Government had on Tuesday merged the ministry with the ministry of transport as part of the restructuring of the public service.

    Abioye argued that the merger did not make economic sense and might cost the nation a lot of money in future.

    “Our position has always been that it doesn’t make economic sense for these ministries to be merged.

    “Our argument is that it makes no difference because the structure of the ministry of aviation will still remain.

    “The only difference that we see is that there will be one minister and may be a minister of state.’’

    He recalled that on two occasions, the ministries were merged under former President Olusegun Obasanjo but were reversed to the status quo in order not to destroy the sector.

    The unionist said it would have been better to restructure various agencies in the ministry to cut cost and improve efficiency.

    “We will make our position known to government but we are not going to attack government.

    “We believe that we will work together to ensure that the sustainability and turnaround that everybody is wishing for the industry comes to pass,’’ Abioye added

  • Planned scrapping of aviation ministry: Matters arising

    Planned scrapping of aviation ministry: Matters arising

     

    The Federal Government allegedly plans to scrap the Ministry of Aviation and make it a department in the Ministry of Transport.The merger plan has become a subject of heated debate amongst aviation industry experts and stakeholders. KELVIN OSA OKUNBOR reports.Nigeria is among a few countries  that have aviation as a separate ministry. Other countries, such as United States, Britain, Canada, and South Africa have their aviation ministries subsumed under the ministry of transportation. Also, continental and regional economic bodies, including the African Union (AU) and the Economic Community of West African States (ECOWAS) have, over the years, urged member – states to put their aviation sector under the transport ministry. This, the economic bodies argued, would make room for cohesive planning on all modes of transportation.

    They also argued that aviation as a unique industry requires technocrats and seasoned professionals to run, not politicians and civil servants who are not abreast with issues related to negotiation for bilateral air services agreements, airport safety and security and other developments in the sector that requires expertise. In the opinion of such continental bodies, the arrangement allows governments design a blueprint, marshal plan or roadmap for transportation that is inclusive of all modes.

    However, despite the obvious benefits of putting aviation under the ministry of transport, attempts by the Nigerian authorities to heed the counsel, which will ultimately lead to the closing down of the avition ministry and make it a department in the ministry of transport are causing disquiet in the industry. The Nation learnt that opinions are sharply divided over the plan.

     

    Push for merger intensifies

    For Head of Strategy at Zenith Travels Limited, Mr Olumide Ohunayo, scrapping the ministry is long overdue. He argued that unless the ministry is scrapped, the bottlenecks and bureaucracy that constitute stumbling blocks to accelerated growth of the industry would remain. He, therefore, urged the government to toe the line adopted by other countries, which have ministry of transport and not aviation. He said: “We need to scrap the ministry, strengthen the agencies by respecting their respective Acts with little or no interference.”

    Former President of Aviation Roundtable, Captain Dele Ore, also thinks so. Ore described the aviation ministry as one of the major problems of the industry. A former Secretary General of the Aviation Roundtable, a platform of industry stakeholders, Mr Sam Akerele, agreed with Ore on the call for the scrapping of the ministry.

    He said: “Nigeria cannot operate aviation in isolation. The ECOWAS Parliament in 2000 recommended that member – states should not appoint ministers to preside over aviation. The aviation ministry should be scrapped while the Ministry of Transport should supervise the various segments of transportation.”

    Indeed, the planned merger is in line with the decision reached by the ECOWAS Parliament in 2000. ECOWAS recommended that member-states should not appoint ministers to preside over aviation, stating that rather, it recognises a minister of transport to be in charge, with specialists in various segments of transportation, including aviation.

    The agitation is not new. In 2007, aviation was fused with transportation with a junior minister in charge of air transport appointed to oversee its affairs. A source, however, hinted that the model to be adopted in the new arrangement will see a substantive minister oversee the transport ministry but a department for aviation is to be created to be headed by a director general or secretary. Aviation agencies are to be managed by directors as against the current arrangement where managing directors are overseeing their affairs.

    Ore noted:  “What ECOWAS Parliament is proffering is very sound. And if we are leading the organisation in this sub-region, we are supposed to be taking positive steps. Not only did we make moves, we made presentations to the President at that time, Chief Olusegun Obasanjo.” He said the ECOWAS Parliament knew the peculiarity of the sub-region before recommending it. “And I keep saying that we need to look at that, but many selfish Nigerians will want the status quo to remain so that they can have a place to carry their bag to look for contracts,” he stated.

    The argument is in sync with the one canvassed by a civil society representative in the aviation sector, Comrade Abdulrasaq Siedu. He said the scrapping of the ministry of aviation would help the sector move forward. He argued that the ministry, through undue interference and policy inconsistency, has contributed significantly to the slow growth of the aviation sector. He, therefore, said, “The aviation ministry should be scrapped outright to whittle down the interference in the duties of the Nigerian Civil Aviation Authority (NCAA) and allow it to carry out its obligations and oversight functions without political interference from the ministry.”

    He insisted that if government is sincere about reducing the cost of governance, it should scrap the ministry with immediate effect. “We can effectively operate without a standalone ministry. What we get from the ministry is signing of unfavourable Bilateral Air Services Agreement (BASA) that is detrimental to our carriers, impulsive interference in the day-to-day administration of the agencies, and insatiable appetite for spending BASA funds,” he added.

     

    Aviation unions kick

    However, the proposed merger has drawn the ire of many industry players, including aviation unions. Most of them described it as the handiwork of a ‘cabal’ bent on undermining the growth of a sector considered strategic. Already, three aviation unions namely, Air Transport Senior Staff Services Association of Nigeria (ATSSSAN), National Union of Air Transport Employees (NUATE) and the National Association of Aircraft Pilots and Engineers (NAAPE), have urged government not to buckle under pressure by what they described as a cabal in the sector to scrap the ministry of aviation.

    The unions, in an open letter to the President, alleged that the ‘selfish group’ in the aviation industry is trying to foist its ideas on the presidency in a bid to push its agenda.

    The unions advised the president to steer clear of the ‘nefarious cabal’, saying: “The cabal has strong interest in, and is the unseen force behind the re-emergent distractive debate about the merger or de merger of the aviation industry with, or from, the transport ministry.”

    The unions recalled that under the President Olusegun Obasanjo administration, the aviation industry and the transport sector were merged twice, due to ill advice from the same cabal under different pseudo names and was reversed the minute it was discovered that the move was retrogressive.

    “For us, as representatives of the most critical element in the productivity chain (the workers), we have no particular interest in the merger or de-merger argument. We wish not to be involved in the politics of it. Our only concern is the profiteering that adversaries of orderly aviation growth seek to make from it,” the letter read.

    The group further stated that the problem of the aviation industry is corruption and the government’s inability to put the right professionals in the right places. “We wish to state very clearly that we will stand with Mr. President’s final decision on this matter. However, we hasten to equally state that our position and advice to Mr. President remains the same, an aviation ministry with a seasoned professional who has sound managerial experience and integrity and not blemished, with business orientation as an added advantage, will surely take the industry to greater heights,” the letter concluded.

    The unions seem to have allies among personnel of the aviation ministry and its agencies who suspect they could be adversely affected under the proposed arrangement. Their suspicion may not be unfounded considering that part of the consideration for the merger, The Nation learnt,was hinged on plans by government to cut down on administrative costs and position the sector for enhanced productivity and efficiency.

     

    Experts, stakeholders kick

    But ECOWAS Parliament’s position and those of other experts who think that merger is the way to go has not gone down well with some stakeholders. For instance, Chief Executive Officer of Belujane Konzults, Mr. Chris Aligbe; Executive Director, Centre for Aviation Research and Safety, Engr. Sheri Kari, both opposed calls for scrapping of the aviation ministry.

    Aligbe, for instance, described the proposal as ‘a non-starter.’

    As Aligbe said: “One critical question to ask is where the pool of professionals to draw from. I think the ministry of aviation should remain. It should not be scrapped. What government needs to do is to strengthen it with core aviation professionals to enable it function more efficiently on technical issues of policy and safety. My only concern is that the crop of seasoned professionals at the ministry is drying up. Today, the pool of highly trained, experienced and exposed professionals has dried up.”

    He recalled that after the ill-advised liquidation of Nigeria Airways, which provided the pool of aviation manpower, no effort was made again to create a new pool.  “As at now, in spite of the fact that age has caught up with the professionals of yesteryears, they remain the backbone of NCAA whose success is a factor of the input of returnee professionals. From records available, none of the aviation agencies can boast of any record of robust manpower development over the years.  The dearth of professional manpower is real and frightening,” he revealed, asking, “If we now scrap the ministry of aviation, is that not more trouble for the sector?”

    While noting that on a face value, the proposal is in line with what exists in many countries where aviation has advanced remarkably to global standards such as US, UK and other European Union states as well as in smaller countries with smaller populations and little or no strides in the aviation sector, he said the situation in Nigeria is different.

    His words: “We do not have to scrap the aviation ministry because of what other countries have done. Look at India, which has retained aviation as a separate ministry, as an emerging market with vast population and ambitious aviation development programmes, it has found it expedient to maintain a highly functional, purposeful and focused ministry of aviation to drive her programmes.”

    Aligbe said the Indian model is therefore, closer to Nigeria than the US and UK models with decades of stabilised institutions and procedures in the aviation sector. He pointed out that a deeper reflection on Nigeria’s transport sector will reveal a comatose sector that is problematic in every sub-sector.

    “From road transport infrastructure to archaic railway system, to a revenue- losing maritime sub-sector with its poor port infrastructure, processes and poor corporate governance, as well as very weak regulatory agencies, the transport sector is a story of an under-developed nation,” he argued, adding that the result of the merger of transport and aviation under one ministry will be obvious immediate collapse of the two sectors or, at best, a worsening off of each.

    On his part, Kyari said the proposal is totally unacceptable. According to him, Nigeria’s development has not reached that stage yet. “We should have a ministry which supervisor can reach the President and not a Director of Aviation who cannot take a major and urgent decision. We want to increase bureaucracy, the same thing we have been running away from in the management of aviation business,” he said.

    Citing Nigeria Airways, merger of Federal Airports Authority of Nigeria (FAAN) and Federal Civil Aviation Authority (FCAA) concessions, Kyari recalled that previous decisions taken in the past in many areas and championed by many people in the industry had negative effect on the sector.

    “I encourage government to do a good study on the benefits of such a merger before going that way again. This merger was done in 2007 during Mr. Felix Hassan Hyat and it didn’t work,” he said, asking, “Why should we go that way again?” He said there is need to manage the industry for now and see what can be done to grow its contribution to the Gross Domestic Product (GDP) from the current four per cent.

    For aviation expert and Chief Executive of Mulaky Konsult, Majoku Ilaki, the call for scrapping of the ministry of aviation is “wrong and unreasonable.” Ilaki pointed out that forced merger was tried in the past, but did not succeed because it became clear that aviation, on its own, is a big project that needs to stand alone. I strongly disagree with the position because it has been tried before and it never succeeded,” he insisted.

    The aviation expert recalled that aviation and transport ministries were merged sometime ago, but throughout that period, nothing literally happened in the aviation sector because attention was on the transport section. “It has been tried briefly, but it did not work and that was why it was de-merged again. The fact that ECOWAS recommended a merger does not make it final”, he pointed out.

    To further push his ‘no merger position,’ Ilaki raised the following posers: “How many countries are in ECOWAS? What is the population of those countries?  Put all of them together, they don’t even meet the size of our own population. Look at our own circumstances; it is not what is recommended for the Gambia or Ghana, it does not fit into our own system because our population is almost 10 times of these populations.”

    Ulaki therefore, advised that Nigeria should look at the issue carefully rather than implementing the proposal immediately simply because ECOWAS and others say so. As far as he is concerned, the proposal is “an ill wind that will blow nobody any good.”

    As opponents and proponents of the proposed merger push their arguments back and forth, it is not yet clear what the position of the new administration of Buhari is on the issue. It is, however, clear that Buhari’s government considers the aviation sector as one of the priority areas it must focus on for development.

    His thinking, and rightly so, is that aviation is critical to economic development. And as an airline operator, who pleaded not to be named said, there is nothing unusual if he decides to scrap the ministry of aviation and fuse it with the ministry of transportation for enhanced productivity and efficiency.

    Will Buhari call the bluff of aviation unions and do just that and in the process probably risk workers’ rage? Whichever way it goes, the matter promises to be another litmus test of his ‘change’ mantra.

  • Contractors threaten to sue Aviation Ministry over debts

    Contractors threaten to sue Aviation Ministry over debts

    Contractors being owed billions of naira in ongoing airport remodelling projects in the country have threatened to take the Ministry of Aviation to court, the Minister of Aviation, Samuel Ortom has said.

    The minister told House of Representatives Committe on Aviation that since he took over, he had not awarded any fresh contract.

    “We have not awarded any new contract. I think there was only a capital release of N1billion  which was paid. We have not undertaken any new project and we don’t intend to embark on any new project looking at the debt profile.

    “As money comes, we will try to reduce the debt and ensure that the ongoing projects are completed.

    “We are no longer in the news because most of our projects that were going on are at a standstill and you will recall that the budget was just appropriated and so, we are waiting for that release and as soon as we have them, we should be able to mobilise the contractors to continue work especially the projects that are near completion.”

    He assured the committee that the minsitry will work in line with the template given to it to provide necessary information.

    He said:  “Since we came in, we have not been able to get money. Contractors have been on our neck, some of them are still on site and they are willing to continue. As soon as we have money, we are going to prioritise the projects. As I said, there is no way we can raise enough money to pay within this year on all those projects that are going on. Our intention is to prioritise those ones that are near-completion so that they can be completed. The ones that have not started, we want to see how we can review them at the level with us.

    “Nothing can go on except we can pay the contractors and the fund is what we lack. Right now, some people are even threatening to take us to court and we cannot push them to go back to site. For the Kaduna airport, the contractor is demanding for N250 million.”

    It might take the Ministry of Aviation 20 years to repay its N174 billion debt but it is expected to commence the repayment of the loan which was meant for the four terminals with the interest portion of N18.23billion by July, this year.

    The House committee on Aviation then described the ministry’s debt profile as ‘scary’.

    The committee during its oversight visit to the Ministry of Aviation also said the indebtedness was worrisome.

    The committee raised concern on the Chinese loan  of $500,000,000, which was secured with a moratorium of seven years. The counter funding  obtained by the Debt Management Office (DMO) is  worth $100,000,000.

    The Chairman of House Committee on Aviation, Hon. Nkiruka  Onyejeocha, demanded that the ministry submit before the end of five working days, the full document to guide the committe to do on-spot assessment ongoing projects.

    Hon. Onyejeocha said: “We are not here to witch hunt or probe anybody, if you don’t give us correct information, we will give you wrong advise, so give us right information that will move the aviation sector forward.

    “Our oversight function and the committee seeks specific information on the details of every structural change made to project and  the budget implication, details of project under construction from loans, details of all agreements by FAAN (Federal Airports of Nigeria) in the last two years, signed and unsigned, update on the hotel under construction at the Lagos airport, among other things.

    “Also, the committee will like to know whether all contracts were certified and followed due process, whether all contracts are worthy of continuation, if not why? And we will like to have details on all outstanding project components as at today.”

    The committee noted that its oversight function will place attention on outcomes and policies impact on the larger society.

    “It is expected that all information needed will be provided within five working days from the date of this meeting.

    On the debt profile, she said: “It is worrisome that you are presenting a debt profile of N174billion. One will tend to ask, how are you going to get the money and how did you incur this debt?  It is very worrisome in as much as you have said you are going to use certain strategies to repay.

    “The committee is frowning on such debt profile because we know monies have been appropriated for most of the things that you have been doing in aviation. This debt is critical and serious. We need to have details of the project and we will conduct due diligence on those projects and even those ones that you have paid, I don’t think it is right, I am not judging but It is scary to have such debt in the ministry of aviation.”

  • Aviation minister to Fani-Kayode: Bow your head in shame

    Aviation minister to Fani-Kayode: Bow your head in shame

    The Minister of Aviation, Princess Stella Oduah , on Tuesday berated a former Minister of Aviation, Mr. Fani-Kayode, on his utterances on the sector, asking him to bow his head in shame.

    She said the ex-minister’s comments on the aviation sector were capable of misleading the public.

    Oduah spoke at the Civil Air Navigation Services Organization Conference organized in partnership with the Nigeria Airspace Management Agency (NAMA), in Abuja.

    The event was tagged:  “Transforming ATM Performance.”

    Oduah said: “When you see ignorant people in particular, I have sympathy for them. This is because when you speak out of context, when you speak under whatever influence you are under, you speak incorrectly and mislead innocent Nigerians. That is what he has done. He should hide his head in shame.”

    The minister restated her commitment to safety in the aviation sector.

  • ‘Only N19b was released to Aviation Ministry this year’

    ‘Only N19b was released to Aviation Ministry this year’

     

    The Minister of Aviation, Princess Stella Oduah, has said that out only N19 billion was released to the ministry out of the N34 billion appropriated for the ministry this year.

    The minister noted, however, that about 72 per cent of the amount released had been utilised by the ministry.

    Oduah made the announcement in Abuja on Monday after reading the ministry’s 2012 budget performance before the Senate Committee on Aviation.

    She also gave a breakdown of the performance of the ministry and its the parastatal agencies, saying the average performance of the agencies was 63 per cent.

    “The main ministry has accomplished 66 per cent, NIMET, 47 per cent, NCAT 46 per cent, NAMA 46 per cent, FAAN 53 per cent and AIB 47 per cent, bringing the average performance to 63 per cent,” the News Agency of Nigeria quoted the minister as saying in her presentation.

    According to her, the airport modernisation embarked upon by the ministry is at 85 per cent completion.

    In his speech at the occasion, the Chairman, Senate Committee on Aviation, Sen. Hope Uzodinma, said the budget was a veritable tool for economic management of political governance.

    He said it provided the framework for providing goods and services to citizens and it brought hope for the economy’s transformation.