The Federal Government is reworking its template for the engagement of private sector participation in the aviation sector through concession of airport terminal buildings and other infrastructure expected to yield huge revenue into its coffers.
To drive this, the Ministry of Aviation and Aerospace Development and some agencies under its jurisdiction , including the Federal Airports Authority of Nigeria , FAAN, have embarked on a working tour to some developed countries in Europe, US and Middle East to understudy the model applicable in such climes, with a view of replicating such in Nigeria.
Significantly, the government sources familiar with the development hinted are looking at the components of such models that will not lead to loss of jobs for the industry’s workforce.
To drive the agenda, the government the source hinted is considering an intentional tweak of some of its policies that would make allowance for inheriting of assets and liabilities of the concerns earmarked for private sector take over.
Concession of airports, which experts say would create a window for tapping into huge revenue opportunities at airports for flights and other related facilities will assist to optimise existing air transport infrastructure
Confirming the development, Minister of Aviation and Aerospace Development, Mr Festus Keyamo said discussions are being wrapped up in many quarters to birth a template for crisis free concession of airports and other facilities.
Speaking in an interview in Lagos at the weekend, Keyamo said : “ What the governmentcan do is to open up the environment for private businesses to thrive. The government does not need to give money. What type of money do you want to give to the aviation industry? It is so capital-intensive. No amount of money the government gives the industry that can make them survive.
“ It is the kind of policies to attract foreign investors, to attract patronage, to make the environment especially safe and conducive for people to come in with their equipment, their
Keyamo disclosed that the government is preparing to advertise for new concessions but will prioritise transparency and inclusivity, particularly with regard to unions and workers’ job security.
“We are advertising very soon for concessions. However, we want to carry the unions along. This is my major focus in this drive. I don’t want to do it like the previous ones where there were complaints either from within or outside.”
Keyamo assured workers that their jobs are safe, noting that any concession agreement must take their welfare into account.
“One of the first conditions we will give whoever wants to do concessions with us is that you carry out liabilities along, the workers. Make sure their jobs are safe. Then, we can start talking,”
Keyamo said the government is reaching out to global partners to facilitate easy access for acquisition of airplanes for indigenous operators.
He said : “ I am very clear as to our direction in the aviation industry and Mr. President directed that we should go that way. I want to thank Mr. President for giving us all the support. I am sure you see the clear difference in policies. One says no. We cannot do it. So, go and get people from outside to come and dominate our space. I say no. Let us see how those people do it and rather bring that same environment to our own people to achieve what others, who are not anyway, better than us, can achieve,” he stressed.
Keyamo highlighted that the current administration is taking the “hard road” by addressing the root causes of the challenges Nigeria faces in the aviation sector.
He pointed out that he has travelled across the globe to engage with international experts to learn what is required to elevate Nigeria’s aviation industry to the level of nations like Qatar and Ethiopia.
“What we have done is to take the hard road. What is the hard road? We decided to go round the world to say, ‘Look! What do you want us to do to be like Qatar; to be like Addis Ababa? What do you want us to do?’ They gave us conditions,” the minister explained.
According to Keyamo, Nigeria already possesses the fundamental elements needed for success in the aviation industry, such as a strong economy, a large population, and a robust travelling public.
The minister revealed that the Ministry has started addressing the conditions set by international bodies, which had been ignored for over a decade by previous administrations.
“We have the country already. We have the economy. We have the population. We have the travelling public. So, why can’t we be like them? So, they gave us these conditions. We have started to address the conditions one by one. Other people ignored these conditions in the past.
“I saw letters from ten years ago, five years ago that they wrote to Nigeria to say, you are not fulfilling this, and they ignored those letters. I went back to those letters,” he said.
Keyamo further detailed that the government’s recent efforts have earned Nigeria recognition in the global aviation community, particularly after fulfilling the requirements of the Cape Town Convention.
This, he believes, will pave the way for Nigeria to become a preferred destination for lessors and financiers in the global aviation market.
“This is the first step. There are other steps coming. What we did is, we drew from our wealth of professional background. We did the Cape Town Convention. We did the practice direction. They are rating us high,” Keyamo explained.
The minister expressed confidence that the chosen path would lead Nigeria to becoming a key player in the global aviation industry, stating, “To ensure that this country becomes a country that enjoys the patronage of lessors and financiers across the world, that is the path we have taken.”
