The Nigerian aviation industry has been grappling with significant challenges in recent years, including a substantial number of foreign flights entering the country and generating revenue for their countries of origin while Nigerian carriers struggle to compete. This has resulted in a significant capital flight, with billions of dollars leaving the country annually.

According to the Nigerian Civil Aviation Authority (NCAA), over 10,000 foreign flights enter Nigeria annually, generating billions of dollars in revenue for foreign airlines.

The revenue disparity between foreign airlines and Nigerian carriers is substantial, with estimates suggesting that foreign airlines earn over N500 billion (approximately $1.3 billion) annually from the Nigerian market, while Nigerian carriers generate significantly less revenue, around N100 billion (approximately $260 million) annually from international operations.

This disparity highlights the need for Nigeria to take steps to shore up its potentials and compete favorably in the global aviation market.

The Federal Government has been working to address the operational challenges faced by Nigerian carriers through various initiatives. One of the key efforts is the development of aviation infrastructure, including the modernisation of airports and air traffic control systems.

For instance, the administration has invested in the rehabilitation and expansion of several airports across the country, including the Murtala Muhammed International Airport in Lagos and the Nnamdi Azikiwe International Airport in Abuja. These upgrades aim to improve the efficiency and safety of air travel in Nigeria, making it more attractive to passengers and investors.

The government’s efforts also include providing financial support to local airlines, enabling them to acquire new aircraft and improve their operational capacity.

Current administration has also worked with financial institutions to provide loans and guarantees to local airlines, helping them to purchase new aircraft and expand their route networks.

Additionally, the government has been working to promote tourism and business travel to Nigeria, which will increase demand for air travel and generate more revenue for Nigerian carriers.

Aviation Minister, Festus Keyamo, has been assuring Nigerians that the Federal Government is actively addressing all existing challenges in the sector, with a commitment to restoring safety, efficiency, and investor confidence.

Keyamo revealed that part of the reform agenda includes the implementation of Public-Private Partnerships (PPPs) for airport concessioning, enhancement of air navigation services, review of bilateral air service agreements (BASAs), and improving conditions for local carriers to operate viably.

The aviation sector now contributes approximately $1.7 billion to Nigeria’s GDP, with private airlines connecting cities with unprecedented efficiency, and international carriers increasingly regarding Nigeria as a critical market.

Over 16 million passengers traversed Nigeria’s domestic terminals, while international passenger numbers exceeded 3.5 million. These figures highlight the potential for substantial growth in the industry.

Despite the growth of the aviation sector, Nigerian carriers still face significant challenges, including high operational costs, limited access to foreign exchange, and regulatory hurdles. Airport facilities, though improving, have long required upgrades to meet international standards and provide efficient services. The industry’s growth has also been affected by safety concerns, with several tragic air accidents in the past leaving scars on the industry.

As Nigeria inches ahead to catch up with current demands, the aviation industry remains one of the key sectors poised for exponential growth.

With a population exceeding 200 million people and the new surge in airport number across country, the demand for domestic air travel is expected to increase, presenting opportunities for airlines to expand their services and improve connectivity to remote areas. Nigeria’s young, tech-savvy population offers potential for innovation in the industry, such as digital ticketing and other technology-driven solutions.

The government’s commitment to supporting the aviation industry is evident in its efforts to promote local airlines and improve the business environment. The signing of the Cape Town Convention (CTC) Practice Directions is a significant step towards opening up the country’s economy and enhancing the ease of doing business in the industry.

The CTC Practice Directions will enable airlines to access aircraft, reduce airfares, and improve their operational capacity.

With the right policies and investments, Nigeria can create a thriving aviation industry that generates revenue, creates jobs, and promotes economic growth. All government needs to do is to take a proactive approach to developing the industry, and work with stakeholders to create a favorable business environment for Nigerian carriers.

By doing this, Nigeria will reduce capital flight and promote economic development in the country.

The future of the aviation industry in Nigeria looks promising, and with the government’s continued support, the sector is expected to play a significant role in the country’s economic growth and development.

Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (Syndigate.info).