Nigeria: Tinubu, Keyamo Record Progress in Aviation Sector Amidst Challenges

Aviation experts say that if lingering concerns undermining the industry are addressed, Nigeria can develop a robust and efficient aviation sector.

In August last year, President Bola Tinubu swore in 45 ministers to oversee the different federal ministries in the country.

Festus Keyamo, a Senior Advocate of Nigeria (SAN), was assigned the portfolio of Nigeria's Minister of Aviation and Aerospace Development.

Mr Keyamo served in the immediate past administration of former President Muhammadu Buhari briefly as minister of state in the Niger Delta ministry before he was moved to the Ministry of Labour and Employment in the same capacity.

Mr Keyamo took the baton from Hadi Sirika, who alongside his brother Ahmad Sirika, daughter Fatima, and her husband are currently being prosecuted for misappropriation of public funds while he was in office.

The new aviation minister came in at a time of many unresolved issues in the sector such as the controversial Nigeria Air project, concessioning of airports, dollar scarcity/repatriation concerns, high cost of aviation fuel and multiple taxation.

Other contentious issues include rising airfares, law enforcement and safety concerns, flight delays and cancellations, encroachment on airport lands, insufficient transportation services, and touting and hawking at airports.

In the previous administration, Mr Sirika published the Aviation Sector Roadmap with the key components being the concession of four airports, the establishment of a national carrier - Nigeria Air - the development of agro-filled/cargo terminals and the establishment of maintenance, repairs and overhaul centres.

While some progress was recorded on the plans captured in the roadmap, the aviation sector under Mr Sirika faced several setbacks which prompted some airlines (domestic and international) to stop or reduce their operations in the country.

Promises

To guarantee the growth, development and safety of the Nigerian aviation sector, Mr Tinubu promised Nigerians, among other things captured in his Renewed Hope manifesto, that his government will focus on improving airport runways and other critical aviation infrastructure.

The president emphasised that the modernisation and expansion of existing airport facilities will also be prioritised and that his government shall improve aircraft maintenance, safety measures and incident reporting requirements regarding domestic airlines while ensuring fairness and transparency in ticket pricing for international and domestic airlines.

This, Mr Tinubu said, would include providing compensation to passengers for significant flight delays or cancellations attributable to the conduct of the airline or its staff.

"We will also enhance runway and airport security through the use of modern surveillance technology. We will continue with the current administration's plans to establish a new national carrier," Mr Tinubu's Renewed Hope manifesto states.

He assured Nigerians that his government will also strengthen the Nigerian Civil Aviation Authority and other aviation regulatory agencies to maintain standards in the industry.

While delivering his first speech when he assumed office as aviation minister, Mr Keyamo said transparency, team spirit and selflessness are key principles that can lead to the actualization of the mandate given to him by the president for the aviation sector.

"I am people-oriented, and my aim is to satisfy people," Mr Keyamo said.

Notable actions/achievements

Less than two weeks into his tenure, Mr Keyamo alongside the Federal Capital Territory Minister, Nyesom Wike, resolved a protracted land dispute that had delayed the commencement of the construction of the Abuja airport's second runway.

Despite an initial deposit made over a year before the commencement of the current administration, Mr Wike said the FCT Administration (FCTA) will pay N825.8 million as compensation to the host Jiwa community and other stakeholders in Abuja.

The decision enabled the project contractors to return to work.

Similarly, amidst heightened concerns among Nigerians over Mr Sirika's poor handling of the Nigeria carrier project, Mr Keyamo in September announced the temporary suspension of all plans for Nigeria Air and airport concessions.

Within a month in office, the minister directed all airlines to vacate the old terminal at the Murtala Muhammed International Airport (MMIA), Lagos, following a tour of the facility. This prompted the Federal Airports Authority of Nigeria (FAAN) to announce the relocation of international flight operations from the airport's old terminal to the new terminal two, making it fully operational.

The minister identified flaws in the design of the facility that had previously rendered the terminal unusable for many international flights.

Additionally, in partnership with the Nigerian Immigration Service, Mr Keyamo supervised the remodelling of the Arrival Hall of Wing E at Lagos International Airport into a brand-new facility through a Public-Private Partnership.In January, Mr Keyamo approved the relocation of FAAN's headquarters from Abuja to Lagos, citing a need to curb waste of public resources and prevent the rot of FAAN's abandoned Lagos building among others. The minister explained that officials of the agency spent about N1 billion in 2023 on Duty Tour Allowance (DTA) and air tickets for travels between Abuja and Lagos.

In February, the minister also ensured the swift repair and reactivation of the Lagos Airport Second Runway (18R), which had been out of service for almost a year.

Amidst funds repatriation difficulties faced by international airlines operating in Nigeria over the past two years, by working closely with the Central Bank of Nigeria, the minister's effort ensured the clearance of the longstanding backlog of trapped funds for foreign airlines.

This resolved an issue that had persisted for years, boosting international airlines' confidence to resume flight operations in the country.

Recently, Emirates Airlines, which suspended operations over a year ago due to difficulties encountered in repatriating trapped funds, announced the resumption of flight services to Nigeria from 1 October.

Meanwhile, Mr Keyamo also recently obtained approval from the Federal Executive Council (FEC) to withdraw the ticket payment exemption granted to highly placed Nigerians at the nation's airports.

"The ministry has been losing huge revenue that ordinarily should not be. With the new system, everybody coming into the nation's airports must pay the toll gate fees. Already the president and the vice president have agreed to be part of those that would pay," Mr Keyamo said.

Existing concerns

While several proactive measures aimed at revamping Nigeria's aviation industry have been implemented under the watch of Mr Keyamo within his first year in office, several challenges remain.

Some of the existing challenges bedevilling the Nigerian aviation industry include operational costs, debts, poor access to foreign exchange, surging airfares and high cost of aviation fuel among others

The rising cost of aviation fuel, forex scarcity and rising exchange rates have worsened performance in the sector in recent times. The ripple effect is evident in the suspension of operations by some airlines, and the increase in ticket fares, among others.

A review of air ticket prices across major domestic airline companies such as Air Peace, Ibom Air, Max Air, Rano and Value Jet shows that the minimum prices for air tickets have risen significantly in recent months.

Also, some airlines' operations have been grounded following high cost of operations and safety concerns.

In April, the Nigeria Civil Aviation Authority (NCAA), suspended the Air Operator Certificate (AOC) of Dana Airlines over safety concerns. This was announced less than 48 hours after an aircraft (MD82 with registration marks 5SN-BKI) belonging to Dana Air experienced a runway incursion upon landing at the domestic wing of the Murtala Muhammed International Airport in Lagos on a flight from Abuja. Fortunately, no fatalities were reported at the time.Based on this, experts say if the challenges are addressed, Nigeria can develop a robust and efficient aviation sector that supports economic growth and development.

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