Nigeria’s aviation industry, a vital engine for economic development, faces a critical challenge: funding.
Recognizing this obstacle, the Minister of Aviation and Aerospace Development, Festus Keyamo, has taken decisive action.
His focus? Revenue growth and optimization, along with exploring innovative funding solutions.
Keyamo has assembled a team of aviation and economic experts, tasked with charting a path towards a sustainable financial future for the industry.
Their mission: assess the feasibility of an “Aviation and Aerospace Development Bank,” a dedicated institution designed to overcome the unique risks inherent in the sector.
This bank, envisioned as a Public-Private Partnership (PPP), aims to attract low-interest global funds and fuel all-inclusive growth.
The meeting, chaired by the Director of Planning, Research, and Statistics, Mr. M. R. Shehu, saw Mr. Fortune Idu, CEO of F.C.I International, lead the charge for a sector-specific financial system.
Idu highlighted the industry’s isolation from traditional banking channels, emphasizing the need for its own funding apparatus.
Existing banks, according to Idu, are unable to handle the aviation sector’s specific needs, prompting the call for an independent solution.
Professor Ken Ife, a renowned CBN consultant, echoed Idu’s concerns.
He emphasized the urgency of the situation, pointing to the aviation sector’s N10 trillion naira ecosystem and the potential for accessing global funding if properly structured.
Ife also envisioned the bank as a PPP initiative, with the Ministry of Aviation playing a leading role in its establishment and operation.
Intriguingly, Ife proposed a broader vision: a multi-modal financial institution encompassing not just aviation but also other crucial transport sectors.
This model, drawing inspiration from successful institutions like NEXIM, Bank of Industry, and the Infrastructure Bank, could create a robust financial ecosystem for the entire transportation network.
The meeting concluded with a unanimous agreement: a structured financial system for aviation is crucial.
The potential solution? The Aviation and Aerospace Development Bank.
Recognizing the need for collaboration, attendees expressed interest in working with key stakeholders like the Minister of Finance, the Central Bank of Nigeria, the Security and Exchange Commission, and relevant government agencies.
This initiative, if successfully implemented, could become a game-changer for Nigeria’s aviation industry.
By addressing the critical issue of funding, it can fuel sustainable growth, unlock economic potential, and propel the nation towards a brighter future, one soaring flight at a time.
