As the curtain closes on 2024, the Nigerian aviation industry finds itself at a critical juncture, marked by both notable achievements and lingering hurdles. As we reflect on the past year, it becomes clear that the sector has made significant strides under the current administration, yet still faces numerous challenges that must be addressed to ensure sustainable growth and development.
Clearing the Forex Bottleneck
One of the sector’s major achievements has been resolving the foreign exchange (forex) crisis, which had created a backlog of funds for foreign airlines.
This issue had escalated to the point where Nigeria was on the brink of reputational damage. However, the government’s swift action to clear these backlogs has restored confidence in the market and ensured that foreign airlines continue to operate in the country without fear of financial entanglement.
Cape Town Convention: A Breakthrough Moment
A pivotal moment for the industry was the resolution of issues surrounding the Cape Town Convention, an international treaty safeguarding aircraft leasing and financing.
For years, the violation of this treaty had stifled growth in the airline sub-sector. Aviation and Aerospace Development Minister, Festus Keyamo’s ability to address this longstanding challenge has been hailed as a masterstroke.
“Many of us in the industry didn’t believe it could be resolved so quickly,” Chris Aligbe, an aviation consultant remarked, commending the minister’s determination and focus.
FAAN: A Model of Leadership and Decentralization
The Federal Airports Authority of Nigeria (FAAN) has emerged as a shining star under the leadership of its Managing Director, Mrs Olubunmi Kuku.
Aligbe described the MD as a “poster CEO,” whose innovative approach to airport management has set new benchmarks for the industry.
Key among her achievements is the decentralization of power, allowing airport managers to make immediate decisions without waiting for lengthy bureaucratic approvals.
This has been instrumental in improving operational efficiency and enhancing passenger experience. Notably, the Abuja and Port Harcourt airports received international awards for security improvements, reflecting FAAN’s commitment to global standards.
Addressing ICAO Audit Deficiencies
FAAN has also made significant progress in addressing gaps identified in the International Civil Aviation Organization (ICAO) audit, particularly in aerodrome management.
Through concerted efforts, the agency has closed 160 gaps, leading to the recertification of major airports like Lagos and Abuja. This achievement underscores the MD’s focus on technical excellence and collaboration with industry professionals.
NCAA: Strengthening Consumer Protection
The Nigeria Civil Aviation Authority (NCAA) has maintained its strong record in ensuring the airworthiness and safety of aircraft. However, consumer protection has become a focal point in recent months. The NCAA’s Consumer Protection Directorate has ramped up efforts to address passenger complaints, including high airfares, flight delays, and cancellations.
Despite these efforts, enforcement remains a challenge, with staff facing threats from airlines resistant to regulation. The NCAA has pledged to impose sanctions on airlines that fail to comply with refund policies or engage in unfair practices, signaling a tougher stance moving forward.
High Airfares: A Source of Frustration
The soaring cost of domestic flights has been a major concern for passengers. Aligbe highlighted cases where a one-way ticket to Asaba costs as much as ₦300,000, far exceeding fares for longer routes. While airlines cite high operating costs driven by forex constraints, passengers have called for more transparency and fairness in pricing.
The aviation consultant urged the government to support airlines by providing access to forex for leasing, maintenance, and spare parts.
He also stressed the importance of transitioning from expensive wet leases to cost-effective dry leases, a shift that could reduce operational costs and, ultimately, ticket prices.
For the President, Association of Foreign Airlines and Representative in Nigeria, AFARN, Dr. Kingsley Nwokoma the resumption of Emirates Airlines’ operations in Nigeria was another high point. After months of negotiation, the federal government successfully facilitated the airline’s return, showcasing its dedication to enhancing international connectivity.
Additionally, the relocation of the Federal Airports Authority of Nigeria (FAAN) headquarters back to Lagos was a significant move. This decision, which prioritized the welfare of workers and stakeholders, has been lauded as a step toward operational efficiency.
The government also supported the expansion of Air Peace operations to London, a landmark development that bolsters Nigeria’s international aviation presence.
Efforts to encourage foreign airlines to reduce fares, achieve a commendable performance in the International Civil Aviation Organization (ICAO) Security Audit, and maintain industrial peace were credited to the leadership of the Minister of Aviation and Aerospace Development, Barrister Festus Keyamo.
The Road Ahead
As the aviation industry looks to 2025, the need for sustained investment and policy reforms remains paramount.
The aviation consultant, emphasized the importance of ensuring compliance with international standards, enhancing consumer protection, and addressing economic challenges that impact both operators and passengers.
Looking ahead, AFARN President, envisions a year of enhanced infrastructure and human resource development. The association emphasized the need for policies that encourage airlines investing in Maintenance, Repair, and Overhaul (MRO) projects to curb capital flight. Stakeholders who have remained steadfast in advancing the industry’s growth were also commended, with a call for greater government support.
Dr. Nwokoma expressed measured optimism about the progress recorded in 2024, describing the aviation industry as resilient despite significant challenges. He noted, “Air travel remains indispensable as the fastest means of transportation globally, and while our industry has performed admirably, there is always room for improvement, given Nigeria’s abundant resources.”
Despite the hurdles, the Nigerian aviation sector has shown resilience and a commitment to growth. With continued collaboration between government, regulatory bodies, and industry stakeholders, the skies look promising for Nigeria’s aviation future.
