…Stresses Boosting Economic Growth Crucial for the Sector
The aviation industry stands at a pivotal juncture, grappling with significant challenges but also poised for growth and transformation, says, Dr. Thomas Ogungbagbe.
Speaking on the theme “Aviation Sustainability Amidst Challenging Macro-Economic Environment,” during the 28th Annual Conference of the League of Airports and Aviation Correspondent LAAC, Dr. Ogungbagbe highlighted the severe impacts of the macro-economic environment on Nigeria’s aviation sector, citing high fuel costs, poor access to foreign exchange, a weakening currency, and ongoing infrastructure needs.
Despite these hurdles, he sees these challenges as opportunities for innovation and collaboration.
Nigeria, with a population of approximately 250 million, operates over 30 airports, yet only three are financially viable, this underutilization of aviation infrastructure underscores the need for a strategic shift towards sustainability in the sector.
Dr. Ogungbagbe who is the Chief Executive Officer, CITA Aviation Fuelling Company, emphasized that passenger traffic is closely linked to economic activity, adding that, a strong economy drives business and leisure travel, leading to higher passenger volumes.
Therefore, stimulating economic growth is crucial for boosting air travel demand, requiring a concerted effort from government, the private sector, and international partners.
Dr. Ogungbagbe noted that, investing in new airport projects while neglecting essential infrastructure like roads is counterproductive.
According to him, improved road networks facilitate easier access to airports, making air travel more attractive and prioritizing the maintenance and improvement of existing airports and infrastructure over new projects is essential for sustainable growth.
Drawing on insights from regions like Singapore and Hong Kong, Dr. Ogungbagbe highlighted the benefits of focusing on economic activities and strategic investments.
Singapore’s Changi Airport saw 16.5 million passenger movements in the first three months of 2024, while Hong Kong recorded a 12-month rolling passenger volume of 44 million. These figures illustrate the potential for significant passenger traffic with favorable economic conditions and strategic investments, says Ogungbagbe.
To enhance aviation sustainability in Nigeria, the CITA CEO outlined several key strategies to include amongst others, stimulate economic growth, allocate resources efficiently, encouraging public-private partnerships and developing integrated transportation plans.
Dr. Ogungbagbe also addressed the critical issue of high aviation fuel costs, which impact ticket prices, operational costs, and passenger traffic. The volatility in fuel prices, combined with poor access to foreign exchange and a weakening currency, exacerbates financial strains on airlines. Maintenance costs and technological upgrades further burden airlines, challenging their profitability.
He praised the League of Airport and Aviation Correspondents (LAAC) for its role in fostering informed discussions and providing accurate, analytical information about the aviation sector.
The CITA boss also acknowledged the media’s crucial role in ensuring the industry’s challenges are understood and addressed.
“We must remain committed to making meaningful progress for our industry and our nation,” Dr. Ogungbagbe urged as he concluded his remarks and called for continued collaboration and dedication to the day’s agenda.
