Sirika promises high returns on investments in aviation infrastructure

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The Federal Government has called on prospective investors to invest in the country’s roadmap replete with lots of opportunity with over 34% return on investments.
Minister of state, aviation, Hadi Sirika who made the call at the International Civil Aviation Organization, ICAO World aviation forum in Abuja also gave the assurance that its implementation would be transparently done in accordance with global best practices.

The roadmap includes: Safety and Security infrastructure Strengthening, Concession of Airports (starting with Abuja, Lagos. Kano and Port Harcourt), Establishment of a National Carrier (Private sector led).
Others are the Establishment of Maintenance, Repair, and Overhaul (MRO) Centre, Establishment of an Aviation Leasing Company (ALC), Development of Agro cargo
Terminal and associated infrastructure, Establishment of an Aviation/Aeronautical University and Development of Aerotropolis.

The minister stressed that in executing the Roadmap which would be Private sector led through PPP, the Government had engaged internationally reputable Transaction Advisers for the various components in accordance with the infrastructure Concession and Regulatory Commission Act (ICRC) of 2007 and also ln-line with global beet practices.

Sirika explained that since government do not have the financial muscles to handle the huge infrastructure deficit in the sector and is determined to promote safety, security, its decision to involve the private sector was apt to develop and grow the industry.
“This deficit on the one hand is bad but on the other. it provides opportunity for
investment”.
He added, the infrastructure deficit facing the aviation sector not only in Nigeria, but in most part of the world. According to the Nigeria Integrated infrastructure Masterplan (NllMP), US$775bn is required to develop Nigeria’s transportation infrastructure over the next 30 years. Along the same line, the African Development Bank (ADB) estimates US$35bn/year (20102020), this of course is focused on four broad sectors i.e. transport and transport infrastructure, electricity & rural Access, water and sanitation, and lCT”.

He said Nigeria is strategically located in “the Gulf of Guinea, equidistant from most locations in Africa. with a population of 173 million people and accounts for about 50% of west African Population. Nigerian market serves the West and Central African region with population of 600 million people”.

The Minister lamented that despite these potential, it was sad to admit that there was an absence of a strong Air Carrier, major Maintenance, Repair and Overhaul (MRO) Centre, an efficient world class airport or even a significant catering company.
“Nigeria is positioned to take advantage of this opportunity, I strongly believe that Nigeria is the place to put your money. not only because we moved up 24 places in ease of doing business recently but more so because the Rate of Return on investment is 34% one of the highest in the world”.

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