The aviation industry in Nigeria, once brimming with promise, now faces a web of policy constraints and systemic inefficiencies that threaten its growth and sustainability.
Speaking at the recent Aviation Safety Roundtable Initiatives, ASRTI Business Breakfast Meeting, with the theme: “Cape Town Convention: The Implications of the Cape Town Practice Directions on the Fortunes of Nigerian Airlines and the Economy”, Mr. Roland Iyayi, CEO of Top Brass Aviation, shed light on the implications of the Cape Town Convention and its practice directions for Nigerian airlines and the broader economy.
His speech painted a vivid picture of the challenges and opportunities within the sector.
Iyayi began by highlighting a critical reality: 90% of Nigeria’s domestic fleet is owned by Nigerian airlines.
However, much of this fleet comprises aging aircraft, with most exceeding the 22-year age limit set by regulatory policies. While such regulations are designed to ensure safety, they inadvertently stifle growth by limiting access to viable, cost-effective aircraft.
This restriction, Iyayi argued, results in destructive competition, as airlines scramble for limited market opportunities on major routes like Lagos-Abuja and Lagos-Port Harcourt.
The global fleet renewal trend further compounds the issue. Major manufacturers like Boeing and Airbus are prioritizing new deliveries, leaving older aircraft on the market.
For Nigeria, this creates a bottleneck, as the 22-year age restriction renders many of these planes ineligible for operation in the country. The result is a paradox where airlines are forced to pay a premium for older aircraft simply because they are bound for Nigeria—a direct consequence of policies that do not align with global standards.
Beyond fleet limitations, Iyayi delved into infrastructure challenges. Nigeria boasts 31 airports and 91 airstrips, yet many remain underutilized due to inadequate government support and policies that fail to foster regional connectivity.
He lamented the missed opportunities in tourism and regional aviation, citing examples from East Africa, where smaller aircraft are effectively used to unlock economic potential.
Nigeria’s reliance on large aircraft for domestic operations, he noted, is economically unviable for less-trafficked routes.
Iyayi also addressed the outdated 5% ticket sales charge, a policy introduced over four decades ago. Originally intended to support infrastructure development, this levy has become a financial burden on airlines and passengers alike.
He argued for its transformation into a development levy, specifically earmarked to close Nigeria’s significant infrastructure gap.
The inefficiencies extend to the Nigeria Civil Aviation Authority (NCAA), which, despite contributing significantly to the government’s Internally Generated Revenue (IGR), struggles to adequately train personnel or modernize its operations.
“The 5% ticket sales charge, we need to find a way as an industry to warehouse that into a development levy. The infrastructure gap is huge. If this government today said we will provide on an annual basis $500 million over the next 10 years, it will not address our infrastructure gap. That’s a reality. Yet, NCAA last year gave the government $500 million as IGR and the same NCAA has not been able to train adequately all its personnel, so, there are a lot of issues and they are conflicting, they are contradictory”.
This imbalance, Iyayi asserted, underscores the need for a holistic review of aviation policies.
Central to the discussion was the Cape Town Convention’s IDERA (Irrevocable De-registration and Export Request Authorization) clause.
While designed to protect lessors, it has left Nigerian airlines vulnerable. Iyayi recounted instances where lessors repossessed aircraft despite no defaults, a situation exacerbated by the NCAA’s inability to intervene effectively.
He emphasized that the IDERA must work for both lessors and lessees to create a fair playing field.
The Topbrass boss called for deliberate and intentional government policies to address these systemic issues.
He advocated for a tiered licensing system to enable the operation of smaller aircraft, revitalization of regional airstrips, and policies tailored to Nigeria’s unique aviation needs.
Without these reforms, he warned, the industry would continue to flounder, unable to realize its potential as a catalyst for economic growth.
The Topbrass CEO’s insights serve as a clarion call to policymakers, urging them to embrace reform and innovation to steer Nigerian aviation toward a brighter future.
