….Boeing’s Proven Track Record in Aviation to Benefit Nigeria and Africa…Menderrata
The signing of a Memorandum of Understanding (MoU) between Nigeria and Boeing to provide more aircraft for local operators has been welcomed as a positive development, but concerns have been raised about the lack of financing details.
Chairman, Westlink airline, Captain Ibrahim Mshelia, expressed his reservations about the MoU, saying that the choice of aircraft is dependent on the operator, and that the minister’s role is to open up avenues for operators to access airplanes.
“I don’t know what the contents of the MoU are, but I do know that the choice of airplane is dependent on the operator,” Captain Mshelia said.
“The minister is opening up avenues for operators to access airplanes, but I don’t know what the financing is about. Does it have financing to go with it as well?”
Captain Mshelia noted that Nigeria has a relationship with other aircraft manufacturers, including Airbus and Embraer, and that Boeing is a traditional partner with the country.
However, he emphasized that the MoU needs to be supported by financing in order to be effective.
“Our program has always been financing, cheap financing for airlines commensurate to what happens with other nations, 3.5% dollarized interest”.
Captain Mshelia said, “And the bank should also follow the system that others use to discharge these funds. By the end of the day, we end up with 5% and the dollar denominated 5% and we’re able to get the funds.”
He also expressed concerns that MoU’s often end up collecting dust without any positive actions being taken.
“MOUs just end up in the cupboard and collect dust, we need to go a step further to see if we can find different appropriate financing as well.”
Despite these concerns, Captain Mshelia welcomed the MoU as a step in the right direction, saying that it is a good thing to have a relationship with manufacturers, but that more needs to be done to support the growth of the aviation industry in Nigeria.
Also reacting to the MoU on Arise TV News interview segment, Anita Menderrata, a global aviation Consultant said, the partnership is expected to unlock the vast potential of the African aviation market, which currently represents only 2% of global trade in cargo and passenger movements.
She said, the MOU is a significant starting point to unlock the potential of the African aviation market.
“This is excellent news for Nigeria and Africa as a whole,” she said. “Nigeria is a hub for the continent, and advancing its aviation sector will have a ripple effect on the entire region.”
The MoU, she mentioned focuses on strengthening the aviation ecosystem in Nigeria, including airports, airlines, air traffic control, capacity building, supply chain management, and security.
Boeing has a proven track record of achieving this in other countries, including the US, UAE, Saudi Arabia, South Korea, Australia, and India, Menderrata said.
The partnership is also expected to bring excellence to aviation in Nigeria and Africa, leveraging the country’s hub status to unlock African growth and development.
“This is a perfect fit of a partner, Boeing understands Africa, and its work with Nigeria will be similar to what it has done with other countries.”
The MoU is also significant in the context of the COVID-19 pandemic, which has had a devastating impact on the global aviation industry.
The grounding of almost 16,000 commercial aircraft globally has led to a massive reactivation of the ecosystem, and Africa is outpacing the recovery rates with a 5% growth in aviation and travel compared to 2019 in the first quarter of this year.
The partnership is also focused on safety, Menderrata noted with Boeing’s new CEO, Kelly, prioritizing safety in the company’s recovery efforts.
“This is a critical aspect of the partnership. Safety is always the top priority in aviation, and Boeing is committed to ensuring that all aviation development in Nigeria is safe and secure.”
The MOU is a testament to the importance of partnerships in advancing the aviation industry. “This is a continuous conversation on how to advance the industry,” said Menderrata.
“It’s a partnership that focuses on the hardware and software of the industry, including skills development and a culture of safety, excellence, and pride in countries being able to carry their citizens and others around the world.”
The signing of the MOU is a significant milestone in the development of Nigeria’s aviation sector and has the potential to benefit not just the country but the entire continent.
