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Nigerian aviation industry’s feat as African economic integration agenda

By Giwa SHILE

Stakeholders in aviation industry believe that the industry has performed well in 2018, pleading with the aviation authority to sustain the tempo of development further.

They note that although Nigerian economy has overcome recession, the Federal Government ought to begin plans to make Nigeria a hub of aviation business in West and Central Africa.

According to them, in spite of some challenges, major decisions resulting in tangible a development have been taken to enable the country to actualise the Aviation Sector Road Map of the present administration.

For instance, early in 2018, Nigeria’s oldest airline, Aero Contractors successfully conducted the first C-Check on Boeing B737-500 in Nigeria at the Murtala Muhammed Airport, Lagos.

Sen. Hadi Sirika, Minister of State for Aviation, said that the Nigerian economy would retain more than N20 billion annually through local C-Checks on Boeing 737-300, B737-400 and B737-500 aircraft.

“Boeing is the most common aircraft type used by indigenous operators in Nigeria and we have more than 30 of such aircraft.

“A normal C-Check costs between 1.8 million dollars and two million dollars outside the country.

“The fact that we can now do it here in Nigeria is a huge milestone because it will reduce the demand for foreign exchange by airlines.’’

He said it would also reflect directly in a significant drop in maintenance costs for airlines in Nigeria and the sub-region as well as a reduction in downtime for such checks.

The minister said that the feat had made Aero Contractors the only airline carrying out Boeing C-Checks in West and Central Africa.

In the same vein, the Single African Air Transport Market (SAATM) was inaugurated in Addis Ababa, Ethiopia in late January 2018 by the African Union Commission.

SAATM is a flagship project of the African Union Agenda 2063 to create a single unified air transport market in Africa.

It is also for the liberalisation of civil aviation in Africa and an impetus to the continent’s economic integration agenda.

The Ministry of Aviation said that the Federal Government was committed to the full implementation of SAATM beyond 2018, opposition from indigenous airlines notwithstanding.

Further to that, Nigeria retained its Category One status following a successful re-certification audit conducted on its aviation facilities by the United States Federal Aviation Administration (FAA).

A team of auditors from the FAA had visited Nigeria for the audit of the safety status of the country’s civil aviation industry in November 2017.

The re-certification status has enabled Nigerian-registered carriers to continue to fly directly to the U.S.

Nigeria had attained Category One status in 2010 and also retained it until 2014 before the 2018 success.

To ensure a safe aviation industry, the Federal Government constituted a panel in March 2018, to carry out a comprehensive audit of Dana Air’s personnel, operations and technical capacity following two near mishaps suffered by the airline’s aircraft.

One of the airline’s aircraft had its door broken while taxing at the Nnamdi Azikiwe International Airport, Abuja on Feb. 8, 2018

Another of its aircraft overshot the runway at the Port Harcourt International Airport on Feb. 21, 2018.

This prompted Sirika to submit preliminary reports for the consideration of the Federal Executive Council.

Describing the development as fundamental to air safety, Mr Kingsley Ezenwa, Dana Air Media and Communications Manager, said that the airline supported the audit and was willing to work with the Federal Government to demonstrate its commitment to flying safe.

Aiming at being the hub of aviation business in West and Central Africa,

Nigeria hosted the 59th Airports Council International (ACI) Africa Conference in Lagos in April 2018.

Mr Boss Mustapha, Secretary to the Government of the Federation said at the conference that the full implementation of the Nigeria Aviation Sector Roadmap would result in the transformation of business and economic growth in the sector.

He also said that the importance of aviation as a critical tool for social and economic development could not be over-emphasised, given its potential for immense contributions to economy.

He said in 2017 alone, the sector facilitated the movement of more than 7.6 billion passengers, 109 million tonnes of cargo and recorded 89 million aircraft movement.

Also, for guaranteed air safety, the Nigerian Civil Aviation Authority (NCAA) suspended the Air Operators Certificate of FirstNation Airways indefinitely in May 2018.

The NCAA said that the suspension was sequel to the flagrant and continuous violation of the terms and conditions of issuance of its AOC by the airline.

However, Max Air began scheduled flight operations within the same period to fill the gap created by the suspension of FirstNation Airways.

For efficiency and cost effectiveness, Buhari signed an Executive Order for the removal of Value Added (VAT) from “All Forms of Shared Transportation,’’ on June 6, 2018 to the delight of domestic airline operators.

Capt. Noggie Meggisson, the Chairman of Airline Operators of Nigeria, said that the decision presented a veritable opportunity for the aviation industry to immediately take advantage of the order to expedite a white paper to that effect.

“Nigerians have been crying out for decades now for discussions on the immediate removal of VAT from domestic air transportation, in line with global best practice, but we have barely been heard over the years.

“VAT is an added burden on our passengers who have limited funds at their disposal and have reached their elastic point in this difficult time in the nation’s economy.

“This adversely affects the sector by reducing the number of those who can afford to travel by air due to high fares in this tough economic times’’, he said.

In the same vein, the Federal Government unveiled the name and logo of the new national carrier, “Nigeria Air’’, at the Farnborough Airshow in London on July 18, 2018.

Although the project was temporarily suspended on Sept.19, 2018 by the Federal Executive Council, the ministry said that it was back on track and currently at procurement stage.

Sirika said that a consortium of Transaction Advisers, comprising Airline Management Group Ltd., Avia Solutions Ltd. and Tianaero FZE, were appointed for the project in line with best practices.

Apart from this, on Oct. 15, 2018, the Presidential Initiative on Continuous Audit (PICA) began the verification exercise of former workers of the defunct Nigeria Airways in Lagos, Enugu and Kano.

The exercise was conducted by PICA following the approval of the N22.6 billion approved as part payment of their entitlements by the Federal Government.

At the conclusion of the verification, the government began crediting the accounts of more than 5,000 beneficiaries who had been in pitiable states due to their inability to cater for themselves and their families.

The former national carrier was liquidated in 2004 without paying the workers their severance packages as stipulated in the extant labour laws.

The workers were paid a fraction of their entitlements by the late President Umaru Yar’Adua’s administration in 2008 before Buhari approved the part payment of N22.6 billion to them.

The government has also promised to pay the other half of the money to them as soon as funds are available.

Mr Godwin Jibodu, Chairman, Nigeria Airways Elders’ Forum, commended the president for coming to their rescue.

“We are very grateful to the Buhari-led administration for finally coming to wipe our tears away after all these years.

“The government has given hope to these pensioners and now they will be able to attend to their health issues and other responsibilities,’’ Jibodu said.

Committed to building a virile aviation sector, Buhari inaugurated the new International Terminal of the Port Harcourt International Airport, Omagwa, Rivers on Oct. 25, 2018.

Also, Buhari inaugurated the new International Terminal of the Nnamdi Azikiwe International Airport, Abuja on Dec. 20, 2018.

The president said that the terminal would be a catalyst for economic growth to sustain development in civil aviation in Nigeria.

Regional Director, West and Central Africa, International Civil Aviation Organisation, Mr Mam Jallow, therefore, commended the Federal Government for supporting the civil aviation sector and its commitment to fulfilling Nigeria’s international obligations.

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