The federal government has ordered the Central Bank of Nigeria (CBN) to hold quarterly meetings with foreign airlines operating in Nigeria as part of measures to pay back their blocked funds.
The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this on Wednesday, September 13, in Abuja at the 7th Aviation Summit.
Before the directive by the minister, foreign airlines had found it difficult to get their funds due to Nigeria’s foreign exchange policy.
Keyamo, while stating that he believes that a proactive approach is necessary to find a lasting solution to the issues, added that the federal government was also addressing the challenges associated with foreign exchange supply which resulted in the huge sum of money being owed foreign airlines.
He said: “The current administration is aware that one of the setbacks entrepreneurs have suffered in Nigeria in recent years is the fluctuation of foreign exchange and its availability.
“This administration is committed to ensuring that forex is readily available to entrepreneurs and I have directed that the Central Bank of Nigeria (CBN) hold quarterly reconciliation meetings with a view to resolving this issue.”
He also noted that President Bola Tinubu was in the United Arab Emirates a few days ago to resolve the issue of blocked funds, amongst other issues.
He also hinted that the federal government was willing to give tax breaks to interested investors in the aviation sector.
The minister said: “The current administration is open to providing tax holidays to encourage existing and new entrants into the Nigerian aviation sector. I wish to reiterate that my administration will continue to sustain the support being given to the industry.”
Keyamo also unveiled three roadmap projects comprising Aerotropolis, Aircraft Leasing Company, and Maintenance, Repair and Overhaul facility.
In addition to the roadmap, he said he would focus on five areas to realize the country’s vision of making Nigeria the Aviation hub of Africa.
The areas listed include infrastructure upgrades, aircraft leasing company, maintenance repair and overhaul (MRO) facility, and forex availability.
He said: “As you are all aware, air transport remains an essential component of the global transportation system and it’s a crucial driver of economic, social and cultural development worldwide. Air transport generates economic growth and development, provides jobs, and fosters a range of socio-economic benefits.
“In order to continue to harness and maximize the benefits of air transport in Africa, it is essential and expedient to continue to promote collaboration, knowledge sharing, and business development within the African aviation community that would practically address all the significant and structural challenges.
“Having this unique and important event for the seventh time demonstrates the organizer’s determination and interest to support the sustainable development of air transport in Africa. I therefore wish to take this opportunity to appreciate Times Aerospace Limited who has been the champion of the Aviation Africa Summit as well as making Nigeria the first country to host this noble event in West Africa.
“The recent global events further exposed the immense contribution and importance of air transportation as a catalyst for economic development, the vital engine of global socio-economic growth, one of the greatest contributors to the advancement of modern society, and a key instrument for achieving the United Nations Sustainable Development Goals (SDGs). These underscore why the world was greatly impacted when international aviation was disrupted by the pandemic and other global occurrences,” he added.
The Vice President of the International Air Transport Association (IATA) Africa and Middle East, Kamil Al Alwadi, condemned the high airport charges in Nigeria.
He said: “In a recent research conducted, we discovered that the most expensive airport in Africa is Abuja airport, followed by Lagos airport with all these exorbitant charges, Nigerian airlines can’t compete with their foreign counterparts.
“Africa has put itself in a place where it cannot help its own, expensive fuel, excessive charges, leasing, and insurance through the roof, the airlines need to be financially viable too. The airlines contribute to the country but Nigeria needs to decide what to do to them to survive.
“However, despite the challenges, the industry continues to move towards profitability following the COVID disruption and could be back as soon as next year. Underpinning this is the robust demand for air travel. As we saw in the second quarter of 2023 – and for two consecutive quarters – African carriers had one of the world’s highest annual passenger traffic growth rates, second only to Asia Pacific.
“With total traffic up 38.9% compared to the same quarter in 2022, African carrier’s growth outperformed the industry-wide average for total and international traffic, even though the region has not fully recovered to pre-pandemic levels.
“Q2 2023 RPKs were 9.2% below the same quarter in 2019. Despite this continued positive performance, the region still confronts economic challenges that severely limit the affordability of air travel, in addition to a range of infrastructure issues that curb capacity and hinder the development of consistent air service.
“As you can see, the continent stands out as the region with the greatest potential and opportunity for aviation. But this potential is limited by safety incidents, infrastructure constraints, blocked funds, high costs, lack of connectivity, regulatory impediments, slow adoption of global standards, and skills shortages, among other factors,” he said. (The Nation)
