ASRTI Advocates Policy Overhaul to Revive Nigeria’s Aviation Sector
The Aviation Safety Round Table Initiative (ASRTI) has called on the Minister for Aviation and Aerospace Development, Festus Keyamo and other industry stakeholders to exert conscious efforts towards re-evaluation of policies aimed at developing the industry for effective implementation.
ASRTI made this call today – Thursday, November 28, 2024, at its Quarter 3 Business Breakfast Meeting in Lagos, where stakeholders and industry veterans gathered to address critical challenges plaguing Nigeria’s aviation sector.
In his welcome address, ASRTI President, Ademola Onitiju, lauded recent strides in sector reforms but urged comprehensive measures to ensure sustainability and growth.
Onitiju expressed gratitude on behalf of the ASRTI Board of Trustees and Executive Committee, underscoring the importance of such engagements in shaping the future of aviation in Nigeria.
“Today’s discussion on the implications of the Cape Town Convention Practice Directions on Nigerian airlines and the economy is another step in advancing the frontiers of knowledge for the sector’s progress,” he noted.
The ASRTI President commended the activation of the Cape Town Convention Practice Directions by Justice John Tsoho, Chief Judge of the Federal High Court of Nigeria.
He also acknowledged Minister of Aviation and Aerospace Development Festus Keyamo, SAN, for initiating policies that have bolstered investor confidence and facilitated asset recovery for lenders and lessors.
“The implementation of the Practice Directions places Nigeria among nations with efficient judicial systems for aviation asset recovery, boosting credibility in international aviation circles,” Onitiju remarked.
Highlighting the sector’s existential challenges, including high airfares and dwindling patronage, Onitiju outlined several policy recommendations aimed at rescuing the aviation sector from collapse:
Conducive Policies: Government should adopt deliberate policies to create an enabling environment for the industry, including discriminatory exchange rates for maintenance, aircraft spare acquisition, and ground handling equipment.
Aviation Fuel Reforms: Exempt local refineries producing Jet A1 fuel from taxation and incentivise production to reduce costs for domestic operators. Onitiju emphasised that aviation fuel, which accounts for 45% of operational expenses, must be made affordable.
Single-Digit Lending Rates: Establish an Aviation Finance Bank to provide low-interest loans, enabling growth and competitiveness of local airlines.
Human Capital Development: Provide the Nigerian College of Aviation Technology (NCAT) with resources to train professionals and address talent shortages in the sector.
Public Service Obligation (PSO) Policy: Introduce policies to make underserved regions accessible by air, fostering national connectivity.
Operational Charge Waivers: Suspend aeronautical and navigational fees for 24 months to reduce operational costs and stimulate growth among local airlines.
Addressing emerging trends and challenges, Onitiju called for the adoption of advanced technologies, such as drones and electric vertical take-off aircraft, to modernise Nigeria’s aviation landscape.
He also emphasised the need to prioritise cybersecurity to protect the sector from GPS disruptions and enhance safety.
“Climate change, carbon emissions, and artificial intelligence in aeronautical management demand urgent attention. These issues, coupled with rising inflation and volatile exchange rates, threaten the sector’s survival,” he warned.
The ASRTI President stressed the importance of institutional governance, urging the Federal Government to inaugurate boards for all aviation agencies to ensure transparency and accountability.
“Institutions are the backbone of every society. Strengthening them is pivotal to ensuring ethical corporate governance within the aviation sector,” he stated.
He urged President Bola Tinubu’s administration to address inflationary pressures and adopt protectionist policies in the national interest.
“Political will is the key to actualising these reforms. Aviation remains a catalyst for economic growth, tourism, and national development,” he said.
