BASL Advocates Aviation Capacity Expansion in Nigeria, Applauds Implementation of Cape Town Convention

The Chief Operating Officer (COO) of Bi-Courtney Aviation Services Limited (BASL), operator of Murtala Muhammed Airport Terminal Two (MMA2), Mr Remi Jibodu, has commended the Federal Government for implementing the Cape Town Convention (CTC) practice, stating that the initiative will significantly enhance capacity within Nigeria’s aviation industry.

Jibodu made this assertion when the executive members of the League of Airport and Aviation Correspondents (LAAC) paid a courtesy visit to the company’s office at MMA2 in Lagos on Tuesday.

He highlighted the advantages of the Cape Town Convention, stressing that it would facilitate access to dry leases for Nigerian airlines.

This, he explained, would streamline aviation equipment financing, reduce operational costs, and provide flexibility in utilising local crew instead of foreign personnel.

“When you look at most of the aircraft brought in around November and December last year, they were relatively cheaper due to the season. However, the cost was still significant. I know airlines that had to return their aircraft because they couldn’t cope with the lease agreements,” Jibodu said.

He further noted that with high interest rates – currently exceeding 30 per cent – and inflation at approximately 24.7 per cent, airlines relying on local financial institutions would struggle to break even under conventional lease agreements.

Jibodu advocated for an increase in dry lease arrangements, which he believes would allow airlines to retain and develop local pilots, generate more revenue, and create employment opportunities.

“With dry lease agreements, our airlines can maintain their existing crew, develop Nigerian pilots, and increase employment within the sector,” he stated.

However, he advised that while expanding aviation capacity, the government must consider route optimisation.

According to him, while routes such as Lagos, Abuja, and Port Harcourt are well utilised, others remain underdeveloped. To bridge this gap, he urged the government to establish trade centres at various airport locations to stimulate economic activity.

“If you introduce new capacity, airlines will assess whether they can fill those seats. The first step should be establishing trade centres, and airports should play a role in linking these centres to existing economic activities,” he explained.

Jibodu emphasised that sustainable airport expansion must be backed by strong economic activities.

“It is not just about opening new airports in states. The real question is, do these airports have economic viability? The government needs to stimulate economic activity around them to ensure their sustainability,” he added.

Highlighting BASL’s efforts at MMA2, Jibodu pointed out that the terminal accommodates between 10,000 and 15,000 people daily, with over 100 tenants operating within the facility.

He revealed that the number of tenants is increasing, with another bank set to open a branch at the terminal soon.

“We are not just an airport operator; we are a commercial hub. Our rental space is expanding, and we are bringing in more businesses,” he said.

Speaking on cargo operations, Jibodu disclosed that BASL has been making strategic moves to contribute to the country’s cargo chain. Last year, the company launched a cold storage facility to improve Nigeria’s cargo transport system.

“A lot of goods are still being transported by road, which is risky. We are growing our cold chain logistics and encouraging more investors to come into the dedicated freighter business,” he stated.

After 18 years of managing MMA2, Jibodu asserted that BASL has built sufficient expertise to extend its management services to other airports in Nigeria and even across the West African region.

“We have successfully managed MMA2 for almost two decades. Based on our track record, we should be given the first right of refusal for any airport concession in Nigeria,” he affirmed.

On passenger traffic at MMA2, Jibodu noted fluctuations in numbers last year but expressed optimism for 2025.

“From April last year, passenger traffic was not as strong, especially after Dana Air left. By mid-year, economic difficulties, including fuel price surges, further affected operations. However, by October, things began to pick up again,” he said.

He observed that with the recent stabilisation of the foreign exchange rate at around N1,400 to the US dollar, the aviation industry is likely to experience a better year.

“We believe that the government’s economic team will take further steps to improve the situation. Ultimately, increased productivity is what drives passenger traffic, and if economic productivity improves, 2025 will be a fantastic year,” he projected.

In his remarks, the Chairman of LAAC, Mr Idris Suleiman, commended BASL for its dedication to ensuring smooth passenger facilitation at MMA2.

“Passengers’ comfort is paramount in aviation. The terminal management, in collaboration with airlines, must continue to ensure seamless operations for timely departures and arrivals,” Suleiman stated.

He also praised MMA2 as Africa’s leading privately managed airport terminal, urging BASL to continue upgrading its facilities and processes.

“On behalf of LAAC, we pledge our support for BASL and look forward to a symbiotic relationship between our organisation and the terminal management,” he concluded.