CITA Boss Proposes Pathways to Navigating Sustainability of Nigeria’s Aviation Sector Amidst Economic Challenges
Nigeria’s aviation sector has been grappling with a myriad of challenges, including aging infrastructure, inadequate funding for airlines in the face of high operational costs due to fluctuating fuel prices and currency devaluation.
There is also poor aircraft maintenance culture due to inadequate MRO facilities as the sector struggles with limited access to funding, raising safety concerns. These issues, collectively, have stymied the development of a robust and competitive aviation industry in the country over the years.
To change the situation, the Founder and Chief Executive Officer of CITA Aviation Fuelling Company Ltd, Dr. Thomas Ogungbangbe, has proposed strategic pathways for the revitalisation of the sector.
Speaking to a distinguished audience at the recently concluded 28th Annual Conference of the League of Airport and Aviation Correspondents (LAAC), Dr. Ogungbangbe emphasised the critical theme of the conference – “Aviation Sustainability Amidst Challenging Macro-Economic Environment,” highlighting the current state of the industry.
“Our industry stands at a crossroads, facing significant challenges but also tremendous opportunities for growth and transformation,” Dr. Ogungbangbe stated.
He pointed out the severe impact of high fuel costs, limited access to foreign exchange, a weakening currency, and the constant need for maintenance and infrastructure improvements on the Nigerian aviation sector.
He said, “The Nigerian aviation sector, like many others around the world, has been severely impacted by the macro-economic environment.
“High fuel costs, poor access to foreign exchange, a weakening
currency, and the constant need for maintenance and infrastructure improvements are just a few of
the hurdles we must overcome.”
Despite these obstacles, Dr. Ogungbangbe sees a silver lining: “These challenges present us with a unique opportunity to innovate, collaborate, and drive the industry forward.”
Ogungbangbe observed that the sector, serving a nation of approximately 250 million people with over 30 airports, currently sees only three airports operating profitably.
He said this stark reality highlights a severe underutilisation of aviation infrastructure and underscores the need for a strategic shift towards aviation sustainability.
“A robust economy generates increased business and leisure travel, leading to higher passenger volumes,” he noted.
Dr. Ogungbangbe emphasised that stimulating economic growth and activities is paramount to boosting demand for air travel.
He called for a concerted effort from all stakeholders, including the government, private sector, and international partners, to drive this agenda.
One of his key recommendations is the prioritisation of road infrastructure improvement to enhance access to airports, making air travel a more attractive option.
“Investing in new airport projects while neglecting essential infrastructure like roads is counterproductive,” he asserted.
Drawing parallels with regions like Singapore and Hong Kong, Dr. Ogungbangbe illustrated the potential benefits of strategic investments in economic activities.
He noted that Singapore, with a population of 6.03 million, recorded 16.5 million passenger movements through Changi Airport in the first quarter of 2024.
Similarly, Hong Kong, with a population of 7.5 million, saw a 12-month rolling passenger volume of 44 million.
According to him, these examples underline the significant potential for passenger traffic growth in Nigeria if economic conditions are favorable and strategic investments are made.
To improve aviation survivability in Nigeria, Dr. Ogungbangbe proposed several strategic actions, which include stimulating economic growth by focusing on policies and investments that will improve road infrastructure, support small and medium-sized enterprises (SMEs), and enhance sectors like tourism and trade.
He said there is a need to allocate resources efficiently and prioritise the maintenance and improvement of existing airports and essential infrastructure to enhance the overall travel ecosystem.
Another critical proposition is to encourage Public-Private Partnerships (PPP) to invest in and manage airport infrastructure, bringing in expertise, efficiency, and additional funding.
Ogungbangbe also called for the creation of integrated transportation plans that connect airports with other modes of transport, facilitating easier access and enhancing travel convenience.
He emphasised the need for marketing and promotion of Nigeria as a travel destination by offering incentives for airlines to increase routes and campaigns to attract international tourists and business travelers.
Dr. Ogungbangbe also highlighted the critical issue of aviation fuel costs, which is significantly affecting ticket prices, operational costs, and passenger traffic.
He said the volatility in fuel prices, coupled with poor access to foreign exchange and a weakening currency, exacerbates the financial strain on airlines.
In tackling these issues, the CITA boss acknowledged the role of the League of Airport and Aviation Correspondents (LAAC) in enriching discussions and providing accurate, responsible, and analytical information about the sector.
He also commended the media for its role in ensuring that the challenges and voices within the industry are heard and understood.
“Today’s summit is our platform for appraising LAAC and its role in setting the industry on the path of prosperity. I celebrate the fulfillment of your responsibility and constitutional mandate.
“Yours is not a quiet media that acquiesces into silence but one that remains willing, prepared, and focused on the mission of driving our industry forward,” he concluded.
