Following the recent call by experts in the Nigerian aviation sector requesting for the intervention of the Federal Government, Acting President Yemi Osinbajo has assured the stakeholders that the administration is set to tackle factors hindering the growth of the sector.
Assuring the delegation of Chief Executives of Airline Operators of Nigeria, Osinbajo promised to address the issues that are hindering the sector from taking advantage of its natural geographical position as the hub for Africa.
Osinbajo used the meeting as a fact-finding exercise to hear firsthand from the airline investors, what domestic airlines are going through.
“With most of its airports at approximately sea level, being the sixth largest producer of crude oil (JetA1), a human population of 190 million, and skilled manpower, Nigeria should be the hub for aviation activities on the African continent,” he said.
He acknowledged the difficult situation the airlines face and promised to take a closer look at the various issues raised in order to find ways of addressing them, making it more friendly and promoting the ease of doing business in the airline industry, as well as position Nigeria to take advantage of the natural, God-given geographical location as the hub in Africa.
Meanwhile, Chairman, AON, Sir Nogie Meggison, said that some of the major issues facing airlines currently include, but are not limited to, removal of Value Added Tax ( as domestic airlines are the only mode of transport paying VAT – Marine, Road, Rail and even the International airlines don’t pay VAT); harmonisation of over 35 Multiple Charges; reviewing five per cent TSC to a flat rate (in line with the world practices); poor navigational and landing aids, high cost and epileptic supply of JetA1 and obsolete infrastructure, among others.
He said, “There is an urgent need for a deliberate economic policy that will support the positive growth of aviation and survival of domestic airlines in the country. For instance, following the air crashes of 2005/06, government came up with a policy to ensure air safety.
“Similarly, the economic policy for the sustenance of the industry needs to be seriously looked into. “Safety and Economic policy go hand-in-hand. Where there is no financial profit for airlines, safety would be compromised. A clear economic policy for the survival of domestic airlines is very critical at this time, which has resulted over the years in the death of over 25 airlines in 30 years.
“Safety and financial economic policy must go hand-in-hand; as airline investors are in the business of aviation for the profit and can’t make profit without safety or have a safe airline without profit,” he counselled.
