Senator
Hadi Sirika, the Honourable Minister of State, Aviation has unfolded the vision
and strategies of the President Mohammad Buhari administration for achieving a
quantum leap forward for the Nigerian Aviation industry. First, he made it
clear that Aviation” is pivotal to the growth of key economic sectors, certainly
not limited to travel and tourism. Agriculture production and distribution,
rural development, trade and commerce, manufacturing, oil and other non-oil
sectors.”
In
what could be termed a comprehensive mission, Sirika had quite some surprises
and a handful of seemingly simple solutions to longstanding problems and
issues. One surprise: Government plans to concession four major airports to the
private sector.
The Minister believes that by bringing in the private sector,
the country can achieve better infrastructural development and improve the
efficiency of service delivery at these airports. The airports in question are
the international airports in Lagos, Abuja, Port Harcourt and Kano.
And
it’s also the month of May, 2016, which makes it one year since this
administration came on board, it was an opportunity for stock taking.
Sirika
said that some of the challenges facing the country’s airports were that of
obsolete equipment and dilapidated infrastructure; obsolete equipment and
inadequate capacity. These challenges, according to him, are expected to be
addressed by the newly initiated concession programme, the much awaited
completion of five new, world class, ultra-modern airport terminals in Lagos,
Abuja, Kano, Enugu and Port Harcourt later this year.
On
the focus, the Minister said that “ the present administration is focussing on
issues that will rapidly develop the aviation industry within the shortest
possible time.” These issues, include aviation safety and security,
infrastructural development, the establishment of a national carrier, lack of a
world class aircraft maintenance, repair and overhaul,(MRO) facility in the
country.
Others
are: How to quickly develop our air cargo capacity in order to participate
actively in multi-billion dollars global agro-allied export trade. The
restructuring of the country’s aviation agencies and the setting up of an
aerospace University in the country.
In
his usually forthright manner, Sirika states the administration’s position on
all of these tough issues, perhaps, leaving no one in doubt about the policy
direction of the Buhari administration as regards the aviation industry. On
safety and security at our airports, the minister was of the view that
government’s response should include the development of a new security strategy
framework in partnership with international security organisations, the
determined implementation of a certification programme for all our airports and
a comprehensive security threat and vulnerability assessment of our airports.
The Minister of state recently inaugurated a technical committee with the
mandate to look into security at the country’s airports.
On
the vexed issue of a national carrier, Sirika was emphatic that the
administration will establish a national carrier because of the benefits that
the country would derive from it, especially from the various Bilateral and
Multilateral air services agreements signed by the government with other
countries, worldwide. It would also help stem current capital flight due to
foreign airlines exploiting the current absence of a Nigerian national carrier.
He
said however, that the carrier will be floated on the stock exchange and listed
whereby Nigerians can buy its shares and own it. Furthermore, to realise this
laudable goal, he said that government would engage the services of a
transaction adviser “to develop an appropriate business model and framework to
establish a national carrier using a public/private partnership concept.” When
in place, the national carrier would be expected to form alliances and joint
ventures with other carriers, in order to increase its reach and routes, Sirika
said.
There
is also the issue of national prestige and national pride when talking about a
national carrier, as some smaller African countries such as Ethiopia proudly
fly their countries colours on their national carriers, many of which have
become successful ventures, the Minister said.
On
the appalling lack of a world class aircraft maintenance, repair and overhaul,
(MRO)l facility in West and Central Africa, the Aviation helmsman challenges
Nigerian investors to key into the bountiful opportunity.
He said that the
current administration was determined to create an enabling environment that
would provide an impetus to willing investors. He hoped that such investors
could go beyond only MRO but actually initiate the local manufacturing of light
aircraft spare parts in the country, which would help save foreign exchange and
create more jobs for Nigerians in-country.
The
issue of air cargo facilities ties with the country’s hopes of generating more
foreign exchange from agricultural produce and other non-oil exports. As the
Minister noted the country is current losing a lot in potential income from
export of perishable agricultural produce including fresh flowers and vegetable
as a result of the absence of adequate air cargo facilities.
Apart
from generating forex, it has far reaching socio- economic impact as it will
improve farmers’ income significantly and help stem rural to urban migration.
Government is therefore working hard to meet this challenge, with several of
the required facilities under construction in strategic areas round the
country, Sirika noted.
The
country’s target is to get 40 per cent of the market for agro-allied and
perishable agric produce export coming from Africa to global markets, he said.
A
thoroughbred and experienced air pilot himself, the minister noted, howbeit
sadly, that many well trained professional aviators, especially pilots are
unemployed. Whereas, on the other hand, their foreign counterparts are having a
field day in the country working for foreign airlines operating in the country.
Not mincing words, the minister said that government would henceforth
vigorously enforce expatriate quotas for staffing of foreign airlines operating
in the country, so that foreigners do not continue to take jobs meant for
Nigerians. And review the policy on validation of foreign licenses (no aviator
left behind policy.)
The
Minister said that it is a policy of the All Progressives Congress, APC
administration to set up an Aviation Development Bank, which he said, will
offer Nigerian aviation entrepreneurs long term, low interest loans in single
digits to help finance their airline businesses. This, accordingly, will boost
the growth of the industry and help create stability.
Other
salient industry issues which the Minister addressed are that of the supply and
pricing of Aviation Jet A-one fuel, sourcing of foreign exchange by airlines
for their operations and aircraft leasing. On Jet A-1, Sirika said government
has made arrangements to start local production of the fuel which is currently
100 per cent imported.
Discussions
are also in top gear with the Central Bank of Nigeria, CBN to ease forex supply
shortfall to airlines, especially foreign airlines because they operate and pay
for several services in foreign exchange whereas, tickets are sold in naira
locally, putting airlines at a disadvantage.
Sirika
said that the administration will continue with the current policy of granting
duty waivers on imported aircraft and spare parts, so as to support the
industry. Further, government is well aware of financing difficulties faced by
Nigerian airlines in the leasing of aircraft. They have limited access to
capital even then at high interest rates of about 27 per cent currently. They
are also faced with inadequate numbers of aircraft, while they have high debt
profiles. The Minister said that the government intends to set up an aircraft
leasing company to assist these Nigerian airlines, to have better access to
leased aircraft for their operations.
Then,
it was time to highlight some achievements of the Ministry of Transportation in
the area of aviation, since last May(2015).The Minister noted with pride that
Nigeria passed the recent ICAO security audit of the country’s airports with
flying colours at a score of 96 per cent. The aviation industry similarly
passed the ICAO Universal Safety Oversight Audit of the country, reflecting the
enormous hardwork and expertise of Nigerian aviation authorities.
The
Buhari administration has been able to provide bomb containment vessels at the
Malam Aminu Kano International Airport Kano and at the Port Harcourt
International Airport. The administration has also installed solar-powered
field lighting systems at 10 airports round the country including Port Harcourt
, Sokoto, Akure and Enugu. In addition, Air traffic control tower operations at
the Malam Aminu Kano Airport have been automated, allowing for more efficient
services.
The
Minister of State rounded off by promising that the Nigerian aviation industry
would soon have a master plan in place, which he said will be integrated into
the National Integrated Infrastructure Masterplan, NIIMP. He said that the
development of Nigerian aviation is “a joint responsibility of the public and
private sectors.”
Above
all, Sirika is confident that the Nigerian aviation industry” can become
profitable, self-sustaining and beneficial to all stakeholders,” with our
concerted efforts and cooperation.
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