The importance of having an Aviation Development Bank (ADB) has once again received public focus with the belief that the establishment of such a bank would serve as a game changer for the sector.
A former Rector of the Nigerian College of Aviation Technology (NCAT), Zaria, Captain Samuel Caulcrick, who made the declaration during an interview equally emphasized the need for the government to urgently review its economic model while balancing the adaptations of Keynesian economic philosophy with neo-liberalism.
According to Caulcrick, the only way that the government can compete with its counterparts across the globe is by reviewing its present aviation policy.
Calucrick, who is also the Chief Executive Officer (CEO) of Merchant Express Cargo Airlines, explained that Keynesian economic policies, which stressed the role of government in stabilising the economy and promoting growth, had been instrumental in driving China and other Middle Eastern countries’ economic successes over the years.
To him, if Nigeria was to dream of taking its place in the global aviation market, a brilliant idea was to model the country’s aviation sector after the China Development Bank.
Citing how China and the Middle East had demonstrated how government support could foster competitiveness and drive economic growth, particularly in a developing economy like Nigeria, the former Rector identified China’s Electric Vehicle (EV), semiconductor industry, Middle East’s Emirates Airlines, Qatar Airways and Ethiopian Airlines as examples of state-backed financing and subsidies, which had enabled China and the Middle East to thrive through the provision of low-cost capital and investment in modern infrastructure.
According to Caulcrick, key objectives of establishing an Aviation Development Bank included: aircraft leasing, which would provide financing options for airlines to lease aircraft, reduce the burden of upfront purchases and enabling them to focus on operations, opportunity that it would also support the creation of Maintenance, Repair and Overhaul (MRO) facility, which would facilitate the establishment of local MRO, create jobs and reduce reliance on foreign maintenance services.
Equally, he noted that the creation of ADB would further streamline aircraft types by encouraging airline operators to focus on a limited number of aircraft types, reducing maintenance and operational costs.
Insisting that the Aviation bank would also lead to financing aviation infrastructure by providing backing for airport development, air traffic control systems and other critical infrastructure, Caulcrick further remarked: “Benefits of ADB include increased Accessibility: improve air travel accessibility and affordability for Nigerians. Job Creation – generate employment opportunities in the aviation sector, including MRO, aircraft manufacturing, and airline operations. Economic Growth – contribute to Nigeria’s economic growth by increasing trade, tourism, and business travel.
Reduced Capital Flight – minimise capital flight by reducing reliance on foreign aircraft leasing and maintenance services.”
He urged the government to set up the ADB as a specialised financial institution and provide initial capitalisation through funding, private sector investment or international partnerships, adding that the bank could collaborate with international aviation organisations, aircraft manufacturers and financial institutions to access expertise, funding, and technology.
His words: “By establishing an Aviation Development Bank, Nigeria can create a robust and sustainable aviation sector that drives economic growth, job creation, and increased accessibility,” he added.
READ ALSO: NAMA critical to air safety in Nigeria — Aviation Perm Sec
and then