How absence of maintenance hangar made Nigeria lose $2.5billion in 2021 ― FAAN MD

The absence of functional aircraft maintenance facilities known in the aviation circle as Maintenance Repair Overhaul (MRO) has cost Nigeria a whopping $2.5 bil­lion in 2021.

The money was lost in MRO investments to neighbouring countries of Ethiopia, Morocco, Egypt, United Arab Emirates, South Africa, and other nations with advanced maintenance facilities where Nigerian airlines and others from around the region often take their aircraft to for maintenance.

Disclosing this on Tuesday was the Managing Director of the Federal Airports Authority of Nigeria (FAAN), Captain Rabiu Yadudu at the ongoing first-ever National Aviation Conference holding in Abuja with the theme, “Advancing the frontiers of possibilities for safe, secured profitable air transport”.

According to Yadudu, having such investments here in Nigeria would have provided more employment opportu­nities for Nigerians, generate more revenue and enhance the training of technical personnel for the main­tenance of aircraft.

Nigerian airlines spend about $2 billion overseas on aircraft maintenance, an amount which must have increased to $3 billion following the increase in their fleet size which the FAAN MD described as capital flight.

Yadudu cited the instability of the Naira in relation to its value against other major currencies to be responsible for a protracted problem that is getting worse daily as the country’s economy nosedived.

Not having major Maintenance, Repair, and Overhaul (MRO) facility hangar in Nigeria Yadudu insisted had forced the airlines to be at the mercy of such facilities in other parts of the world.

Conducting maintenance overseas has three major disadvantages which he categorized as relatively costly due to forex, and two, delays which give rise to logistics challenges with sourcing foreign exchange becoming extremely difficult for airlines.

Although, the Nigerian Civil Aviation Authority (NCAA) had licensed a few firms like Aero Contractors and 7Star Hangar to carry out aircraft maintenance jobs but still did not have the capacity to handle more than three or four aircraft in a year.

This situation has compelled many Nigerian airline operators to ferry their aircraft overseas at huge costs because of the inability to wait for slots and the under-capacity of the maintenance for wide-body aircraft repairs.

While stating that much of the continent’s MRO business estimated at $3.2 billion was leaving the region, Yadudu revealed that the out of the 2019 air transport MRO market put at $87B; Africa represents~four per cent ($3.2B); the Asia Pacific 33 per cent; North America 23 per cent; Europe 25 per cent ($22B); the Middle East nine per cent; Latin America six per cent.

The interlink and value chain between the air transport, tourism, and hospitality industry for economic growth cannot be over-emphasized. Today, the Eiffel Tower in Paris, London bridge, Dubai Mall, Burj Khalifa, the British Museum in the United Kingdom, e.t.c. have all been consciously developed into major tourist attractions that drive passenger traffic to those destinations and by implication attract businesses and generate employment for the locals and foreigners alike.

The national aviation conference which will end on Friday will also feature trade and investment sessions, where opportunities for investments at our various airports will be showcased. Investors will also have first-hand information on how to partner with FAAN in mutually beneficial business arrangements.

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How absence of maintenance hangar made Nigeria lose $2.5billion in 2021 ― FAAN MD

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How absence of maintenance hangar made Nigeria lose $2.5billion in 2021 ― FAAN MD