Quorum Aviation CEO stresses importance of PPP to virile aviation infrastructure

The Chief Executive Officer (CEO), Ouorum Aviation, Mr Abiola Lawal, has described  the importance of Public Private Partnership (PPP) as a sine qua non factor to meeting up with over N1.5 trillion projected aviation infrastructure deficit annually in Nigeria.

Speaking at the Aviation Safety Round Table Initiative (ART) Q3 Breakfast Business meeting titled: ‘Funding Aviation Infrastructure Deficit in Nigeria Using Private Capital: Challenges and Prospects’ held in Lagos the Quorum Aviation CEO recommended improved access to capital at low single digit rates to help boost investment.

Lawal attributed reason for canvassing Public Private Partnership arrangement to its inherent huge opportunities and benefits for the private sector which he however said must be done under the right conditions.

Describing the Return on Investment (ROI) with regards to private sector funding infrastructure as low with the attending risks of such investments high, Lawal canvassed 2.5 per cent single digit debt for a long term tenure of between 10 to 20 years as opposed to what currently entails which is a high cost of capital with interest rates going at 20 per cent with banks and at very short tenures, he termed too short for infrastructure funding which ought to be long term.

He lamented how, while Nigeria was celebrating 9% interest rate on the intervention funds, other countries were giving at almost 0% interest rate

Apart from the economic and financial challenges,the Quorum CEO  identified legal frameworks as well as politics and policies as major challenges that negate the conditions for investment stressing that once the micro tenets of these challenges were resolved, Nigeria could start bridging the aviation infrastructure gap.

Citing how inconsistent legal framework, inability to enforce contractual agreements as well as extremely long cycles to put contracts together had remained a challenge, Lawal referred to the Asaba Airport Concession Consortium that it took about five (5) years for the state government to put together.

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