Tribune OnlineTribune OnlineTribune Online
  • Home
  • News
  • Columns
  • Editorial
  • VIDEOS
  • Entertainment
  • Politics
  • Health
  • Opinions
  • SPORTING TRIBUNE
Reading: Saving our aviation industry from extinction
Share
Notification Show More
Font ResizerAa
Tribune OnlineTribune Online
Font ResizerAa
  • Home
  • News
  • Columns
  • Editorial
  • VIDEOS
  • Entertainment
  • Politics
  • Health
  • Opinions
  • SPORTING TRIBUNE
  • About Us
  • Contact us
  • Disclaimer
  • Privacy Policy
  • Advertise
Have an existing account? Sign In
Follow US
© 2026 African Newspapers of Nigeria Plc. All Rights Reserved. | Disclaimer | Privacy Policy | Editorial Policy | Corrections Policy | Terms & Conditions
Home » Saving our aviation industry from extinction
Opinions

Saving our aviation industry from extinction

Ifedayo Ogunyemi
November 26, 2020
Share
NCAA airlines. NCAA may shut down nation's airspace, FCCPC, NCAA collaborate to address high airfare, consumers negligence in aviation sector, Xejet joins Nigeria’s domestic airline business, Airworthiness needs urgent, Key players describe Nigerian, NCAA clears Bayelsa Airport NCAA exposes the dangerous, functional AOC, NCAA DG, Airlines, NCAA, COVID-19, PCR, FG approves restructuring, international flights, advisory circular, pilots, airlinesNCAA , Bad weather, NCAA, flight, airports, operaions, aviation industry
Add as a preferred source

THE just concluded public hearing on the amendment Bills for the review of  some aspects the of civil aviation Acts has brought to the fore the impending crisis in the aviation industry which require urgent attention. The industry is in dire need of urgent intervention to save it from imminent collapse. There is no gain saying that aviation is the bedrock of the national economy. It is important to note that the aviation industry is regarded as a strategic industry, not only for its potential for economic growth but also for its crucial role in national development and regional integration The most important contribution aviation makes to national economy is through its impact on the performance of other sectors and as a facilitator of their growth. The industry is the tonic on which many other sectors depend on. Unfortunately, this vital sector that acts as stimulus to the rest of the sectors of the economy is facing extinction, the consequence of which will be very detrimental to the overall economy of the country if not squarely addressed immediately. In 2019, the contribution of the aviation industry to the nation’s gross domestic product,(GDP) was put at N198.62 billions according to the release from the National Bureau for Statistics, (NBS). In fact aviation was adjudged the fastest growing sector for 2019 despite the harsh operating environment. This was projected to be surpassed in 2020 but for the advent of corona virus pandemic which dealt a devastating blow on the industry.

Before the outbreak of COVID-19, the industry, especially the airlines were already crying for intervention from the government to help them surmount the various challenges confronting them. The  public hearing we held for the 6 aviation Bills between November 17 and 19 provided the ample opportunity for the indigenous airline operators to voice out their problems which we believe should not be treated with levity if we must move the industry and the economy forward. The operators listed the challenges which they claimed have been crippling their operations as follows: non-implementation of the Executive Order on zero customs duty and zero vat on importation of commercial aircraft and aircraft spare parts, non implementation of the executive order on the removal of vat from air transportation; inability to Access Forex, inadequate night landing facilities in most of the airports thereby affecting the operating flight hours daily.  As parliament, we are going to look into these demands and more especially to find out why the Nigeria Custom Service would not respect the President’s Executive Order on duty exemption and other palliatives meant to lighten the burdens of the airlines. The multiple entries for foreign airlines is equally an important concern raised by the operators which must be looked into.

If developed countries could give bailouts in billions of dollars to airlines to cushion the impact of corona virus with all incentives at their disposal you can understand what our operators are going through without help. America, Canada, Brazil, Rwanda, Senegal, India, China , Korea, United Kingdom and several European countries all injected funds into the sector to support their local airlines and the service providers because they understand the importance of aviation in their national economies. The International Civil Aviation Organisation, (ICAO) the global aviation watchdog had in the wake of the pandemic canvassed for continued financial and regulatory support, particularly financial relief that does not increase industry debt levels through direct cash injections, credit or loans and deferrals or discounts on user charges to support airlines over the restart and recovery period.  However, only the following African countries; Rwanda, Senegal, Côte d’Ivoire, Burkina Faso and recently Cape Verde have responded adequately to this plea said ICAO Regional Director, Mr Mohammad All Bakri in a recent publication of the International Air Transport Association, (IATA) journal.

Their actions according to ICAO have helped save thousands of jobs and will enable some airlines to restart and support the wider economies they serve in those countries.  The IATA Regional Vice President for Africa and Middle East, Mr. Barry Kasambo, in the same publication also acknowledged that the situation of airlines in Africa are worsening and urged that the  measures are essential to minimize job losses and ensure that connectivity can be restored within the Continent. “We urge African governments and the development institutions which have committed funding to provide it urgently in a structure that does not weaken already stressed airline balance sheets, before it is too late,” he said .

Here in Nigeria, our indigenous airlines are faced with enormous challenges like high interest rate on loans, lack of maintenance facilities, high insurance premium, multiple taxation, disadvantageous policies and high cost of jet-A1, (aviation fuel) among others which make it near impossible for them, (local airlines,) to break even. We are not just talking abut airlines alone, the service providers, the Federal Airports Authority of Nigeria, (FAAN) the Nigerian Airspace Management Agency,  (NAMA!) and the Nigerian Civil Aviation Authority, (NCAA) and the rest are also having their own challenges. They need bailout funds to function optimally.  The Aviation sector requires huge capital for infrastructural development, the remittances of 25 per cent of their internally generated revenues, (IGRs) should be retained for the next ten years to help the agencies upgrade their facilities.  The Federal Governments N4 billion bailout to the airlines and some palliatives to the agencies( not yet released) is too small. The Aarlines need at least N50bn bailout funds to cushion the coronavirus effects.  We are requesting that other mechanisms should be introduced as a support to avert the collapse of the Aviation sector.   We intend to interact with the leadership of the National Assembly and the Ministry of Aviation on all the concerns raised by the operators and other sundry issues confronting the industry to see how we can address them to avert the collapse of the industry.

It is important that the Federal Government urgently come to the aid of the operators by addressing these needs in the overall interest of the national economy and  to relieve the Airline operators’ of frustration and as well avert their threat of shutting down their operations due to lack of funds and hash operating environment.

  • Hon. Nnaji is the Chairman, House of Representatives Committee on Aviation

YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE

ICYMI: Nigeria Back Into Recession, Worst Since 1987

Nigeria is back into a recession. This time, it is the worst the country has experienced since 1987…

ICYMI: Why We Can’t Call Off Strike Now –ASUU 

It is still uncertain whether the ongoing strike by the Academic Staff Union of Universities (ASUU) will end soon as the president of the union, Professor ‘Biodun Ogunyemi has said there are certain steps to be taken to reach a final conclusion on the issue…


WATCH TOP VIDEOS FROM NIGERIAN TRIBUNE TV

  • Back to School, Back to Business A Fresh Start

  • Relationship Hangout: Public vs Private Proposals – Which Truly Wins in Love?

  • “No” Is a Complete Sentence: Why You Should Stop Feeling Guilty

  • Relationship Hangout: Friendship Talk 2025 – How to Be a Good Friend & Big Questions on Friendship

  • Police Overpower Armed Robbers in Ibadan After Fierce Struggle


    Get real-time news updates from Tribune Online! Follow us on WhatsApp for breaking news, exclusive stories and interviews, and much more.
    Join our WhatsApp Channel now


ByIfedayo Ogunyemi
Ifedayo O. Ogunyemi‎ Senior Reporter, Nigerian Tribune [email protected]
Previous Article Nigeria confirms 198 cases COVID-19: Nigeria confirms 198 new cases, total now 66,805
Next Article Group campaign Illegal migration in Nigeria: A solution approach

Most Read

  • JAMB resolves 50,370 complaints in three months, begins preparations for 2027 UTME
    JAMB resolves 50,370 complaints in three months, begins preparations for 2027 UTME
  • 2027 UTME: JAMB lists six things candidates must do before registration
    2027 UTME: JAMB lists six things candidates must do before registration
  • BOUESTI presents 36 academic programmes to NUC for accreditation
    BOUESTI presents 36 academic programmes to NUC for accreditation
  • Ex-LASU VC, Prof Olatunji-Bello, named Redeemer’s varsity Pro-Chancellor
    Ex-LASU VC, Prof Olatunji-Bello, named Redeemer’s varsity Pro-Chancellor
  • Welcome to your new home, FUTA VC tells fresh students
    Welcome to your new home, FUTA VC tells fresh students
  • FUL secures N3bn TETFund grant for AI, others
    FUL secures N3bn TETFund grant for AI, others
  • Tinubu to Nigerians: We’ll provide reliable electricity if re-elected
    Tinubu to Nigerians: We’ll provide reliable electricity if re-elected
  • Opay to customers: How to check eligibility for FG’s N50,000 cash support
    Opay to customers: How to check eligibility for FG’s N50,000 cash support
  • Lest the courts kill our democracy
    Lest the courts kill our democracy
  • Billionaire senator and lazy, hungry Nigerians
    Billionaire senator and lazy, hungry Nigerians

Frontpage Today

Subscribe to e-Paper

E-Vending, e paper, pdf, e-paper, Tribune
QUICK LINKS

About Us
Advertise with Us
Contact Us
Privacy Policy
Disclaimer
Editorial Policy
Corrections Policy
Terms & Conditions
COLUMNS

Aplomb
Ask The Doctor
Autoclinic With The Mechanic
Awo's Thought
Empowered For Life
Festus Adebayo's Flickers
Gibbers
Intimacy
Language & Style
Leadership & Management
Lynx Eye
Monday Lines
Mum & Child
Natural Health
Notes from Atlanta with Farooq Kperogi
On The Lord's Day
Your Life Counts

ENTERTAINMENT

Entertainment

RELIGION

Tribune Church
Church News
Muslim Sermon
Eye of Islam
Islamic News

EDITORIAL

Editorial
Opinion
Letters
News Extra

BUSINESS

Capital Market
Money Market

REGIONS

Niger Delta
Arewa
MORE

Sexuality & Health
Special Report
Sports
Tourism
Travelpulse & MICE
Weekend Lagos
Book Review
Education
Event Digest
Crime & Court
Ecoscope
Energy
Maritime
Aviation
Brands & Marketing
Agriculture
Info Tech
Labour
Leadership & Management
Arts & Culture
Arts & Reviews
Politics
Health News
© 2026 African Newspapers of Nigeria Plc. All Rights Reserved. | Disclaimer | Privacy Policy | Editorial Policy | Corrections Policy | Terms & Conditions

Add Tribune Online to your Homescreen!

Add
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?