Sirika speaks on foreign airlines’ multiple entry into Nigeria

Despite the strong opposition of domestic airlines and many key players against  the loose multiple entry points being doled out to foreign airlines operating into the country, the Minister of Aviation, Senator Hadi Sirika, has attributed reasons for the multiple entry points to what he called the nature of the Bilateral Air Services Agreements (BASAs) existing between Nigeria and the home countries of the foreign airlines.

According to Sirika, apart from the fact that the multiple entry point policy allowed to foreign carriers to expand their business and grow their economy, the policy also generates revenue for Nigeria “as foreign airlines are able to land at different airports connecting different area of the country to foreign countries thereby promoting commercial trade, tourism and friendly relations.”

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Speaking at the Aviation Round Safety Initiative breakfast meeting in Lagos, the Minister acknowledged the fact that the issue of multiple entry points by foreign carriers into Nigeria had been an issue of contention by the Nigerian airlines and experts in the aviation sector for quite a while.

Though Sirika agreed that the grant of entry into more than two airports in Nigeria exposes foreign airlines to domestic routes and into the domestic markets of the domestic airlines has its negative implications such as allowing them to generate much needed revenue that would help in their growth and expands the business and growth of the economy of the foreign airlines, the Minister however said this puts pressure on their demand for forex as they need to repatriate funds which they require for their smooth operations.

“Technically, it creates capital flight from Nigeria, nevertheless, there are prospects for domestic airlines as they have opportunities for improved domestic markets by distributing international passengers for connection with these airlines. The grant of entry points to foreign airlines should also be such that they are giving multiple entries, to either Lagos or Abuja and not Lagos and Abuja, in addition to any other airport outside the geographical area of the first choice of Lagos and Abuja like Port Harcourt, Kano and Enugu. In this way they do not take over all the business on all the International Airports.”