Call for airport concession, reforms grows as aviation growth slows

Aviation industry experts are hopeful that the new government will successfully resolve the national carrier crisis and the frequent strikes that plagued the sector during the previous administration under former President Muhammed Buhari, LILIAN UKAGWU writes

The Nigerian aviation industry was enmeshed in a lot of controversies during the eight years of former President Muhammedu Buhari. Top among the crises the sector battled during the immediate past administration was incessant industrial actions by aviation workers, which air travellers stranded numerous times

The controversy surrounding the national carrier, Nigeria Air continued till the last day of the administration, when the former Aviation Minister, Hadi Sirika, took delivery of the first plane of the country’s national carrier, despite subsisting court stay order. The minister promised that Nigeria Air would soon start local operations despite protests from local airline operators, who accused Sirika of contempt of court and alleged that the aircraft presented as one of the fleets of Niger Air actually belonged to Ethiopian Airlines, the proposed operator of the national carrier.

Stakeholders believe the government of President Bola Tinubu would usher in a new lease of life to the country’s aviation industry and enable it to harness its immense potential.

A former Commandant of the Murtala Mohammed International Airport, Lagos Group Captain John Ojikutu (retd.), urged the new administration to discard the idea of a national carrier in the country. Instead, he advised the government to establish at least two flag carriers: one regional and continental, and the other intercontinental from the existing carriers. According to him, this would ensure the sustainability and growth of the country’s aviation.

Ojikutu also urged the new government to concession all airports, with none remaining as commercial for government management. This move, he said, would remove the burden of management and maintenance from the government, except for the provision of recoverable intervention funds for capital projects.

He added that this approach would improve the efficiency and effectiveness of airport operations in Nigeria.

In February this year, a Federal High Court sitting in Lagos ordered that further action on the Federal Government’s planned concession of the Murtala Muhammed International Airport, Lagos,  and cargo terminals be stayed, pending the hearing and determination of a suit filed by a firm, Sifax Group of Companies Limited challenging the bidding process.

Sifax filed the suit against the former Attorney General of the Federation, Abubakar Malami; the Federal Government; former Minister of Aviation, Hadi Sirika; NAHCO Aviance Plc; Infrastructure Concession Regulatory Commission; TAV Airports Holding Company and GMR Airport Limited.

But the Federal Government in one of the Federal Executive Council meetings in May approved the concession of the Nnamdi Azikiwe International Airport, Abuja and the Mallam Aminu Kano International Airport, Kano, for 20 and 30 years, respectively.

Sirika noted that this was as the Federal Government looked to generate $797.4m (N368.8bn) as concession fees and taxes from the Concessionaire, Corporación America Airports.

“Put together it is about $800m. And this is equal to the amount of money that we borrowed to build those four airports,” he asserted.

In addition, Ojikutu who is also the Chief Executive Officer of Centurium Security, warned against the construction of an aerotropolis within the airport premises as it poses a risk to airport security and increased insecurity.

He went on to advise that the construction of an aerotropolis should be outside the main airport areas, at the boundaries between the airport service areas and the urban development areas.

He stressed that the aeronautical services for Cargo and General Aviation Terminals should be at the opposite end of the passenger terminal to ensure maximum security.

According to him, Maintenance Repair and Operations and aircraft leasing should be operated by the private sector and the government should be concerned with regulations.

“Government should not be in a business that it regulates,” he argued.

Also, the President of the Aircraft Owners and Pilots Association of Nigeria and former Chief Executive Officer of Associated Airlines, Alex Nwuba, called for the establishment of an aviation council to help bring about a revolution in the country’s aviation sector.

This council, according to Nwuba, will have the responsibility of creating a plan that will shape the future of the Nigerian aviation industry.

He noted that the aviation council if established will encourage the input of stakeholders in the industry and address the recurring industry pushback.

“It will create an opportunity for the industry to have a voice in policy formulation and propose a structure for the private/public airline interface.

Furthermore, the council will suggest the type, number, and scale of airports that will support and drive Nigeria’s aviation aspirations. This will include examining the future of Murtala Mohammed International Airport, Lagos concession, and all other options. The council will also produce models for optimising the numerous underutilised airports in the country, as well as propose new airline certification models that will spur airport activity,” he suggested.

According to Nwuba, it will also look at aeronautical and none aeronautical activities to spur economic activities at airports and turn them productive and profitable.

Meanwhile, the Assistant Secretary-General of the Aviation Roundtable, Olumide Ohunayo, expressed optimism about the new government but noted that there were critical issues that must be tackled immediately.

He stressed the importance of reviewing all appointments, directives, and board announcements made in the last two weeks before the new minister takes office to ensure maximum productivity.

He said, “I welcome the new government and look forward to some positivity, but it is coming at a time when a lot of debris is on the runway, which might affect the smooth takeoff of the flight of the new minister.”

He urged the incoming minister to conduct a staff audit of all government agencies to assess the strengths and weaknesses of the workforce, as well as the adherence to the federal character principle.

He stressed the importance of auditing government plans to determine their current state and identify improvements needed to meet the government’s objectives.

He also called on the new government to assess the feasibility of the road map project initiated by the previous administration before commencing with any new plans.

In conclusion, he advised the new government to take the necessary steps to address those issues to ensure a smooth takeoff and guarantee progress in the aviation industry.

“Failure to adhere to these recommendations could result in setting back the industry, thwarting efforts to turn things around and hindering the government’s progress.

“They need to look at that and make a review. As they start, they need to audit other plans of the agencies. This is needed to know what has happened, where they are and how they need to move. And carrying out the audit, they need to have the strength and number of staff employed in the last eight years compared that with the federal character principle of the government and see if all these are in place,” he counselled.

According to him, it is important for the new government to carry out staff audits of the agencies and directorates in the aviation ministry before taking off with its plans.

“Before they can take off with their plans, they need to do a lot of work on the road map project that was pushed by the last regime. If it does not address these issues, it might be difficult to start well,” Ohunayo reasoned.

Meanwhile, poor airport infrastructure, flight delays, hikes in aviation fuel popularly known as JetA1 and outrageous airfares have been largely blamed for the slow growth of the country’s aviation sector.  For years, travellers and investors have been demanding a viable solution to these challenges.