Sade Williams/Business a.m.
Financial experts have emphasised the need for the Nigerian aviation sector to leverage on available funding opportunities, both local and international in order to enable it compete favourably in the global space.
They also called for policy reforms that provide for transparency of the Nigerian Civil Aviation Authority (NCAA), in terms of regulation of airlines to achieve sustainability.
They observed that despite the huge potentials, the Nigerian aviation sector is bedeviled with challenges in the form of weak infrastructure, little to no investments and regulatory inconsistencies
They also observed that airlines in Nigeria suffer from the impact of foreign exchange scarcity and fluctuations, noting that international airlines continue to face blocked funds.
The experts spoke at the International Civil Aviation Conference on Capital Adequacy and International Competitiveness Nigeria Aviation Sector, which was held in Port Harcourt, Rivers State, recently.
The conference, which had its theme as “Enhancing Global Prominence and International Competitiveness of Nigerian Aviation Sector”, brought together critical stakeholders in the aviation sector such as airline operators, aviation security providers, aviation service providers, captains of industries, investors, professionals in the industry, and financial sector experts.
In his paper titled: “Adopting Global Capital Structure and Adequacy Model in Enhancing Nigeria Civil Aviation Industry’s Competitiveness”, Paul Alaje, advocated for single-digit loans for airline operators in Nigeria.
Alaje, who is the chief economist at SPM Professionals and a policy consultant, highlighted that operating domiciliary accounts and spending dollars in Nigeria is negatively affecting investments and sustainability of the Nigerian aviation sector.
Also speaking on “Global Imperatives of Financing Aviation Assets under a Weak Capital Structure: A Regulatory Dialogue”, Paul Ludick, highlighted that the National Insurance Commission (NAICOM), has a role to play in the restrictions on age of aircrafts, and allowing foreign aircrafts to operate locally as long as local AOC holders/owners are involved.
Ludick, who is an aviation finance expert of over 26 years experience, pointed out that some of the ways the Nigerian aviation sector can attract international partnership include, conducting route analysis to determine if the business is viable, ensure provision for maintenance reserve and downtime as not to impact cash flow reserves and as well, avoid rushing into buying or leasing aircrafts.
Earlier in his opening remarks, Festus Keyamo, the minister of aviation and aerospace development, represented by Chris Najomo, the acting director-general, NCAA, stressed the need to enhance Nigeria’s capacity in air travel and to lead the sector in Africa.
He informed of the federal government plans to establish smart airports across the country so as to enhance Nigeria’s competitiveness in the global aviation space.
In its goodwill message, the National Assembly, represented by Buhari Abdulfatai, chairman, Senate committee on aviation, and Idris Garba, chairman, House of Representative committee on aviation, respectively, admitted that there is concern in the sector, and expressed legislative support in tackling them.
