The Founder of United Nigeria Airlines (UNA), Prof. Obiora Okonkwo, has described the multiple charges imposed by government agencies in the aviation sector as a major burden on domestic airlines, saying it is hampering their growth and sustainability.
Speaking at an event in Abuja to mark UNA’s 4th anniversary, Okonkwo called on the federal government to urgently address the issue, emphasising that the industry’s survival depends on policy reforms that ease financial pressures on operators.
He also reiterated the need for a special financing window, allowing airlines to access funds at reduced interest rates, while advocating for the elimination of excessive charges that continue to strain airline operations.
He said, “One thing that will help the growth of this industry is for the government to develop a program that provides local operators access to single-digit loans. They need to cut down the charges imposed by various government agencies, which are about twenty in total. The margin of this business is very low, and meeting all those charges leaves us with nothing. We need more funds to develop, expand, and improve the working environment for our staff. The government must realise that access to credit is crucial for us because we are competing with operators who have access to loans at 3 to 5 percent. Aviation is a global village, and we can’t compete with them without similar financial support.”
However, he acknowledged the positive impact of President Bola Tinubu’s forex policy and the domestication of the Cape Town Convention, which he said has provided relief to the aviation sector.
“Before this policy, converting naira to foreign currencies to meet our obligations was a nightmare. We lost contracts and vendors because funds were stuck in naira, and we couldn’t access forex. Now, the situation has improved, and the government has cleared nearly a billion dollars in backlogged funds for foreign operators,” he said.
He also highlighted the benefits of the Cape Town Convention, which has helped reduce operational costs for domestic airlines. “These policies have opened new opportunities, improved our reputation in the international aviation industry, and strengthened relationships with global partners,” Okonkwo added.
Despite these advancements, Okonkwo identified passenger behaviour as a significant challenge for operators. He said that Nigerian airlines go above and beyond to satisfy passengers, often exceeding the standards of operators in other countries. “Our biggest challenge as operators is the passengers. Despite our efforts to serve and please them, they often become unruly for no reason, overemphasizing delays. Delays occur worldwide, and we need to work with the press to educate the traveling public about their rights and obligations.
Despite our efforts, passengers’ attitudes and behaviors put a lot of stress on operators, sometimes resulting in violence and equipment damage at airports,” he explained.
By Chinelo Obogo @TheSUN
