The wind of optimism is blowing across Nigeria’s aviation sector this year, triggered by expected improvement in project implementation, civil aviation regulation, passenger satisfaction and enhanced travel experience. But new policies may cause some upsets.
There are indications that 2024 may usher a new template in the aviation industry. For instance, new managers/administrators, who have taken the reins of leadership in various aviation agencies are already gearing up to churn out policies and programmes and also provide a new direction for the sector.
Sweeping changes, a re-jig of architecture in regulation, infrastructure provision and management are also expected to take centre stage in the sector considered strategic in the realisation of the President Bola Tinubu-led administration’s Renewed Hope Agenda.
As sign of things to come for the sector, the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, will this year, roll out the administration’s agenda for the air transport sector, zeroing in on how local carriers could get intervention from the Federal Government in addressing the challenge of access to foreign exchange using the official window of the Central Bank of Nigeria (CBN).
The air field lighting facilities at one of the runways at the international wing of the Lagos Airport is also expected to be completed. Indigenous carriers may also breathe a sigh of relief as the Federal Government, through the Minister, may cushion the effect of the high cost environment on their operations.
The possibility of local fuel refining by the Dangote Group may also create a window of opportunity for airlines to source aviation fuel at a competitive rate, thereby reducing their operating cost.
Also, experts and operators are upbeat on efforts by the government to fix sore points at airports especially inadequate/obsolete operational equipment as well as the pitiable state of air navigation facilities at some airports.
Accordingly, the industry may witness collaboration between the state governments and aviation agencies to put their aerodromes up to speed to carry out 24-hour flight operations. Benin Airport, in the Edo State capital, may come under focus as Governor Godwin Obaseki has called for the upgrade of facilities at the aerodrome where eight airlines are outdoing one another.
Besides intervention on the infrastructure front, experts are looking forward to consolidating foray by supranational entities in air transport facilities to open their corridors for economic growth and development.
Some of the states to watch out for include Ogun, Lagos, Cross River, Edo, Osun, Zamfara and Nassarawa. However, the template for grant approval for such projects by states may also come under focus as the industry regulator seeks more involvement in delivering such facilities.
Specifically, Ogun State will be in focus as it concludes certification and regulatory approvals to kick off commercial flights at its hybrid airport in Iperu Remo, in Ikene Local Government Area.
The Ogun Agro Cargo International Airport is expected to alter the dynamics of air transportation in the South West. For instance, the airport, given its strategic location, is expected to take pressure off the Lagos Airport.
As Ogun State Government fine-tunes the template for concession of the air transport infrastructure, investors, investigations have shown, are securing space to site aircraft repair, logistics and other related businesses.
In neighbouring Lagos State, 2024 will attract the attention of aviation players as the Centre of Excellence begins the construction of its airport in the Lekki/Epe corridor. This air transport infrastructure, targeted to be completed by 2025, will also alter the dynamics in air transportation in Nigeria.
Besides serving the flight needs of urbane passengers in the unique area of the country’s financial/economic capital, it will also service the freight/cargo/logistics needs of a concentration of industries in the Lekki/Epe corridor.
In the year, operators and experts are also looking forward to Nigeria deepening her aero-politicking as she sets out to resolve Bilateral Air Services Agreements (BASA) with the United Arab Emirates (UAE), a development that will see Emirates Airlines resume flight operations into Nigeria.
More Nigerian carriers, including Air Peace, United Nigeria Airlines and Ibom Air, are also tipped to set their footprints on international operations.
On the local front, experts are looking forward to the emergence of more carriers acquiring aircraft to crisscross the skyline for scheduled flight operations. The new carriers include NG Eagle Airlines, Bellagio Airlines, Benani Airlines, and North East Airlines.
Indigenous carriers are also gearing up to boost their capacity and increase their fleet of aircraft in the year. The Nation learnt that Overland Airways, Dana Air, Air Peace, United Nigeria Airlines, and Green Africa Airways will be front-liners in this push for expansion.
However, not a few industry watchers are desirous of the return of AZMAN Air, Medview Airlines, Chanchangi Airlines and IRS Airlines this year.
New trends are also expected in the aviation cargo value chain as the Federal Airports Authority (FAAN) unveils its Cargo Directorate. With a Cargo Village already under construction along the Mafoluku/Oshodi/Airport Road, Nigeria is projected to step up its participation in aviation cargo business.
The committee set up by the government many months ago has since submitted its roadmap to grow the air cargo value chain. With the Cargo Directorate established in FAAN, Nigeria could move from its fifth position to the first in Africa in terms of cargo volumes.
Speaking on the development, Group Managing Director and Chief Executive Officer of Nigerian Aviation Handling Company (NAHCO) Plc. Mr. Indranil Gupta, said 2024 holds huge potential for players in the air cargo value chain as players will invest hugely in operational infrastructure to bolster the growth and development of the agro-related export by air.
Towards this end, he said NAHCO alone has invested over N1billion in the construction of an export processing centre to drive the growth of air cargo.The export processing centre, which is located at the Lagos International Airport, is the pilot scheme of the many centres it intends to build in four other airports, including Abuja, Port Harcourt, Kano and Enugu.
The Federal Government is also targeting infrastructure upgrade to develop the air cargo segment of the industry as a brand new cargo terminal will be inaugurated at the Lagos International Airport. The facility is part of the intentional strategy to add value to Nigeria’s push to leverage growth the hugely revenue earning value chain.
Experts, however, say that a review of operational procedures for cargo operations in 2024 will pull more investors into the value chain to increase export of agro-allied produce with improvement in processing, packaging processes and certification to avoid rejection of such produce in destination markets.
Latching on to the potential in this value chain, some investors including airlines are exploring opportunities to deliver cargo airlines that will ferry goods within the country and around the West African sub-region.
The ground handling value chain is also one of the sub sectors to watch as developments unfold in the aviation sector.
The aviation industry regulator, Nigerian Civil Aviation Authority (NCAA) is said to be already fine-tuning it’s framework to birth some of these businesses expected to grow aviation in Nigeria.
However, there are fears that if the Federal Government makes good its plan to demolish hangars at the Lagos Airport to make way for the expansion of the apron for the new international terminal, the aviation industry may be up for a serious crisis.
The hangars that may be affected include Dominion, Evergreen Nigeria and Caverton Helicopters. Reliable sources hinted that the government is reaching out to managers of the facilities for relocation.
Another possible crisis point, The Nation learnt the Federal Government’s expected implementation of a six aircraft policy for local carriers, as well as fears that government may intensify its probe into the suspended Nigeria Air project.
KELVIN OSA OKUNBOR -THE NATION
