President Muhammadu Buhari and other leaders from all over the world have advocated better funding and synergy in addressing various infrastructural challenges stunting the growth of the aviation sector, especially in Africa.
Speaking in Abuja yesterday at the opening of the 3rd World Aviation Forum (WAF) hosted by the Ministry of State, Aviation, in conjunction with the International Civil Aviation Organisation (ICAO), President Buhari, who was represented by the Vice President, Prof. Yemi Osinbajo, said aviation remains paramount in growing the world’s economy and as such, deserves all the support it can get.
Osinbajo said Nigeria’s hosting of WAF provides a strong platform for aviation experts and top government functionaries to discuss ways of funding and taking the sector to the next level in consonance with the theme, “Financing the Development of Aviation Infrastructure”.
Osinbajo said: “Aviation is a global force. Current industry forecast says passenger, aircraft and cargo volume will double in few years time. Total economic impact of global aviation is high. It contributes about $2.7 trillion to global aviation Gross Domestic Product (GDP). Aviation provides millions of jobs across the globe. 1.1 million people are employed as aircraft manufacturers and spares.
“Aviation safety and security is another area we need to focus on. It’s a responsibility all stakeholders must ensure we invest in. We’re also concerned that in seeking improvement and growth, weaker countries are not behind just like ICAO has encapsulated. Access to capacity and capital by third world countries should be looked into,” Osinbajo explained.
The Vice President expressed worry that mere lip service has been paid to aviation financing in Africa, saying the time had come to change the narrative. He said most aviation facilities have been overstretched and needed urgent replacement, adding that the country was working on floating a private sector managed national carrier.
Buhari also revealed that ICAO has supported the establishment of an Aerospace University in Nigeria, which will help in growing the needed personnel to replenish the depleted manpower stock.
“We are also concessioning our airports for greater efficiency. But in seeking greater funding, we must ensure we de-risk private sector investment and reduce cost of funds,” he said.
In his remarks at the event, the Minister of State, Aviation, Hadi Sirika, said safety remained Federal Government’s top priority, revealing that Nigeria passed ICAO’s safety audit with a score of 96.4 per cent and above average in the ICAO Universal Oversight Safety Audit.
He also revealed that the Nigerian Integrated Aviation Master Plan projected that about N775 billion needed to be ploughed into the sector in the next 30 years. He said the infrastructural deficit in Nigeria’s aviation sector may be a worrisome development but it also presented a robust investment opportunity for private local and offshore investors.
“There are excellent investment opportunities in Nigeria. We have a growing and youthful population and we represent about 50 per cent of Africa’s aviation market. More so, the return on investment (RoI) is 24 per cent and that is about the highest in world.
“This is aside the fact that we moved up 24 places in World Bank’s ease of doing business rating. In an aviation sector roadmap, there are investment opportunities in safety, MRO, aviation leasing, agro allied terminals, among others.”
He said planned establishment of a national carrier was in top gear, insisting that it would be purely private sector funded and driven.
“Even if the Federal Government will own any equity, it would not be more than 5 per cent. Our transaction advisers have commenced work on our roadmap and the implementation will be done transparently,” he said.
