AfriqueCAN
NIGERIA must invest in the aviation eco-system and compete with the international aviation sector for the country to move up the global value chain, a former Minister has said.
Ngozi Okonjo-Iweala, Director-General of the World Trade Organization – WTO, made this comment on Wednesday while advising the Federal Government to invest in the upgrading and maintenance of the country’s airport facilities.
“This means acquisition of new aircraft and investment in airport infrastructure, which should be complemented by a strong maintenance culture”, she said at the Aircraft Acquisition and Investment Summit held in Lagos.
Okonjo-Iweala further advised the Tinubu administration to call for private partnerships.
“The good news is that the burden need not be borne by the government alone. This calls for public-government partnerships. Private financing needs to be mobilised for modernisation of airport infrastructure.”
She also called for a review of rising fuel, taxes, and airport charges, which, according to her, could lead to higher operating costs for airlines.
“The full costs need to be reexamined – fuel costs, airport taxes, levies and charges”, she said, adding that an enabling business environment needs to be created to boost investors’ confidence.
“The model is straightforward – the government provides the enabling framework, the regulatory certainty, and the long-term concession structures that give the private sector the confidence to commit.
“The private sector brings capital, operational expertise, and the discipline of commercial incentives.
“Once these structures are set, there is no reason it will not bring commercial growth as experienced in other parts of the world.”
She also advised the government to maintain a competitive and fair tax regime, advance market liberalisation by opening roads to other nations in a reciprocal manner, and work with other regional governments to remove bilateral restrictions that tend to limit where African airlines can fly.
“Most importantly, the government must see the aviation sector as a strategic economic enabler rather than a revenue source that needs to be extracted”, she added.
Although she said that Nigeria’s safety records have improved in the last 20 years, the former Minister of Finance called for improvement, adding that existing airlines need to upgrade and increase their air fleets.
“Nigerian air transportation has grown in recent years with the acquisition of private airlines, along with new airports and related infrastructure.
“The safety records have also improved in the last 20 years, but there is still a far distance to cover. Existing airlines need to upgrade and increase their existing air fleets”, she said, adding that the aviation sector can contribute more to the economy if the structural constraints are removed.
