Nigeria Needs $50bn to Grow Aviation Sector

The federal government has said the Aviation sector needs about $50 billion to develop the airports to be able to airlift about 110 million passengers by 2043.

It is estimated that Nigeria's population would rise to about 230 million in 2043, with passenger movement predicted at 75 per cent of the nation's population.

Minister of Aviation, Osita Chidoka who made the projection ‎said with appropriate policies, programme initiatives and incentives the set objectives would be realised.

Chidoka said the industry required economic stimulus, which would involve a package of financial incentives and support across the aviation value chain.

According to him, the key focus areas are aerodrome infrastructure and operation, airline operation safety and aviation allied services.

The minister said airspace management, manpower development also needed attention and these could be achieved through national aviation policy.

Chidoka explained that the industry needed stimulus package because many successful airlines in the world today were supported by their host countries and that was the only way they could succeed to become global players.

For example, he said the US paid $40billion to Delta Air Lines in subsidies, Qatar gave Qatar Airways $8.4 billion loans, $6.8 billion in subsidies while it received $616 million in subsidies.

He admitted that the Nigerian aviation industry is under performing, disclosing that out of the nation's N80.3 trillion ($509.9 billion) GDP aviation contributes only $0.7 billion.

The minister attributed part of the underdevelopment of the industry to untapped regional opportunities, under financed domestic airlines, weak corporate governance, under utilised Bilateral Air Service Agreement (BASA) agreement and poor incentives for private sector participation.

These he said, had given rise to weak institutions, inability of the sector to significantly contribute to GDP, loss of economic opportunity and low capacity to take advantage of the growing market potential.

Chidoka observed that over the years, the industry recorded poor performance, huge indebtedness, significant gaps in flag capacity and underserved regional market.

Making a comparison, Chidoka noted that Dubai aviation sector contributes 27 per cent of the UAE GDP, South Africa 2.1 per cent but Nigeria contributes only 0.4 per cent. (Thisdaylive)