Aviation Operators Need Recovery Plans – NSACC

The Nigeria-South Africa Chamber of Commerce (NSACC) and other professionals in the country have mentioned the scarcity of foreign exchange, rising inflation and poor infrastructure as some of the factors militating against the growth of the Nigerian aviation industry.

Professionals have called on the Federal Government to meet the challenges head on by introducing stimulus packages to help airlines and other industry organizations weather the impact of the Covid-19 pandemic.

Professionals said so in Lagos at the October breakfast, hosted by NSACC and sponsored by Phillips Consulting to celebrate its 30th anniversary.

In his presentation, the President, from NSACC, Mr. Osayaba Giwa-Osagiesaid that the current unpleasant situations in the sector are slowing down its growth.

Give a boost: He called on the government to encourage operators through stimulus packages to address the above-mentioned challenges and advised industry stakeholders to systematically engage the government to seek a way out of the impasse. He said:

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  • “The current economic situation, the scarcity of foreign exchange, the rise in inflation and the lack of infrastructure are factors that afflict the sector. To chart a new direction for the sector, all stakeholders have a role to play.
  • “Additionally, stakeholders should constantly engage the government on ways to reposition the sector to be profitable and competitive. Air operators should adopt creative initiatives to help manage costs and increase efficiency.

The aviation sector is important: Giwa-Osagie added that the aviation industry was a real tool for the country’s revenue generation and economic development, saying its importance could not be overemphasized.

  • He cited reports from the National Bureau of Statistics (NBS), which stated that the aviation industry in Nigeria contributed at least N117.3 billion to the country’s economy in the first half of 2022, while the sector also raised 84.7 million and 32.6 billion in the first and second quarters,” to Nigeria’s Gross Domestic Product (GDP) respectively.
  • “The Nigerian aviation industry has grown in size, capital, investment, safety and quality management system. The sector is fundamental to facilitating trade, investment and tourism,” he added.

Creativity in access to capital: Also speaking, Mr. George Uriesi, Chief Operating Officer (COO) of Ibom Air, advised domestic airline operators to be creative in accessing capital.

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  • Uriesi, who was also the guest speaker on the occasion, stressed that operators need a level playing field to thrive. Speaking on the topic, “Aviation in Nigeria: What Next?” Uriesi said there was a need for industry players to adopt good corporate governance in their day-to-day operations.

Gain recovery: The head of research and intelligence at Phillips Consulting Limited, Samuel Bamidele, said in his address that the Nigerian aviation industry was growing and recovering faster from the pandemic than global projections.

  • Bamidele pointed out that although there are several pressure points or challenges faced by operators in the sector, Philips Consulting expects the sector to continue on a positive trajectory.
  • “One of the strengths of Phillips Consulting’s aviation survey report is low industry capacity, which we infer from the challenges passengers face in obtaining urgent tickets and increased costs for reservations. late.
  • “Furthermore, we found that 16.24% of survey respondents prefer no airline, indicating that existing competition and potential new entrants are strong challengers for market share,” said Bamidele.

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