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Reform and technological imperatives for long-term aviation growth…

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Africa ( Commonwealth Union) _ Recently, during the National Aviation Conference (FNAC) held in Abuja, there was a candid discussion on the challenges, prospects, and opportunities in the air transport sector. Both regulators and operators agreed on the urgent need for comprehensive reforms to eliminate bureaucratic obstacles and promote growth.

According to the International Air Transport Association (IATA), world airlines anticipate a full recovery by 2024, with an estimated annual passenger volume of four billion, similar to pre-COVID-19 levels. The removal of travel restrictions has significantly improved the industry’s outlook.

However, the growth forecast for airlines in Nigeria and other African countries is expected to be slower. Passenger numbers to, from, and within Africa are projected to recover gradually, reaching 76% of 2019 levels in 2022 and surpassing pre-crisis levels only in 2025. This slower growth is not due to a lack of potential, as Nigeria and other African countries possess significant opportunities. Rather, it is attributed to internal challenges that are impeding the growth of aviation, affecting economic prosperity.

During the Federal Airports Authority of Nigeria’s (FAAN) National Aviation Conference (FNAC), stakeholders emphasized that African aviation holds promising prospects, provided it is accompanied by policy reforms that prioritize it as a core business. They stressed the importance of adopting emerging technologies for enhanced efficiency and fostering a growth-oriented mindset among all parties involved.

Presenters and panelists at the conference, which focused on the sustainability of the aviation industry in Nigeria, agreed that Nigeria’s long-standing reputation as the “potential giant” in Africa and among nations has been gradually fading. With a population of over 200 million people, Nigeria should, by now, be among the top ten aviation countries globally.

Experts highlighted that for an airport to be sustainable, it should generate around 60% of its revenue from non-aeronautical sources and 30% to 40% from aeronautical activities. Moreover, airports must attract sufficient traffic for viability and reinvest their earnings into sector development—a contrast to the current situation in Nigeria.

Emmanuel Chaves, President of Airport Council International (ACI) Africa, emphasized that many airports are operating at a loss due to insufficient passenger numbers. He suggested that African aviation should embrace modern trends and technologies to promote sustainable growth. To address environmental concerns, Chaves recommended investing in sustainable electricity sources like solar and renewable energy, which would significantly reduce pollution caused by the aviation sector.

Captain Musa Nuhu, Director-General of Civil Aviation (DGCA), highlighted the minimal contribution of the African continent and global aviation industry to man-made global warming and greenhouse gas emissions. However, Africa is already experiencing the adverse impacts of climate change and is likely to face further consequences, including desertification, flooding, and climate-induced conflicts. To sustain the aviation industry’s growth in Nigeria, Nuhu emphasized the importance of embracing the Single African Air Transport Market (SAATM) and highlighted its positive economic impacts, such as job creation and consumer benefits.

Former Managing Director of FAAN, Captain Rabiu Yadudu, attributed the slow growth of the aviation sector in Nigeria to government policies. He expressed concern over the mandatory 40% contribution of agencies’ revenues to the federation account, which hinders their growth. Yadudu emphasized the need for airport operators to diversify their income sources, secure adequate funding from the government for infrastructure development, maintain high service quality, and implement effective corporate governance practices. He urged the government to create policies that encourage and support the aviation industry as a crucial economic enabler and catalyst.

Captain Sheu Iyal, Managing Director of Afri-Air International Limited, expressed concern over the compulsory 40% contribution of aviation agencies’ revenues to the federation account, as it negatively impacts their performance. He emphasized that aviation should be considered a component

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