Nigerian airlines are urging the federal government to establish a “special funding” mechanism to support domestic airline operators in the country’s aviation sector.
The request was made by Roland Iyay, CEO of Top Brass Aviation Limited, on behalf of the Airline Operators of Nigeria (AON) during a visit to the Minister of Aviation and Aerospace Development, Festus Keyomo, in Abuja.
The call for a special funding window stems from the unique nature of the aviation industry and its increasing contribution to the nation’s gross domestic product (GDP).
Iyay emphasized the need for a special funding window with a single-digit interest rate that is easily accessible. He urged the government to create such a window for domestic airlines to acquire capital assets and explore support from renowned funding organizations like EXIM, EDC, and AFREXIM Bank.
Furthermore, Iyay called for the immediate revision of policies that hinder industry growth, the adoption of annual simulator recurrent checks for flight crews, and adherence to manufacturers’ recommended maintenance service intervals.
He appealed to the government to review all industry taxes and charges to determine their applicability and amount in alignment with the aviation parastatals’ cost recovery model. Iyay also emphasized the need to establish a dedicated support line for domestic airline operators to access foreign exchange through the Central Bank of Nigeria for both local and international transactions.
Other recommendations made by Iyay include the facilitation and liberalization of Jet-A1 procurement and distribution nationwide, prioritizing the modernization of passengers and handling equipment at major airports, and the installation of bird hazard management equipment and FOD (Foreign Object Debris) programs at all airports for enhanced safety and reduced aircraft damage.
He also suggested embracing the Public-Private Partnership (PPP) model with potential investors to establish and operate local Maintenance, Repair, and Overhaul (MRO) facilities, along with providing special incentives to encourage increased investments in the aviation sector.
