FG’s revenue deductions putting pressure on aviation sector, United Nigeria Chairman

By Dickson Omobola

Chairman and Chief Executive Officer, CEO, of United Nigeria Airlines, Professor Obiora Okonkwo, Thursday, urged Federal Government to stop deducting from the revenue of aviation agencies, saying the practice places undue pressure on the sector.

Okonkwo disclosed that, due to disruptions in the Strait of Hormuz arising from the Iran conflict, the airline lost about N10 billion in some months as a result of increased operational costs driven by the rise in the price of aviation fuel, also known as Jet-A1.

Okonkwo, also the Spokesperson for the Airline Operators of Nigeria, AON, urged government to implement policies beneficial to airlines, saying the recent report by the International Air Transport Association, IATA, confirmed that Nigeria was one of the harshest environments for airlines to operate.

He spoke at the official unveiling of two United Nigeria Airlines’ Boeing 737-800NG aircraft named in honour of Obi of Onitsha, Igwe Nnaemeka Achebe, and the literary giant, late Professor Chinua Achebe, held in Lagos.

He said: “What we have seen in the last three months that has made big airlines in stable economies to collapse, we have overcome. There are months we lose between five, six and N10 billion, yet we have stayed the course.

“We are not happy that Nigeria is the most expensive place to operate for airlines, as said by IATA. We are hopeful that government will listen to appeals, we want reduction in the charges. Also, governement should leave aviation money in aviation agencies’ accounts because every revenue that goes to NCAA, it removes 70 per cent for other things.

“This puts pressure on the Nigerian Civil Aviation Authority, NCAA, Federal Airports Authority Nigeria, FAAN, and Nigerian Airspace Management Agency, NAMA. We will want the money to be left in the hands of regulators and service providers so that they will reduce their charges.

“Aviation is a catalyst for economic development and the core aspect of Nigeria economy is driven by aviation for instance, oil and gas, if there is no helicopter services, there won’t be oil exploration and its a critical aspect of Nigeria economy. The core aspect of the Nigerian economy is driven by aviation. In conclusion, when this is done, government can also provide a single-digit loan.”

On the aircraft unveiling, he said: “Today, we have one Achebe that introduced Africa to the whole world. He is from my home town. Wherever I go around the world, I tell them that Okonkwo in Things Fall Apart is my great-great-grandfather. We have another Achebe, who is a living legend and icon. We have here the Obi of Onitsha, Nnaemeka Achebe.”

In his remarks, Chairman of West Africa’s largest airline, Air Peace, Allen Onyema, also lamented the ease of doing business in Nigeria but said the operating environment had become better under the current administration.

He said bureaucratic bottlenecks built up over the years had hindered growth in the sector, and he urged government to continue to support indigenous investments.

Responding to the appeals, Minister of Aviation and Aerospace Development, Festus Keyamo, pledged to sustain policies that would help domestic airlines grow, saying such policies had contributed to the growth recorded by local carriers over the past two and a half years.

He said: “I have always insisted that there is no silver bullet to our problems in this country, whether in aviation or any other sector. Nobody can simply wave a magic wand and solve everything overnight.

“It has taken about two and a half years for us to begin reaping the benefits of the policy direction we set. We did not do it alone; we worked closely with industry players. We did not sit in isolation and decide what was best. Every policy was considered from the perspective of how it would help airlines such as Arik Air, Air Peace and United Nigeria Airlines grow.”

Meanwhile, the Obi of Onitsha expressed happiness in seeing his name and legacy flying alongside Chinua Achebe.

He said: “I am overwhelmed. I’m lost for words. It is a day of gratitude. I am here to celebrate the arrival of the two airplanes. I am overwhelmed that my name is inscribed on one of these aircraft, and it is also inscribed alongside Chinua Achebe. I have gained benefits sharing the same surname with Chinua Achebe.”

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