In a recent interview with Arise TV, the Minister of Aviation and Aerospace Development, Festus Keyamo, shared his insights on the future of Nigeria’s air transport sector. He highlighted the Bola Tinubu administration’s dedication to enhancing the industry, with a focus on making aircraft leasing more accessible and reducing insurance premiums for Nigerian airlines. Keyamo believes these initiatives will enable airlines to expand their fleets, ultimately increasing capacity to meet rising demand, lowering airfares, and minimizing flight cancellations and delays.
Keyamo also addressed the suspended Nigeria Air project, which was developed in collaboration with Ethiopian Airlines, labeling it “parasitic.” He mentioned that Nigeria has made significant strides in improving its global compliance rating—boosting it from 49 to 70.5 under the Cape Town Convention. He credited the Aviation Working Group (AWG) for recognizing Nigeria’s advancements toward full compliance, especially after the Federal Government signed a Practice Direction on dry-leasing aircraft.
When questioned about the recent improvement in Nigeria’s compliance rating, Keyamo expressed optimism for further progress once the Irrevocable Deregistration and Export Request Authorisation (IDERA) is signed. This vital document would allow lessors to swiftly deregister and reclaim aircraft from Nigerian operators, with recovery potentially achievable within five days should any disputes arise. He confidently stated that once finalized, this agreement could elevate Nigeria’s rating to above 80.
Addressing a significant obstacle facing Nigerian airlines—capacity constraints—Keyamo pointed out that the lack of operational aircraft is limiting competition against international carriers like Air France and Lufthansa. “We are not fully utilizing our reciprocity because we don’t have enough operating aircraft,” he remarked.
On aircraft maintenance, Keyamo revealed that the government is exploring private investment in Maintenance, Repair, and Overhaul (MRO) facilities through a Public-Private Partnership (PPP) model. He mentioned a nearly finished maintenance facility in Akwa Ibom designed for narrow-body aircraft, which has garnered support from Airbus. He emphasized the potential for establishing a major MRO hub in Nigeria that could cater to a vast market across West and Central Africa, helping to alleviate delays faced by domestic carriers that currently send their aircraft abroad for maintenance.
The Minister defended the Tinubu administration’s aviation policies, which aim to protect and empower local airlines. He also noted a collaboration between the Central Bank of Nigeria and the Ministry of Aviation to address the foreign exchange challenges that airlines face. Recently, the Central Bank took steps to release funds previously trapped in Nigeria to foreign carriers, marking a resolution to a long-standing problem.
During the discussion about the Nigeria Air project, Keyamo voiced concerns regarding the lack of transparency in the planning process, particularly the potential dominance of Ethiopian Airlines, which he feared could favor their interests over Nigeria’s. He cautioned that the project would have posed significant risks to domestic carriers.
“We missed out on foreign direct investment with the suspension of the Nigeria Air deal, but they weren’t actually bringing any money into Nigeria,” he stated, highlighting that the arrangement would have cost Nigeria around $400 million for wet leases.
Concluding his remarks, Keyamo expressed that under the new administration, there will be a notable policy shift aimed at bolstering local capacity in the aviation industry to meet international standards. Regarding airport concessions, he reassured that workers would be involved in the process, emphasizing transparency and the implementation of best airport management practices through global partnerships.