Festus Keyamo, Minister of Aviation and Aerospace Development, has debunked misconceptions about the alleged hazards that lessors have placed on Nigerian airlines by highlighting their dependability and dedication to global standards.
Keyamo noted that several Nigerian airlines run their fleets under Aircraft, Crew, Maintenance, and Insurance (ACMI) agreements without defaulting at the Aviation Working Group (AWG) panel session earlier this week at the Aviation Economics Conference in Dublin. Nigerian carriers’ responsibility and viability are demonstrated by their adherence to contractual responsibilities.
“The risks that the world community perceives do not accurately reflect the reality in Africa, and Nigeria in particular,” he stated. Our airlines are able to fulfill their financial responsibilities and other commitments under ACMI agreements. Airlines like Air Peace and Arik Air, for example, have been able to continue operating under these agreements, demonstrating both their proficiency and the strength of our traveler base.
Speaking about the topic of insurance, Keyamo disclosed that he was still in contact with both domestic and foreign insurance stakeholders who were in attendance at the conference. In order to determine whether we can deposit insurance risks in the Nigerian market or look into other solutions with regulators, we are working hard. Untangling the problems we confront, like as the withholding tax issue, which now charges our airlines a higher rate than their international rivals, requires this discussion. For instance, whereas many airlines in other regions operate under more advantageous tax conditions, Nigerian airlines are subject to a 10% withholding tax.
President Bola Ahmed Tinubu, who has emphasized the significance of establishing Nigeria as a major player in the international aviation industry, has given Keyamo the mandate, which motivates his efforts. Keyamo was upbeat about Nigeria’s strategic advantages while speaking about the country’s potential as a hub for aviation in West Africa.
We are ideally situated to serve as Africa’s center. Nigeria’s population of more than 200 million, ambition, and geographic location make us uniquely qualified for this role, even though we admit that we are late to the party in comparison to nations like Ethiopia and Angola. Because of our location, we can link to any area of the world at any time, which makes it a perfect place for international travelers to transit.
He also presented a bold proposal to convert concession airports into important hubs. The majority of the world’s biggest airports are run by concessions rather than by governments. Bola Tinubu, the president of Nigeria, is in favor of these initiatives and encourages us to enlist top international companies to run and develop our airports. The ultimate goal of this approach is to make our airports competitive on a worldwide basis by increasing efficiency and improving service delivery.
Despite his optimistic outlook, Keyamo is aware of the difficulties that lie ahead. “We are conscious of the challenges we confront, such as antiquated infrastructure and regulatory barriers. Nonetheless, we are dedicated to resolving these problems by working with interested parties and implementing specific changes.
Nigerian airlines are thriving on the international scene thanks to Keyamo’s clear vision and dedication to overcome current obstacles, which further solidifies their position as trustworthy partners in the aviation sector. He extends an invitation to international partners and investors to participate in this revolutionary endeavor to advance Nigeria’s aviation industry.
