Aviation industry needs credible data – AGHAN

The Chairman of the Aviation Ground Handling Association of Nigeria, Olaniyi Adigun, has said for the industry to rise above multiple challenges currently facing it in the country, it must have credible data to track activities as well as achievements.

 He also said the need for collaboration and consolidation cannot be overemphasised in the journey to achieve prosperity in the Nigerian aviation sector.

Adigun spoke at a gathering of aviation stakeholders recently in Lagos, regretting that the sector was yet to be taken as a critical business as being done elsewhere.

He stressed that the industry could take a cue from the financial sector, which had evolved with collaboration, consolidation and partnership.

He explained that with the skyrocketing exchange rate, no organisation or airline could successfully operate alone, insisting that the sector may collapse if the partnership was continually ditched.

 “It is not rocket science that the industry is where it is today; the dollar is rising against the naira. We all need to know that aviation is a business, and when we talk about business, we talk about profitability and data collection. How do we sustain the Nigerian aviation business? We need to have an economic summit where we open the doors to investors; we need to open up. What are these challenges facing us? This is very important. We cannot continue to stand alone.

“Secondly, are we trading among ourselves? We are not! I can have an Automated Teller Machine card from a particular bank and use it in another bank’s ATM. If I book, for instance, with Aero Contractors, can I use it on Air Peace? We don’t have such a close relationship. We need to collaborate among ourselves.

“Yes, the Minister of Aviation and Aerospace Development can advocate for dry leasing and not welcome wet leasing, but the fact is, are the operators doing business among ourselves? There is the need for us to look inward, collaborate, consolidate and stand together,” he noted.

The aviation expert wondered why getting adequate data has become a difficult task despite the array of government agencies in the industry.

According to him, government agencies in the sector release different data to investors, stressing that without authentic data gathering, the Nigerian aviation industry would continue to grope in the dark.

“I was very happy when someone spoke about data. You can’t do business without data. The CBN forecasts in the banking industry and it can tell you the growth or diminishing rates in the sector, but, who is doing that in the aviation industry?

“How do we get the data? And without data, you cannot do business at all. It is good for us to look inward and talk figures. Aviation is about business. What you sell is about air safety and security,” he said.

Giving data on spending and revenue, the Managing Director of the Nigerian Airspace Management Agency, Umar Farouk, stressed the need for the agency to raise its en-route navigational charges from N2,000 and N6,000 to N18,000 and N54,000 per flight.

Similarly, the airspace agency increased the extension of service hours to airlines from N50,000 to N450,000, representing an 800 per cent increase per extension to enable the agency to recover the cost of diesel and other logistics during the extension period.

Farouk noted that in 2023, NAMA had an expenditure of about N21bn in personnel costs alone, over N12bn in capital costs, and over N10bn in overhead costs.

He explained that all those were to be funded without the Federal Government budgetary allocation.

“Our agency works and rallies on the statutory fees for the management of the airspace and our job is a very critical one. Safety cannot be undermined for anything, not in this industry. These funds are generated from services we provide to the flying community. Without these funds, NAMA can’t operate nor discharge its responsibilities of ensuring the safety of our airspace effectively. We mainly generate these funds through airlines.

 “Even though most costs in the economy have increased by more than 1,000 per cent, NAMA has proposed to increase its fees by 800 per cent. The new rates for en-route and terminal navigation charges are to be reviewed from N2,000 and N6,000 to N18,000 and N54,000 per flight. Also, the extension of hours of service is to be reviewed from N50,000 to N450,000 per extension to enable the agency to recover the cost of diesel and other logistics during the period of extension,” he announced.