Budget: Aviation Gets N78.8bn As National Carrier’s Working Capital Gulps N400m

NAMA’s overhead excluded, AIB to spend N159.400m
Power project at Lagos, other airports get N881.064m

A total of N78.992 billion has been budgeted for the aviation industry just as the breakdown indicated that N71.300 billion is for capital expenditure, N6.880 billion for personnel cost in 2022, according to the Ministry’s budget sighted by Aviation Metric.

This is slightly higher than that of 2021, which had N59.788 billion for capital expenditure; N397.197 million as personnel cost; N353.064 million for salary and wages.

For the Ministry of Aviation, N522.935 million is allocated for personnel cost; N249.999 million for overhead, and N60.680 billion for capital expenditure, bringing the total allocation to N61.452 billion for the Ministry.

For the Nigerian Meteorological Agency (NIMET), N4.399 billion is allocated for personnel cost, N159.400 million for overhead, and N1.48 billion for capital expenditure, bringing the total allocation to N6.048 billion.

The Nigerian College of Aviation Technology (NCAT) has a budget of N1.958 billion on personnel, N243.400 million on overhead, and N2.554 billion on capital expenditure.

There are indications that the Nigerian apex aviation training institute would be able to complete some of its projects this year that could enhance learning.

Some of the facilities that are nearing completion are aircraft simulation projects and accident investigation training centres and the acquisition of training airplanes among others.

For the Nigerian Airspace Management Agency (NAMA), it has zero allocation for personnel cost, zero budget for overhead, and N5.750 billion for capital expenditure.

The Accident Investigation Bureau (AIB) has zero allocation for personnel cost, N159.400 million for overhead, and N825.181 million for capital expenditure.

Appointed as Commissioner and Chief Executive Officer of AIB in January 2017, Olateru had to ‘overthrow’ the old order by calling for the accident reports that had gathered dust in the shelves.

That bold step resulted in the release of a total of 27 final reports (including several outstanding accident/incident reports), that is, some 58.7 percent of AIB’s total of 46 final reports released since inception in 2007.

Besides, a total of 97 safety recommendations have been issued in these reports accounting for 54.5 percent of the total 178 recommendations issued since the inception of AIB.

Having cleared the old table, he set a new template for the agency to make it “more committed to a swift response to incident and accident notifications through our well-equipped command and control centre.

He launched a mobile app to “interface with the public and make it easy for them to communicate with AIB digitally, thereby simplifying the process of accident reporting.”

Shortly after his appointment, he invited personnel from Singapore and the International Civil Aviation Organisation (ICAO) to train AIB’s technical personnel on the use of flight safety laboratory as well as evaluate the laboratory prior to its update.

On the heels of that was the collaboration between AIB on the one hand and the United States National Transportation Safety Board (NTSB) and ICAO on the other in training 18 AIB staff who were recruited in 2013 but were not trained.

The agency had signed MoUs with many countries that believe in what the agency is doing and want it to work with them and share the experience.

At the last count, the agency had signed MoU with France, Benin Republic, Sao Tome, and Principe.

The ongoing power energy improvement at Lagos and other airports would gulp N881,064,064. Also, ongoing projects like the strategic partnership for public partnership projects in the aviation sector and aviation sector roadmap and publicity would cost N150,000,000.

Cladding of external surface of airline offices in Abuja airport (N 228,179,066); working capital for the establishment of the national carrier at the cost of N400,000,000.

As part of its capital project, the ongoing construction of control tower and technical building at the Akanu Ibiam International Airport, Enugu domestic terminal would cost N373, 205,175; upgrade and rehabilitation of Minna domestic terminal at N20,000,000; completion of apron expansion of the Port-Harcourt phase 2 which is still on-going at the cost of N106,321,873.

There is also ongoing construction of Akure airport that is at the cost of N20,000,000; development of cargo terminal at seven airports including Katsina, Jos, Benin, Ekiti, Yola, Birnin Kebbi, and Enugu at the cost of N500,000,000; maintenance of calibration aircraft/equipment /equipment at N250,000,000;  expansion of the Nnamdi Azikiwe International Airport, Abuja at the cost of N478,383,131 and the expansion of the Lagos at the cost of N261,553,268.

Principal Partner, Avaero Capital, Sindy Foster she was surprised at such huge fund for capital expenditure on some of the aerodromes that the Federal Government have slated for concession especially the Murtala Muhammed Airport, Lagos, the Nnamdi Azikiwe International Airport, Abuja, Aminu Kano International Airport, Lagos and the Port-Harcourt International Airport, Lagos.

“There is the need to audit the budget of last year and to know how it performed. There are other areas like health, housing and others that are more critical”.

Aviation consultant, Dr. Daniel Young said he had not seen the budget and would comment only when he sees it, studies it, and make informed input.

Wole Shadare