$50b needed to grow aviation in Nigeria in 28 years, says Demuren
The Managing Director of Evergreen Apple Nigeria (EAN), Mr. Olusegun Demuren said the Nigerian aviation industry contributed $685 million to the country’s Gross Domestic Product (GDP) in 2015.
Demuren equally disclosed $50 billion is still needed over the next 28 years to grow the aviation sector in Nigeria.
He said business aviation which comprised chartered and private jet operators contributed 25 per cent out of the total amount, adding that there is still room for more operators in the burgeoning business aviation sector.
Demuren made the disclosure in a paper he presented at a forum of Nigerian Business Aviation Conference (NBAC)held in Lagos recently.
He noted that there is growing interest in the use of private jets and helicopters for Intelligence Surveillance and Reconnaissance (ISC), stressing that the Nigerian Customs Service (NCS) recently acquired a Cessna CJ4 jet for border patrol.
Some states have acquired up to four Intelligence Surveillance and Reconnaissance (ISC) helicopters. Nigeria Police Force also has a fleet of surveillance helicopters in Abuja and Niger Delta.
This he said would drive demand for more fixed based operations, maintenance facilities and create jobs.
Giving statistics of how that part of the aviation sector has grown over the years, Demuren stated that in 1980s, only 15 business jets were in operation in the country, noting that by 2006, the number grew to 30 and 150 by 2015.
The growth, he stated was further propelled by 305 per cent in dollar millionaires seen between year 2000-2005.
His words, “Five per cent projected fleet Compound Annual Growth Rate (CAGR). Fifty per cent business aviation fleet are in Nigeria and South Africa.”
The aviation expert however faulted unfavourable government’s policy which he said has slowed the growth of aviation in the country.
He cited five per cent import duty tax on aircraft, describing it as a conflict Nigeria is a signatory to the Cape Town Convention which does not require payment for tax on moveable assets.
“There is also five per cent import duty on essential aircraft spare parts, coupled with double taxation. Five per cent of business turnover is also demanded from operators.”
Top reasons for not investing in the purchase of a new business aircraft, according to him is that business aviation operators are not investing in purchase of new aircraft, relatively few high network of individual. Nigeria is said to have 15, 700 high net worth individuals while South Africa has 46, 500.
He listed three top issues affecting business aviation operators as unavailability of cheap finance, lack of major maintenance facilities saying that business aviation spends over $305 million yearly on overseas checks.
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