Minister laments, says 95% travellers carried by foreign airlines, Air Peace to build N32 billion MRO

• Air Peace to build $32 billion MRO facility in Lagos, gets FG’s nod for Italy, Canada, Turkey
• Facility to stem $2.5 billion on overseas aircraft repairs

Minister of Aviation and Aerospace Development, Festus Keyamo, has expressed concern about the inability of Nigerian carriers to compete with foreign carriers due to the humongous capital flight occasioned by a lack of critical mass.

He further stated that over 95% of Nigerians travelling outside the shores of Nigeria are airlifted by foreign airlines, leading him to approve three key routes —Italy, Canada, and Turkey — to Nigeria’s flag carrier airline, Air Peace.

The Minister said it was his wish that many of the passengers travelling in and out of Nigeria are carried by the country’s airlines, stressing that the numbers are massive, an indication of how profitable the carriers would have been if they had enough equipment to operate and compete with their foreign counterparts

Keyamo

“I see many of the foreign carriers flying in and out of Nigeria. We do not have anything against them, but I wish the passengers were airlifted by our own airlines.

Keyamo, who spoke on Wednesday at Air Peace’s Maintenance, Repair, and Overhaul (MRO) groundbreaking ceremony at the Murtala Muhammed International Airport, Lagos, disclosed that the N32 billion facility, with the support of Bank of Industry (BOI) will be a game changer in tackling Nigerian airlines’ aircraft maintenance challenges.

He disclosed that yearly, Air Peace alone incurs about N150 billion on the maintenance of its aircraft overseas; a situation he noted had adversely affected the fortunes of not only the carrier but many other airlines in the country.

Cumulatively, the lack of functional aircraft maintenance facilities otherwise known as Maintenance Repair Overhaul (MRO) cost Nigeria $2.5 bil­lion in 2021 in MRO investments in neighboring countries like Ethiopia,  Morocco, Egypt, United Arab Emirates, South Africa, and other nations with advanced maintenance facilities according to a former Managing Director of the Federal Airports Authority of Nigeria (FAAN), Capt. Rabiu Yadudu.

His words, “What is going on here is going to be a national treasure. It is a thing of joy for Nigeria. We are happy this is happening under our watch. Air Peace has come to fill the void.”

The Minister attributed the frequent collapse of airlines in Nigeria to a lack of aircraft maintenance facilities, among others, saying, “Over a hundred airlines have come and gone. They did not survive before we came. When we came in, the first question we asked was how best we could support the airlines for their survival and growth. We are very unapologetic about our support for our airlines more than the foreign airlines”.

“My mandate was to make sure businesses under my watch survive and are supported, but I told them that we will not tolerate any action that is inimical to safety. Safety is our key and it is a priority for us in the aviation industry”.

Having such MRO investment here in Nigeria, according to Keyamo, would create more employment opportu­nities for Nigerians, revenue generation, and training of technical personnel for main­tenance of aircraft.

Chairman of Air Peace, Allen Onyema, expressed joy at a dream which he said had finally come through as he heaped praises on President Bola Tinubu and Keyamo for supporting businesses to grow.

He stated that it was a dream come true for him, explaining that the land at the airport, which would house the MRO facilities, training facilities and a four-storey office building, was paid for eight years ago after the carrier applied for it nine years ago.

‘It took the support of President Tinubu and Keyamo to get the approval within one year. The ease of doing business has returned, and the massive support for airlines by the government. We spend N150 billion annually on MRO. The capital flight out of this country for the repair of aircraft offshore is alarming. Nigeria will start attracting foreign investments from this MRO”.

A top official at the Federal Airports Authority of Nigeria (FAAN) said the delay in granting Air Peace approval for the land was due to its initial approval seeking a 99-year lease on the land, which was not granted because the maximum years for land lease is 25 years.

Aviation Metric gathered that the concession for the land space is for 40 years.

The Air Peace chief put the cost of building the facility at N32 billion to be financed by Bank of Industry (BOI).

Wole Shadare