Nigeria tops business aviation market

Despite the economic downturn, Nigeria has continued to rank as country with the highest number of business aviation in Africa followed by South Africa.

Growth has been driven predominantly by the oil and gas industry, even though Nigeria’s private jet fleet is larger than the commercial aircraft fleet. However, other sectors, including finance, manufacturing, telecoms and agriculture, are all contributing to a market, which is set to grow more by 10 per cent this year.

Managing Director, Evergreen Apple Nigeria (EAN), Segun Demuren, made these disclosures in Ibadan. Demuren was the convener of the third Nigerian Business Aviation Conference with theme: “Sustaining Nigeria’s Position on the African Business Aviation Landscape,” that ended at the weekend.

He also lamented the situation whereby any aircraft put on a 5N (Nigerian) registry loses asset value by as much as 25 per cent, yet incurs higher insurance premiums, up to 35 per cent higher in some cases.

The Evergreen Apple Nigeria boss said: “Maintenance and service support still remains a challenge and whilst the fleet continues to grow, there are no accurate figures for the amount of jets operating in Nigeria. Educated guesses say between 100 and 150, with an anticipated 350 set to be in operation by 2016.”

However, underpinning the significance of the conference and the Nigerian pride in its business aviation sector, Demuren stated that operators and key stakeholders were all delivering the same message – “We believe in Nigeria. We are committed to Nigeria and we are willing to understand how we can do business successfully.”

He stated that the struggle is to educate and train as quickly as possible, stressing that knowledge transfer will take some time before Nigeria has enough home grown engineers.

Chairman, Airline Operators of Nigeria (AON), Captain Nogle Meggison, said that transport logistics within Nigeria also stimulated growth with poor roads, a limited domestic airline fleet and train network, which meant that executive jets provide a solution to much of the logistical challenges in the country.

He said: “The time saving, the convenience and the increased productivity that follows means business aviation is not a luxury but an essential tool for growth in Nigeria.”

Megisson argued that the government was supporting expansion, stating that it had removed import duties on new jets, had signed the Cape Town convention reassuring lessors about asset security; invested in new infrastructure including a private jet terminal that opened last year in Abuja;

and did not impose a time restriction on the amount of time a foreign registered private jet could stay on the Nigerian soil. Whilst this was stimulating growth, he acknowledged that improved regulations, comprehensive MRO offerings, the implementation of structured safety management systems and local participation were all necessary for ongoing success.

An airline chief, who preferred anonymity, in Ara chat with New Telegraph, estimated that 150 business aircraft existing in Nigeria today are owned by the government, corporate organisations and individuals.

He added that the Nigerian Civil Aviation Authority (NCAA), monthly, processes over 200 business and private flight clearances.

Besides, he said: “Overall, however, Nigeria remains one of the largest business aviation markets in Africa with continued growth expected over the next 15-20 years. Demand for Business Aviation is principally fuelled by activities in the oil and gas sector.”

He noted that there are expectations that growth in business aviation in Nigeria would marginally slacken due to downturn in the economy.