‘Private investment in Nigeria’s airports to hit 48%’

A private sector infrastructure investment in Nigeria’s aviation sector is envisaged to rise to 48 per cent next year from the current 46 per cent, a former Managing Director of the Federal Airports Authority of Nigeria (FAAN), Richard Aisuebeogun, has said.

He said this in a paper he presented, which was sent to Woleshadare.net.

Nigeria, he said, requires huge financial resources to be at par with other emerging economies in airports infrastructure development.

Aisuebegun noted that besides a total of $4.4 billion accrued to Nigeria in air transport sector in 2016 from Foreign Direct Investment (FDI); 7.49 per cent of $59.4 billion came to Africa.

His words: “In 2010, $6 billion came to Nigeria’s aviation industry, but started depleting since then due to Nigeria’s non-conducive investment climate. In 2012, it came down to $7.1 billion; 2013 $5.6 billion, while in 2014 it came down to $4.6 billion. It nosedived to $3.6 billion in 2015 and $4.4 billion last year”.

To him, the story of aviation infrastructure in Nigeria was a pitiable familiar tale – until the recent times that government began to take the sector seriously.

Aisuebeogun advised that Nigeria rebrand its airports because of current image, which he termed low, adding that for an improvement in passenger facilitation, security and safety, the only realistic way forward for Nigeria is to improve her airports infrastructure.

“The airport is a gateway to the country and the first impression a foreigner has of a nation. Hence, there must be massive investment in infrastructure,” he stressed.

The expert said he was happy that the present administration is focusing on issues that will rapidly develop the aviation industry within the shortest possible time.

These, he said, include aviation safety and security, infrastructural development, the establishment of a national carrier, lack of a world class aircraft maintenance, repair and overhaul (MRO) facility in the country.

In the early 90’s to 2000’s, he said many Nigerian Airports were characterized with terminals that looked more like abandoned sheds than departure or arrival lounges and toilets whose putrefying smells could send even the most courageous of scavengers scampering for safety.

He equally stated that “dysfunctional air conditioning systems that literally turned terminals to baking ovens, public address systems that produced creaking noises than audible announcements, old, out-dated, dilapidated and dysfunctional carousels and thread-bare furniture, among others.”

He insisted that there was the need for both federal and state governments to have commitment to aviation infrastructure development.

To him, this would enhance connectivity, expand passenger and cargo markets, create more competitive fare structures, increase destination for travellers and help boost socio-economic activities.

“The prosperity of any nation is determined by investments in infrastructure, especially in aviation and transportation,” he said.

“However, these investments must be done in a transparent manner, which will attract more investors.”

He also advised government to support Nigeria’s airlines through enactment of favourable policies and access to financial loans to acquire modern aircraft to compete with other global airlines.

Aisuebeogun commended the democratic government of the country, which he said has shown great awareness of the positive relationship between airport infrastructural development and economic growth.

Some of the major landmarks of government in the aviation sector, according to the expert, is the re-establishment of direct air link between Nigeria and the United States in 1999, the liberalisation of the aviation industry, which culminated in the popular open Skies Agreement and the policy of making the Murtala Muhammed International Airport a hub airport in the West Africa air transport region, among others.

He called for the establishment of a national hanger for the MRO of aircraft in order to ease the burden of airline operators.

Aisuebeogun added that airports in the country needed to be upgraded to meet international standards and make the country an aviation hub.

Air transport, he reiterated, is a crucial development driver bringing both economic and social benefits, including regional integration.