Sirika returns to familiar terrain
The return of Hadi Sirika to Aviation as a Minister has opened a vista of what he did and did not do in his first term. WOLE SHADARE writes that now is the opportunity to set aviation on perfect path
Second coming
Not a few believe that newly appointed Minister of Aviation, Hadi Sirika would be given the nod to complete what he started when he served for four years as Minister of State, Aviation. Sirika’s appointment signified the President’s confidence in him going by his above average performance in his first tenure.
Scorecard
Sirika was appointed in 2015 as the Minister of State Aviation to oversee the industry and recorded milestones in projects. Of note was the closure and rehabilitation of the Nnamdi Azikiwe International Airports Abuja runway for major repairs. The project was completed on schedule. He also facilitated the part payment of the pension owing to the defunct Nigeria Airways staff.
Completion and commissioning of new airports terminals in Abuja and Port Harcourt, Abuja runway rehabilitation for six weeks and moved the operations to Kaduna to allow for the single failed runway to be reconstructed. Amidst huge resistance, enormous logistical nightmare and sceptics, it was delivered a day ahead of schedule and within budget. A modern fire-fighting simulator had been procured and to be installed in NCAT among 157 projects, delivered 134 to 100 per cent completion.
He recorded success with the hosting of International Civil Aviation Organisation (ICAO) World Aviation Forum (IWAF), excellent records on ICAO and IOSA safety Audits, NCAT attaining ICAO’s regional Centre of Excellence status. The Accident Investigation Bureau (AIB) unprecedented achievements had all the imprint of the Minister. AIB is the doyen of Nigeria’s aviation industry.
High expectations
But the Minister needs to complete fast track the setting up of national carrier, concession of airports delivering on the completion of both Lagos and Abuja airports facilities within the time frame he has to consider himself very successful within his two term spell as Aviation Minister.
For the first time in the history of Nigeria, after many failed attempts, Nigerian airports were certified (Abuja and Lagos).
Expectations are very high. Very many are in a hurry to see aviation of their dream and one that would meet the expectations of not only stakeholders but users of the airports among others.
As the Minister settles to begin the task of bringing the aviation industry back on track, stakeholders in the industry have identified the areas he ought to accord priority in order to ensure that his new three years would be a reference point for those coming after him.
They noted that the sector should be galvanised to generate more employment, right policies to encourage foreign and local investors, stressing that the opportunity in the sector are humungous.
Sector’s potentials
The aviation sector contributes N119 billion (0.4%) to Nigerian Gross Domestic Product. This total comprises N59 billion directly contributed through the output of the aviation sector (airlines, airports and ground services); N34 billion indirectly contributed through the aviation sector’s supply chain; and N27 billion contributed through the spending by the employees of the aviation sector and its supply chain.
In addition there are N78 billion in catalytic benefits through tourism, which raises the overall contribution to N198 billion or 0.6 per cent of GDP.
The aviation sector supports 159,000 jobs in Nigeria. This total comprises: 44,000 jobs directly supported by the aviation sector; 64,000 jobs indirectly supported through the aviation sector’s supply chain; and 51,000 jobs supported through the spending by the employees of the aviation sector and its supply chain. In addition there are a further 130,000 people employed through the catalytic (tourism) effects of aviation.
One area the Minister needs to focus his attention is on the airline operations. Sirika worked tirelessly to convince the Federal Government on the necessity to exclude airlines from Value Added Taxes (VAT) regime. For many years, successive looked the other way while airlines were burdened by the additional cost to their operations.
Impact on airlines
Nigerians have been crying out for decades now for discussions on the immediate removal of VAT from domestic air transportation in line with global best practices. VAT was an added burden on passengers who have limited disposal funds and have reached their elastic point in this difficult time in the nation’s economy.
VAT on commercial air transportation was a huge departure from what obtained worldwide and an increased burden on Nigerian travellers.
Elated by the gesture, Chairman of Air Peace Limited, Mr. Allen Onyema commended the Federal Government for recent range of policy initiatives introduced to lift domestic aviation in Nigeria.
Onyema thanked President Muhammadu Buhari-led administration for the support given to domestic airlines, especially the recent removal of the Value Added Tax on transportation and waivers on the importation of aircraft spares.
Yes, these appear laudable, but there are other fundamental issues facing the sector which Sirika’s second coming could help to resolve which time did not permit him to do.
Airlines need help
Beyond Nigerian carriers’ self-destructive style of operations, the Minister could assist them to remain in operation because the death any airline would automatically lead to the retrenchment of at least a thousand people. It remains to be seen how the Minister handles the controversial multiple designations to foreign airlines at a time Nigerian carriers are not only weak, but small and fragmented.
Stakeholders, particularly, members of Aviation Round Table (ART) have stated that if the government finds it difficult to stop foreign airlines from mopping the domestic market, they should at least stop granting them more flight rights to many airports across the country.
National carrier project
This is one project that almost tainted the achievements of Sirika. Many backed the project to succeed because of the lackadaisical behaviour of domestic airlines that lack the wherewithal to compete with foreign carriers and help to retain at least three per cent of over $500 million tickets sales in the country. The news of suspension of planned national carrier for Nigeria by the Federal Government late last year jolted a lot of people, who felt that Nigeria has again truncated a great opportunity to bequeath to the country an airline that would very well fly Nigeria’s flag to many countries of the world.
Many became despondent. Sirika was highly discouraged but was determined to see through the project that had taken his time, the country’s resources and put everybody on edge on the huge expectation of having a national airline 17 years after Nigeria Airways was liquidated in a brazen manner by government at the time.
Domestic airline operators jubilated and even congratulated President Muhammadu Buhari for what they termed ‘bold and courageous’ move to stop what they described as another huge money about going down the drain.
Sirika has vowed to return to the drawing table to perfect what could etch his name in gold and that of President Muhammadu Buhari should they pull it through.
Airport concessions
The Minister scored zero in this area despite the energy that went into concession of some aerodromes. He had already softened the grounds, got the buy in of the workers unions and all other stakeholders that had already given him their support after assuring that labour issues would be tackled without anyone being short-changed. The plan never crystallised.
Expert’s view
Former Commandant, Murtala Muhammed Airport, Lagos, Grp. Capt. John Ojikutu (Rtd) said there should be no going back on the plan for a national carrier and as earlier suggested the composition and share ownership must include experience foreign technical partner/investor, credible Nigerian investors and the Nigerian public through the Stock Market to give it a national image and not a government image.
However, like he said at the last stakeholders’ forum, he stated that government including states who wish to be part must together not have more than 10 per cent share in the national carrier capitalization (12 18 months).
His words, “With the plan for airport concession, FAAN should be upgraded to a Holding Company having all the terminals concession to private companies on behalf of the federal government. Give out all the 20 federal airports for concession at once to remove the burden of providing annual budgets for their maintenance and improvement from the government except recovery intervention.”
Last line
Events between now and 2023 would help in predicting the kind of destination the industry would berth at the end of the present administration.
