Sirika’s one year in office: Inspiring scorecard

Minister of State for Aviation, Hadi Sirika, oversees the aviation sector in a system where he is a junior minister to the Minister of Transportation, Chibuike Rotimi Amaechi.

Since he took over, Sirika made airport concession one of the policies of the Federal Government to enhance infrastructural development in the sector.

Four airports are considered for concession. They are the Murtala Muhammed Airport, Lagos, the Nnamdi Azikiwe Airport, Abuja, the Mallam Aminu Kano International Airport, Kano and the Port-Harcourt Airport.

The latest version of the concession plan will give private companies control of Nigeria’s major airports. Currently, Nigeria has five international airports and 22 domestic airports. On a yearly basis, 15 million people fly in and out of the country.

Government believes the country can do between “60 and 100 million passengers annually, within the next five years, if the right things are put in place.”

When a government concedes an airport to private investors that means it has relinquished management.

The investors become responsible for developing the airport and making sure it measures up to global standards.

The airports are improved to meet modern demands, which most Nigerian airports lack. Operational efficiency and profitability of the airports will increase and the non-oil sector of the economy will grow.

However, it is important that the concession agreement is well spelt out.

Both parties – government and private investors – need to come to a mutually beneficial agreement. Sirika had assured that the proposed concession would be a win-win situation for both the investors and the government. He said he should be held responsible if the exercise fails.

He said concession is good considering that the government is not selling the airports but to help turn around the fortunes of the decrepit aerodromes despite over N500billion spent on airport remodelling in 2013. Since he assumed office, he has engaged stakeholders.

He has got approval to have Aviation Security (AVSEC) trained like United States Transportation Security Administration (TSA) to bear arms and also to determine what kind of arms they will need for their duties.

Many cited the concession of Gatwick airport, London to a Nigerian, stressing that all over the world that is the practice, which helps to boost smooth airport operations.

Again, worried by the dwindling fortunes of airlines, Sirika met with airline operators under the aegis of Airline Operators of Nigeria (AON). The AON President, Capt Noggie Meggison specifically told the Minister that the carriers are in serious dire straits over import duty waiver on aircraft spare parts.

He listened to them and caused the government to implement the request, which takes huge revenue from the operators. Another major feat for the government is the speed with which it also implemented foreign exchange for airlines seeking forex.

The allocation, which was secured by him is to further engender market confidence, ensure access to forex by the airlines and sustain the integrity of the Nigerian Inter-bank forex market.

Aviation is highly dollarised and the operators said they need lots of forex to remain in business.

Speaking to journalists at the weekend, Sirika disclosed that the CBN has started issuing foreign exchange to domestic airlines with 60 day window.

He faulted the 60 day window, saying 60 day notice is damaging in the life of an airline.

He said the Ministry of Transportation is working on on-the spot assess of forex to carriers. Some areas that the government has not done too well are in reduction and harmonisation of charges such as Passengers Service Charge (PSC), which the operators say is stifling their operations.

The skyrocketing price of aviation fuel, otherwise known as JET A1 is a stumbling block for airlines. JET skyrocketed from N120 per litre to N240 per litre, making Nigeria one of the countries that sell the commodity at a cut throat price.

This has a huge consequence on the sector, as foreign carriers go to neighbouring nations to source for the commodity depriving the country of resources.

Other challenges, according to him are budgetary constraints, decaying/ ageing infrastructure and obsolete equipment, decrepit terminal buildings, ageing control tower and broken down air conditioning system and conveyor belts among others.

Stakeholders, comprising airline operators, service providers and neutrals commended the way he has been able to tackle some of the problems he inherited  but advised that the government should not rest on its oars because there are still lots of problems be-deviling the industry. They said they are particularly impressed with the way he has recently galvanised a sector that was on the brink of collapse by engaging and listening to all shades of opinions and how he has been able to listen to their plight.

Former President, Aviation Round Table (ART), Capt. Dele Ore, said the minister has tried his best within the short period in office especially in the area of concession, removal of import duty on aircraft and spare parts and his desire to reposition the ailing aviation industry.

Ore said he would score him 65 per cent

Wole Shadare