MARCEL MBAMALUOver the years, Nigeria has become a butt of jokes about its air transport culture. In late May 2023, incredible tales emerged that Nigeria borrowed and repainted an airplane from Ethiopia Airlines just to pretend to have launched a national carrier, even if for 24 hours. Aside from the big jokes about a national carrier for Nigeria, the country is also plagued by high-level jests about attitudes to foreign airline operators, leading to suspension or termination of operations by airlines such as Compass Airlines, Air Italy, Alitalia, Jet Airways, Flybe and Emirates within the past four years. Dozens more had closed shop in the last 10 years.
Problem of Foreign Airlines In Nigeria: Major Headaches for Keyamo
Festus Keyamo (SAN), human rights activist, and politician is the current Minister of Aviation and Aerospace Development, a position he assumed on 16 August 2023. Before this role, Keyamo held various significant positions, including Minister of State for Labour and Employment and Minister of State for Niger Delta Affairs under former President Muhammadu Buhari. He inherited multiple headaches and is seriously at work, inspiring hopes.
Join our WhatsApp ChannelA major problem is trapped funds, as it is with Emirates, the flag carrier of the UAE, which suspended its operations in Nigeria on 29 October 2022, during the tenure of Minister Hadi Sirika. The International Air Transport Association (IATA) had earlier highlighted that foreign airlines in Nigeria are facing significant challenges due to approximately $790 million in trapped ticket revenues. This situation has led to warnings that some airlines may be forced to quit the Nigerian market if the issue remains unresolved. At present, Emirates, British Airways, and Air France are among the airlines affected by these financial difficulties, which stem from foreign exchange restrictions and high operational costs.
High exchange rates make it difficult for airlines to maintain competitive ticket prices. A persistent scarcity of aviation fuel (JET A1) has also raised expenses, contributing to higher ticket prices for travelers. Inadequate airport infrastructure and safety compliance further complicate effective operations and growth within the sector. Worse, airlines contend with multiple taxes imposed by regulatory bodies, which frustrate business expansion and increase costs for passengers.
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Tax Review Initiatives are another aspect begging for improvement. Kingsley Nwokoma, President of the Association of Foreign Airlines and Representatives in Nigeria (AFARN), in August emphasized the need for a comprehensive review of the taxation policy, stating, “The more the merrier” regarding increased airline frequencies following the resolution of trapped funds. He highlighted that the current tax framework imposes an undue financial burden on travel agents and airlines, urging the government to create a more favorable environment for business growth. These efforts reflect a comprehensive approach to revitalizing Nigeria’s aviation sector and restoring confidence among international carriers. As more investors approach, more jobs will be created.
A Glimmer of Hope?
Hope shone very brightly when Emirates restored operations on 1st October 2024. Aside bringing more investment and partnership to the country, there are other reasons for Emirates to operate the Nigerian route again. It will lead to economic boost, enhance trade opportunities, and allow Nigerian businesses to export goods via Emirates SkyCargo, which offers substantial cargo capacity. The route will facilitate seamless travel between Nigeria and Dubai – a major global hub. From Dubai, passengers can access numerous global destinations such as Asia, Europe, and the Americas, benefiting both tourism and business. Not only that, it will foster healthy competition among airlines.
Currently, reports indicate that flights from Lagos to Dubai range from $414 to $1,097. Emirates’ operation will attract more foreign airlines, potentially lowering fares and increasing options for travelers. As of 7 October 2024, Nigeria’s unemployment rate stood at 5.3%, showing an increase from 5.0% in the third quarter of 2023. Therefore, Emirates’ operation from 1st October will create jobs in the aviation sector, benefiting ground handlers and travel agents, and the move will also strengthen Nigeria-UAE relations and supports economic diversification efforts.
Is Keyamo on a Rescue Mission?
Upon taking office, Keyamo trumpeted a five-point agenda focusing on safety, infrastructure, support for local operators, human capacity development, and revenue generation. Keyamo stated, “The FG will reciprocate obstacles to frustrate Nigerian carriers on international operations,” highlighting the government’s commitment to supporting domestic airlines. The Emirate’s case seems a strong plus, an indication that Keyamo may bring some polishing to the image of the present administration.
On 27 August 2024, the Minister confirmed ongoing discussions to release funds owed to foreign airlines, including a recent payment of $61 million from the over $790 million trapped due to regulatory issues. As an advocate, Keyamo has promoted public-private partnerships as essential for sustainable growth in the sector, noting in June 2024 that “a multipronged approach” is necessary to ensure airlines remain viable and competitive against foreign carriers. Keyamo’s efforts have led to recent measures aimed at improving infrastructure and reducing operational costs, which are crucial for restoring confidence among international airlines like Emirates.
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Since assuming office in August 2023, Festus Keyamo has implemented several key strategies to revitalise Nigeria’s aviation sector. He halted the national carrier project in September 2023 and resolved land disputes for the Abuja second runway by August. Keyamo addressed infrastructure issues at Lagos Airport in early 2024 and reactivated Runway 18R in March. He signed the Cape Town Convention in April to enhance leasing options for airlines. Additionally, he emphasised public-private partnerships for infrastructure development in June 2024, aiming to create a more resilient and competitive aviation landscape in Nigeria. Through these strategies, Keyamo aims to transform Nigeria’s aviation landscape, making it more resilient and competitive on a global scale.
Rebuilding Foundations
Keyamo’s acceptance that “there’s nobody who can build big infrastructure within even two years or three years; and that’s a fact,” is a clear indication that he is strengthening the efforts of previous aviation leaders while standing out through proactive consumer-focused initiatives. His predecessor, Hadi Sirika, laid groundwork in aviation policy but faced criticism over unresolved passenger complaints, infrastructure issues and a humiliating scandal about a borrowed national carrier.
Keyamo has addressed some of these by launching the Consumer Protection Portal on 21 September 2024, which simplifies complaint processes and monitors airline performance to enhance accountability, another clear evidence that the best strategy of leadership, and what every leader in Nigerian should do to move the country forward is understanding the needs of Nigerians. He stated: “No achievement in the sector will make sense if it does not translate to improved and excellent service for the travelling public.” This focus on consumer welfare distinguishes his approach, aiming to restore confidence among air travellers.
Ideas for the Future on International Airlines
While many citizens are satisfied to some extent with what the current aviation sector is doing, its leaders should also look at areas needed to improve. For instance, regarding infrastructure, many—especially in the media, have noted that renovation of infrastructure is not where the problem lies. Rather, it lies on maintenance. Recall that Keyamo had directed the relocation of international flights at Lagos Airport to the new terminal on 1st October 2023 to facilitate work on the old terminal. This maintenance culture should be continued, and should not wait until the total collapse of an existing infrastructure.
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To enhance international airline operations in Nigeria, Keyamo should focus on several key areas. Strengthening consumer protection is vital. Therefore, building on the launch of the Consumer Protection Portal, he should ensure it is fully functional and widely publicised, allowing passengers to easily lodge complaints and receive timely responses. This initiative will help strengthen trust among travellers.
Continued investment in airport infrastructure is also crucial, with a priority on upgrading facilities and technology to improve efficiency and passenger experience. Furthermore, enhancing dry leasing options by engaging with international lessors and manufacturers can facilitate better access for Nigerian airlines, reducing operational costs and improving service reliability.
Promoting local airlines is another important strategy. The minister should not only advocate reciprocal agreements with foreign carriers—such as seen with Air Peace’s operations to London—but also maintain an open-door policy for regular dialogue with industry stakeholders to ensure that concerns are addressed promptly. This will foster a collaborative environment. By implementing these strategies, the current aviation leadership and subsequent ones can solidify passenger confidence and position Nigeria’s aviation sector for sustainable growth; hence other leaders can understand the relationship between leadership and people’s needs. For now, Keyamo has given a serious indication that he is efficient.
Dr Mbamalu is a Jefferson Fellow, member of the Nigerian Guild of Editors (NGE) and a renowned Publisher.
Dr. Marcel Mbamalu is a communication scholar, journalist and entrepreneur. He holds a Ph.D in Mass Communication from the University of Nigeria, Nsukka and is the Chief Executive Officer Newstide Publications, the publishers of Prime Business Africa.
A seasoned journalist, he horned his journalism skills at The Guardian Newspaper, rising to the position of News Editor at the flagship of the Nigerian press. He has garnered multidisciplinary experience in marketing communication, public relations and media research, helping clients to deliver bespoke campaigns within Nigeria and across Africa.
He has built an expansive network in the media and has served as a media trainer for World Health Organisation (WHO) at various times in Northeast Nigeria. He has attended numerous media trainings, including the Bloomberg Financial Journalism Training and Reuters/AfDB training on Effective Coverage of Infrastructural Development of Africa.
A versatile media expert, he won the Jefferson Fellowship in 2023 as the sole Africa representative on the program. Dr Mbamalu was part of a global media team that covered the 2020 United State’s Presidential election. As Africa's sole representative in the 2023 Jefferson Fellowships, Dr Mbamalu was selected to tour the United States and Asia (Japan and Hong Kong) as part of a 12-man global team of journalists on a travel grant to report on inclusion, income gaps and migration issues between the US and Asia.
