Operator Demands Single-digit Interest Rate To Boost Aviation Sector

The chairman of United Nigeria Airlines (UNA), Prof. Obiora Okonkwo, on Monday, urged the federal government to introduce single-digit interest rate for airline operators to enhance growth and competitiveness in the nation’s aviation industry.

Speaking at the Nnamdi Azikiwe International Airport, Abuja, during the official commencement of direct commercial flights on the Lagos–Abuja–Accra route, Prof. Okonkwo emphasised that aviation operators do not require ‘free money’ or grants, but affordable access to funding to sustain their operations.

According to him, access to loans at single-digit interest rates would enable airlines to acquire more aircraft and spare parts, ultimately strengthening the sector.

Commending President Bola Tinubu’s support for local operators, he said, “Our one trillion-dollar economy cannot be achieved without aviation. Transportation is an enabler across the world. Without it, everything else we do is in vain. We are prepared, but we cannot fly higher if we are overburdened with taxes and levies.

If we are overburdened with so many charges more than anywhere else in the world, how do we remain competitive globally?”

He revealed that the entry of UNA into the Nigeria–Ghana market had already triggered a competitive response, with the only airline previously operating direct flights on the route announcing a 15% fare reduction.

Okonkwo noted that such competition benefited Nigeria and creates new opportunities for expanding international routes. With UNA now operating internationally, he said the airline is positioned to launch more routes soon.

In his remarks, the minister of Aviation and Aerospace, Festus Keyamo, represented by the permanent secretary, Dr Ibrahim Kanna, reiterated the government’s unwavering support for indigenous operators. He said safety, insurance, and financing remained the ministry’s primary focus areas.

Kanna added that the federal government had approved duty-free importation of aircraft and spare parts, a move expected to ease financial pressure on airlines.

“This will support airlines and give them the breathing space they need to thrive in the business,” he stated.

The chairman of the Senate Committee on Aviation, Senator Ibrahim Buhari, expressed satisfaction with the growing synergy within the aviation sector. He said enhanced collaboration would soon position Nigeria’s aviation industry where it belongs on the global stage.

He added that: “Once the government supports lease arrangements, airlines will acquire more aircraft. With more aircraft, delays and other challenges will be reduced. I appeal to operators to sustain this synergy so we can support you better.”

Similarly, the director-general of the Nigeria Civil Aviation Authority (NCAA), Capt. Chris Najomo represented by the Director of Special Duties, Horatius Egua expressed delight in the progress made so far. He assured continued regulatory support, noting that strengthening indigenous airlines would improve Nigeria’s competitiveness.

“All airlines coming into Nigeria will receive the necessary support,” he assured.