• Hausa Edition
  • Podcast
  • Conferences
  • LeVogue Magazine
  • Business News
  • Print Advert Rates
  • Online Advert Rates
  • Contact Us
Wednesday, August 27, 2025
Leadership Newspapers
Read in Hausa
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
Leadership Newspapers
No Result
View All Result

Aircraft Owners, Pilots Decry Aviation Sector’s Insignificant Contribution To GDP

by Yusuf Babalola
2 years ago
in Business
Aircraft Owners
Share on WhatsAppShare on FacebookShare on XTelegram

Aircraft and Owners Pilots Association of Nigeria (AOPA), has said that the aviation sector contribution of 0.6 per cent to the nation’s Gross Domestic Product (GDP), of the country as insignificant.

Advertisement

LEADERSHIP reports that the minister of Aviation and Aerospace Development, Festus Keyamo, had said that the aviation sector contributed N117 billion which is 4% to the National GDP in the first quarter of 2022.

He also said that the sector supports about 200,000 jobs and pays about N8.5 billion in tax annually.

However, speaking at a Webinar, titled, ‘Repositioning the aviation sector for revenue generation and growth: Role of Legislation’, the president of AOPA, Dr Alexander Nwuba, bemoaned the insignificant contribution of aviation in Nigeria to economic growth despite its potentials to generate revenue, create employment, and spur the development of other industries such as hospitality and tourism.

He, however, stressed that currently the sector contributed 0.6 per cent annually to the GDP.

RELATED

The Evolution Of Betting In Nigeria: A Journey Of Growth

How To Bet Smarter In 2025

11 hours ago
Malabu Oil: Abacha Family Wants Minister To Withdraw Claims On Court Cases

Global Oil & Gas Contracts Up By $7bn In Q2

16 hours ago
ADVERTISEMENT

He also branded the country as one of the highest turnover of registered domestic airlines in the world.

He put the average lifespan of businesses of airlines at between five to ten years, adding that more than 150 airlines were registered as of 2000 while only 28 survived until 2006.

In 2007 alone, seven air licenses, he said were withdrawn by the Nigerian Civil Aviation Authority (NCAA), adding that most Nigerian airlines are struggling to stay afloat.

ADVERTISEMENT

He identified absence of local content and legislation as factors contributing to the failure of local airlines.

“Nigeria is signatory to over 90 Bilateral Air Services Agreement (BASA), most unfairly skewed against Nigerian airlines including the open skies treaty known as the Single African Air Transport Market (SAATM). 

BASAs entered into without adequate consideration of their impact on aviation in Nigeria.”

“Over 25 foreign airlines operate flights into Nigeria. Only one Nigerian airline operates internationally. One or two Nigerian airlines operate on regional routes.”

He stated that the Federal Government needs to reverse the trend through the Nigerian Aviation Sector Road Map, aimed at boosting the aviation sector’s contribution to the economy.

“There are concerns that the road map focuses too much on hard infrastructure and ignores legal infrastructures such as laws and regulations. Legal infrastructure can be a powerful tool for transformation of the aviation sector, as it can support competition, enterprise, and development of the economy.”

Nwuba recalled that Olisa Agbakoba Legal had put forward a proposal for a Fly Nigeria Bill similar to the Coastal and Inland Shipping (Cabotage) Act 2003, which opened up N10 trillion local maritime economy.

Modeled after the Fly America Act of 1974, he said it sought to protect and give market share to Nigerian airlines.

“It prevents public funds from being ferried away by foreign airlines but ploughed back into Nigerian airlines to generate employment, revenue, access to capital, foreign investment, career projection for core professionals, and most importantly, ignite a dash for codeshare and alliance with Nigerian carriers,” he said.

Enumerating the challenges the country’s carriers face, Nwuba who is also Special Adviser to the President of the Federation of Tourism Association of Nigeria (FTAN), lamented foreign exchange required for airplanes, parts, training and virtually every operation for an airline has always been difficult to source.

“Life span is short because of ineffective oversight and enforcement of not only the Safety and Security Regulations but more importantly the regular auditing of the Economic Regulations to ensure the health of the airlines’ financial balance sheets.”

Solving the problems in the Nigerian aviation industry according to him is not about infrastructure even though infrastructure, he reiterated will improve the experience, it is however as proposed in the concept paper about building better airline businesses.

He listed two prospects that face the Nigerian airline industry today including a well-run and well-capitalized airline that enters the industry today and takes out 90% of the current operators or the cycle of starts and stops continues and at the very best extends the averages faced in the industry over the last 60 years.

“We can improve the odds by adopting some of the prudential guidelines in the financial industry today such as corporate governance principles, financial principles including capital requirements, reserves, and corporate structures, favoring public over private enterprise structures.”

“The Fly Nigeria Bill must be encouraged to attract more business towards local airlines and improve their competitiveness while we also review BASA and other aviation agreements.”

 


Join Our WhatsApp Channel

Nigerians can now earn US Dollars monthly by acquiring domains cheaply and reselling for profits up to $18,000 (nearly ₦30Million). Beneficiaries include professionals, entrepreneurs, civil servants and more. Click here to start.


Tags: Aviation
SendShare10176Tweet6360Share
ADVERTISEMENT
Previous Post

Uzodimma Empowers 15,000 Youths With Digital Skills

Next Post

‘Allegations Of Age Falsification, Corruption Against AGF Fake’

Yusuf Babalola

Yusuf Babalola

You May Like

The Evolution Of Betting In Nigeria: A Journey Of Growth
Business

How To Bet Smarter In 2025

2025/08/26
Malabu Oil: Abacha Family Wants Minister To Withdraw Claims On Court Cases
Business

Global Oil & Gas Contracts Up By $7bn In Q2

2025/08/26
Fadaella Foods To Capture Nigerian Market With New Products
Business

Fadaella Foods To Capture Nigerian Market With New Products

2025/08/26
Africa Prudential Records 75% PBT Growth, N41.35bn Assets In H1
Business

Africa Prudential Records 75% PBT Growth, N41.35bn Assets In H1

2025/08/26
FG, Imo, NDPHC Seek Speedy Completion Of Egbema Power Plant
Business

Kano Manufacturers Engage NDPHC On Direct Power Supply

2025/08/26
Insurance Firms Begin Self-prescribed Recapitalisation As Minimum Capital Controversy Rages
Business

New Law Offers N2m Medical Compensation For Uninsured Accident Victims

2025/08/26
Leadership Conference advertisement

LATEST

Kwara: Kidnap Victims Escape As Security Forces Raid Criminals’ Hideouts

JUST-IN: Osun Gov’t May Sack Monarch Jailed In US For $4.2m COVID-19 Fraud

Tinubu Celebrates Senator Ekpenyong At 40

Fresh FM Inferno: Ayefele Responds To ‘No Insurance’ Claims

Court Orders Banks To Produce Activist Sowore’s Account Transactions

Reps To Probe UNIBEN Teaching Hospital’s Budgetary Expenditures

C’Wealth Weightlifting: Omolola Wins Team Nigeria’s First Gold In India

JUST-IN: NRC Suspends Abuja-Kaduna Train Services After Derailment

Fire Razes 5 House In Cross River Community

Bode George Hails PDP Zoning, Says Party Ended ‘Existential Imbecility’

© 2025 Leadership Media Group - All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us

© 2025 Leadership Media Group - All Rights Reserved.