• Hausa Edition
  • Podcast
  • Conferences
  • LeVogue Magazine
  • Business News
  • Print Advert Rates
  • Online Advert Rates
  • Contact Us
Monday, July 14, 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

Maximize Your Profits With BYDFi’s Trading Bots For Bitcoin, Ethereum, and Ripple

Maximize Your Profits With BYDFi’s Trading Bots For Bitcoin, Ethereum, and Ripple

13 hours ago
Dangote Refinery

Labour, Experts Back Dangote, Say Govt Refineries May Never Work

15 hours ago

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.

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.”

 


We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →

Join Our WhatsApp Channel



Tags: Aviation
SendShareTweetShare
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

Maximize Your Profits With BYDFi’s Trading Bots For Bitcoin, Ethereum, and Ripple
Business

Maximize Your Profits With BYDFi’s Trading Bots For Bitcoin, Ethereum, and Ripple

2025/07/14
Dangote Refinery
Business

Labour, Experts Back Dangote, Say Govt Refineries May Never Work

2025/07/14
Africa Creates Job Clusters With Enhanced Gas Penetration
Business

$25bn Nigeria-Morocco Gas Pipeline Project Implementation Advances Further

2025/07/14
FAAN Reopens Port Harcourt Airport Runway For Flight Operations After Air Peace Mishap
Business

FAAN Reopens Port Harcourt Airport Runway For Flight Operations After Air Peace Mishap

2025/07/14
NCAA Digitises Operations For AOC, Licence Renewal
Business

Absence Of Board In NCAA, NAMA Threatens Safety, Fuel Job Racketeering

2025/07/14
Nigeria Needs 72 Edge Data Centres To Compete Globally – Nnamani
Business

$242.72bn At Risk As Data Centres Face Escalating Climate Threats

2025/07/14
Leadership Conference advertisement

LATEST

FULL LIST: Tinubu Appoints Akume, Wike, Ribadu, Others To C’ttee For Buhari’s State Funeral

Buhari Was A Spartan Soul In A Sea Of Extravagance — Aliyu Audu

PICTORIAL: Osinbajo, Dangote, Others Bid Awujale Farewell

‘Buhari Stood Firm When It Was Easier To Bend,’ Says Ex-SGF Boss Mustapha

PIA: Nigeria Must Win Battle Against $79.4m Daily Oil Theft — Kalu

Osimhen Close To Joining Galatasaray On Permanent Deal

King Of Morocco Pays Tribute To Buhari, Consoles Nigeria

Jonathan, Akufo-Addo Visit VP Shettima In London, Pay Tribute To Late President Buhari

Dafinone Hails Obaigbena As Nigerian Media Icon At 66

Buhari: Don’t Speak Ill Of The Dead, Shehu Sani Cautions Nigerians

© 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.