High Revenue Deductions Weakening Aviation Sector – Airline Operator

Chairman of United Nigeria Airlines, Professor Obiora Okonkwo, has called for a comprehensive review of the aviation remittance framework, warning that heavy deductions from industry-generated revenues are undermining the growth and efficiency of the sector.

Okonkwo made the appeal in Lagos during the unveiling of the airline’s newly acquired 2 Boeing 737-800NG aircraft, saying the current financial structure leaves key aviation agencies underfunded and unable to effectively discharge their statutory responsibilities.

According to him, regulators and service providers such as the Nigerian Civil Aviation Authority (NCAA) and the Federal Airports Authority of Nigeria (FAAN) require stronger financial autonomy to address operational and infrastructure gaps across the industry.

“I am hopeful that government, in view of that report, will want to consider a number of issues that we have consistently raised over the years,” he said.

He argued that aviation revenues should be largely retained within the agencies that generate them rather than being heavily deducted and remitted to the Federal Government, a practice he said weakens institutional capacity.

“We are telling the government that until aviation revenues are retained within the aviation agencies, the sector will continue to face serious challenges. The money accrued to the NCAA should remain in NCAA accounts. The money accrued to FAAN should remain in FAAN accounts,” he stated.

Okonkwo stressed that predictable and adequate funding is essential for aviation bodies to maintain safety standards, upgrade infrastructure, and meet growing operational demands across Nigeria’s aviation ecosystem.

“I say this because it is no secret that a significant percentage of the revenue generated by these agencies is remitted to the Federal Government. This leaves the agencies with limited resources to perform their duties and develop critical infrastructure,” he said.

He further noted that strengthening the financial base of aviation institutions would improve oversight, enhance airport facilities, and support safer and more efficient operations.

The United Nigeria Airlines chairman also highlighted the broader economic importance of aviation, noting that the sector plays a critical role beyond passenger transportation, particularly in supporting oil and gas operations and other strategic industries.

“Consider the role aviation plays in the economy. Much of the oil and gas industry, particularly offshore operations, depends on aviation services to transport personnel and equipment. Without aviation support, many of these activities would be difficult, if not impossible, to sustain,” he explained.

He added that aviation should be viewed as a core pillar of national development rather than a standalone commercial industry.

“Therefore, when we talk about aviation, we are not merely talking about a business sector. We are talking about a critical component of national development. This includes all the operators and service providers whose activities support key sectors of the economy,” he said.

Okonkwo also advocated for improved access to affordable financing for local operators, saying high interest rates remain a major barrier to expansion and fleet modernization.

“In conclusion, we would also like to see policies that provide access to single-digit interest loans for aviation operators. As things stand today, loans from commercial banks are extremely expensive, making it difficult for operators to invest and grow their businesses,” he said.

He expressed optimism that addressing both the aviation remittance structure and financing constraints would significantly strengthen the sector and improve its contribution to economic growth.

“If these issues are addressed, the aviation industry will be in a much stronger position to contribute to economic growth and national development,” he concluded.

Firms Collaborate to Drive Digital Banking Transformation Across Africa

BY KINGSLEY OKOH, Lagos

Africa’s digital commerce company, Interswitch Group has entered into a strategic collaboration with global banking technology firm, Temenos to accelerate the transformation of digital banking services across the continent.

Under the partnership, Interswitch will adopt Temenos’ technology suite to enhance its digital banking capabilities and deliver managed services to banks and financial institutions across key African markets.

The collaboration will see Interswitch leverage Temenos solutions spanning core banking, digital banking, payments, wealth management, and financial crime management. These will be deployed through both cloud-hosted and on-premises models, enabling financial institutions to modernise their operations and transition towards more customer-centric business models.

The service rollout is expected to initially cover major African markets including Nigeria, Ghana, Côte d’Ivoire, Kenya, and other strategic regions, with plans to expand further across the continent.

Speaking on the partnership, Managing Director for Digital Infrastructure & Managed Services (Systegra) at Interswitch, Jonah Adams, said the collaboration marks a significant step in the company’s growth strategy.

“By adopting Temenos’ cloud-native, composable platform, Interswitch gains the flexibility and scalability to accelerate its next phase of growth and deliver banking services that meet the needs of African markets,” Adams said.

He added that the partnership represents a strategic pivot for the company beyond payments into broader digital banking infrastructure.

“This is a pivotal moment for Interswitch as we accelerate our expansion beyond payments and reimagine digital banking for Africa. Our partnership with Temenos is strategic in that it allows us to introduce a highly configurable banking platform that leverages the latest cloud technologies into our technology stack,” he said.

Adams further noted that Temenos’ capabilities would play a key role in scaling Interswitch’s services across diverse African markets.

“Temenos delivers on this and brings an unmatched breadth and depth of capability to support our vision and scale our services across the continent,” he added.

On his part, Chief Revenue Officer at Temenos, Williams Moroney, described Interswitch as a key partner in the region and highlighted the strategic importance of the collaboration.

“Interswitch is an important new customer and partner for Temenos in Africa. The collaboration underscores the adaptability of our platform to power innovative banking services tailored to the needs of African markets,” Moroney said.

He added that Interswitch’s extensive footprint across Africa would further strengthen Temenos’ ecosystem and partner network.

Widely recognised for its Quickteller and Verve brands, Interswitch currently operates in 32 African countries and supports more than 300 financial institutions across the continent.

Through its Quickteller platform, the company has played a significant role in shaping digital payments and merchant services in Africa. Its subsidiary, Verve International, a domestic payment cards and token scheme, recently surpassed 100 million issued payment cards, reinforcing its position as one of Nigeria’s leading payment platforms.

The company said the new collaboration with Temenos will further deepen innovation in financial services and support the evolution of more efficient, scalable, and inclusive digital banking systems across Africa.