In August 2023 when Festus Keyamo, a Senior Advocate of Nigeria (SAN), was assigned the portfolio of Nigeria’s Minister of Aviation and Aerospace Development, he identified many unresolved issues in the sector.
These included the controversial Nigeria Air project, concessioning of airports, dollar scarcity and profit repatriation concerns, high cost of aviation fuel, and multiple taxation.
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Other contentious issues include rising airfares, law enforcement and safety concerns, flight delays and cancellations, encroachment on airport lands, insufficient transportation services, touting and hawking at airports, and corrupt practices.
These setbacks have hindered the operational schedule of some airlines (domestic and international) in the country.
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In this analysis, PREMIUM TIMES presents some notable happenings/events that shaped the country’s aviation sector in 2024, and also highlights some projections for the coming year based on recent trends.
Management issues
In January, Mr Keyamo approved the relocation of the Federal Airports Authority of Nigeria (FAAN) headquarters from Abuja to Lagos. He cited, among other reasons, a need to curb waste of public resources and prevent the rot of FAAN’s abandoned Lagos building.
The minister explained that officials of the agency spent about N1 billion in 2023 on Duty Tour Allowance (DTA) and air tickets for travels between Abuja and Lagos.
In February, the minister also ensured the swift repair and reactivation of the Lagos Airport Second Runway (18R), which had been out of service for almost a year.
Funds repatriation
Amidst funds repatriation difficulties faced by international airlines operating in Nigeria over the past two years, in March, the federal government announced the clearance of the longstanding backlog of trapped funds for foreign airlines.
The move resolved an issue that had persisted for years, boosting international airlines’ confidence to resume flight operations in the country. It also prompted Emirates Airlines, which suspended operations over a year ago, to announce the resumption of flight services to Nigeria.
Safety concerns
Due to safety concerns, the federal government took punitive measures against some airlines in 2024. In April, the government halted Dana airline’s operations and also issued warnings to defaulting airline operators and unprofessional passengers.
Several airlines experienced abnormal landings and takeoffs, with some aircraft reported to have skidded off the runway and engines catching fire. These incidents, and other unprofessional practices observed across major airports prompted the government to launch measures to improve safety across airports.
Meanwhile, due to perceived revenue problems, in May, Mr Keyamo obtained approval from the Federal Executive Council (FEC) to withdraw the ticket payment exemption granted to highly placed Nigerians at the nation’s airports.
“The ministry has been losing huge revenue that ordinarily should not be. With the new system, everybody coming into the nation’s airports must pay the toll gate fees. Already the president and the vice president have agreed to be part of those that would pay,’’ Mr Keyamo said at the time.
Similarly, in June, the minister inaugurated an eight-member ministerial task force committee on “illegal private chartered operations and related matters” to address alleged money laundering, drug trafficking and other illegal activities by private jet operators in Nigeria.
In the face of these sharp practices, the Nigeria Civil Aviation Authority ( NCAA) in July suspended the licences of 10 private jet companies that violated regulations.
Consequently, following a significant surge in flight delays and cancellations, the NCAA sought to sanction airlines over their inability to make refunds for cancelled or delayed flights spanning more than five hours.
Bilateral agreements
To strengthen bilateral relations with other countries, the federal government commenced the process of activating the Bilateral Air Service Agreement (BASA) to establish direct air connectivity between Nigeria and Brazil.
The government also signed, in August, a Memorandum of Understanding (MoU) with an American aerospace company, Boeing, to enhance sustainable development in the country’s aviation sector.
Among several other benefits, Mr Keyamo noted that the deal will provide technical support by providing access to Boeing data such as maintenance documents, engineering drawings, parts purchasing, and flight operations documents to streamline maintenance practices in the country.
Air Peace UK breakthrough and CEO’s corruption saga
Air Peace, a Nigerian indigenous airline, commenced flight operations from Lagos to Gatwick Airport in London on 30 March. It eventually got approval from the aviation minister to include Abuja in its London route.
Air Peace’s entry into the Lagos-London route forced other airlines to adjust the flight prices on that route. However, shortly after, the UK Civil Aviation Authority reported Air Peace to the Nigeria Civil Aviation Authority (NCAA), over the airline’s alleged non-compliance with some safety regulations in the UK.
But in its reaction, the Nigerian government declared its support for Air Peace Airline.
Also, in October, PREMIUM TIMES reported that the United States government added more charges to the $20 million bank fraud case against Allen Onyema, the CEO of Air Peace, as the Nigerian businessman continues to elude trial in an American court.
Although Mr Onyema denies wrongdoing, he is wanted in the US over the bank fraud charges filed against him and a co-defendant at the District Court for the Northern District of Georgia, in Atlanta since 2019.
Trial of former aviation minister Sirika
In May, the Economic and Financial Crimes Commission (EFCC) arraigned Mr Keyamo’s predecessor, Hadi Sirika, on charges of abuse of office in award of contracts, including the failed Nigerian Air project, while in office.
Mr Sirika was arraigned alongside his daughter, Fatima, and her husband, Jalal Hamma, as well as their company, Al Buraq Global Investment Ltd, at the Federal Capital Territory (FCT) High Court in Maitama, Abuja.
The former minister and his brother, Ahmad Sirika, were also charged over fraudulent contracts worth billions of naira.
Helicopter Crash
In October, a helicopter operated by East Winds Aviation lost contact while flying from Port Harcourt to its Floating Production Storage and Offloading (FPSO) Antan oil production facility. The helicopter went down into the Atlantic Ocean near Bonny Finima, off the coast of Calabar, killing all eight members onboard.
Airport concession
The Nigerian government in October announced that it will concession five airports, about a year after an initial move to execute the plan was shelved.
The five international airports were the Nnamdi Azikiwe International Airport, Abuja, Murtala Muhammed International Airport, Lagos, Port Harcourt International Airport, Aminu Kano International Airport, and Akanu Ibiam International Airport, Enugu.
As the country’s aviation sector grapples with these challenges, experts argue that the Nigerian government and relevant stakeholders must work together to invest in infrastructure development, increase funding, improve regulatory oversight, focus on safety, and implement good management practices to achieve sustainable growth.
