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Aviation requires US$50 bn to grow in 28 years-Chidoka

Nigeria will require a whooping US$50 billion investment to grow the aviation sector in the next 28 years according to the words of Aviation Minister, Osita Chidoka.
This is as he declared that the industry was underperforming contributing  $0.7 billion (N137.9 billion) to the country’s Gross Domestic Product (GDP) even as the current GDP in Nigeria was US$80.3 billion (N15, 819 trillion).
Minister of Aviation, Osita Chidoka
He described the aviation industry as being underutilized.
Chidoka spoke yesterday at one day Aviation Executives Business Forum ( AEBF) in Lagos however said  that Nigerian aviation sector would not grow owing largely to low direct investment , funding deficiencies untapped regional opportunities for domestic airlines.
He said the aviation industry could only grow if there are appropriate policies, financial incentives, increased foreign direct investment, stimulation of local direct investment, reduction of industry risks, as well as expansion of aviation financing by banks tailored for the sector’s requirement.
Chidoka said,” We have weak corporate governance in the industry,  poor incentives for private sector participation. That is just exactly what the Nigerian aviation industry needs. By introducing some initiatives, we are beginning to feel the pulse of the industry.”
“Among other initiatives we strongly believe that the industry also needs an economic stimulus to drive it even faster than expected,’’ he said.
Chidoka explained that economic stimulus for aviation would involve a package of financial incentives and support across the aviation value chain.
He noted that the key areas to focus on were the aerodrome infrastructure and operation, airline operations and safety.
Also the aviation allied services, airspace management and manpower development.
Also speaking, the Secretary General of African Airlines Association (AFRAA), Dr Elijah Chingosho said many airlines have failed in African due to lack of consolidation among carriers.
He said airlines in Africa would not do well if they operate in fragmented industry.
He said the graveyard of dead airlines is full because many African carriers have failed to forge mergers and partnership.
He said:” In a fragmented industry there will be more casualties of airlines. The grave yard of dead airlines is full. I urge African airlines to stop contributing to the number. The way forward is through partnerships. The days of small carriers are gone.
It is for this reason that Nigeria should take its rightful position to grow a vibrant industry where activities are abuzz.
Lack of liberalisation remains a major stumbling block to the development of the aviation industry.”
Dr. Elijah Chingosho, Secretary General, African Airlines Association (AFRAA), noted that African aviation share of global traffic is very small at around three per cent.
Chingosho said West and Central Africa region is the worst served in terms of connectivity and tourism.
According to him, none of the major airline hubs feature in this region.
He, however, said that there are some airlines trying their best to survive in a fiercely competitive environment which is dominated by non-African mega-carriers.

He explained that the Industry consolidation was critical; otherwise we would continue to see more airlines going under.

About anthony omoh

I am a Journalist with a passion for developmental stories and nigerianflightdeck.com was born out of passion for reporting the travel, business and aviation sub-sector. This site is an expression of my ideals and creativity as a reporter and my discretion as a publisher. I am extremely content doing this and I am sure when you read my stories you'd understand that I touch people and that's why

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