Mr. Olaniyi Adigun, the Chairman of the Aviation Ground Handling Association of Nigeria, says the aviation industry could take a cue from the financial sector, which had evolved with collaboration and consolidation. According to him, without believable data, collaboration and consolidation, the Nigerian aviation industry would continue to lag behind.
Adigun was a panelist at the 28th League of Airport and Aviation Correspondents (LAAC) annual conference in Lagos. The event was themed ‘Aviation Survivability Amidst a Challenging Macro-Economic Environment.’ Meanwhile, he regretted that the sector was yet to be taken as a critical business, as it is done elsewhere. However, with the skyrocketing rate of the dollar against the naira, he explained, it was clear that no organization or airline could go it alone. He warned that without partnership, businesses in the sector would continue to collapse.
He said, “It is not rocket science that the industry is where it is today; the dollar is rising against the naira. We all need to know that aviation is business and, when we talk about business, we talk about profitability and data collection.” How do we sustain the Nigerian aviation business? We need to have an economic summit where we open the doors to investors. We need to open up. What are these challenges facing us? This is very important. We cannot continue to standalone.
“Also, are we trading among ourselves? We are not! I can have an Automated Teller Machine (ATM) card of a particular bank and use it in another bank’s ATM machine. If I book for instance with Aero Contractors, can I use it on Air Peace? We don’t have such a close relationship. We need to collaborate among ourselves.
“Yes, the Minister of Aviation can advocate for dry leasing and not welcome wet leasing, but the fact is, are the operators doing business among us? There is the need for us to look inward, collaborate, consolidate, and stand together.”
On the lack of adequate data gathering in the sector, Adigun wondered why this had become a herculean task. He further emphasized that government agencies in the sector release different data to investors, causing confusion and inconsistency. Without authentic data gathering, the Nigerian aviation industry would continue to grope in the dark, he stressed.
Moreover, he called on the respective government agencies to address this issue urgently. Especially the Nigeria Civil Aviation Authority (NCAA) should emulate its counterpart in the financial sector, the Central Bank of Nigeria (CBN). By spearheading the release of believable data, the industry would be better informed.
Additionally, he explained that this would enable investors and prospective investors to plan ahead in their businesses.
“I was very happy when someone spoke about data. You can’t do business without data. The CBN forecasts in the banking industry and it can tell you the growth or diminish rates in the sector, but who is doing that in the aviation industry? How do we get the data? And without data, you cannot do business at all. It is good for us to look inward and talk figures. Aviation is about business. What you sell is about air safety and security,” he said.
