One thing that will help this industry grow is a structured government program that gives local operators access to affordable credit through single-digit loans.
BY ANTHONY OMOH
The Founder of United Nigeria Airlines, Professor Obiora Okonkwo, has urged the federal government to prioritize access to affordable credit for domestic airlines. He warned that operators cannot compete with global rivals who secure loans at interest rates as low as 3 to 5 percent.
“Aviation is a global village, and we compete with airlines that access loans at much lower rates. The government must realize that access to affordable credit is very important to us operators,” Okonkwo said at the airline’s fourth-anniversary celebration in Abuja on Wednesday.
Okonkwo called for a reduction in multiple charges imposed on airlines by government agencies. He described the financial burden as excessive, stating that operators pay nearly 20 different fees to agencies like the NCAA, NAMA, and FAAN.
“One thing that will help this industry grow is a structured government program that gives local operators access to affordable credit through single-digit loans. The charges imposed by different agencies are excessive and affect our ability to reinvest in the business,” he explained.
Despite these challenges, Okonkwo praised President Bola Ahmed Tinubu’s foreign exchange policy, saying it has eased financial burdens in the aviation sector.
“Before Tinubu’s administration, converting naira to foreign currency to meet obligations was a nightmare. Many operators lost contracts and vendors due to the forex crisis. However, the government has now cleared almost a billion dollars in foreign airline funds, restoring Nigeria’s credibility in the global aviation industry,” he noted.
Okonkwo also highlighted the domestication of the Cape Town Convention as a key policy that has reduced operational costs for local airlines. However, he identified unruly passenger behavior as an increasing challenge, noting that some travelers overreact to flight delays.
“The same passengers we work day and night to serve sometimes become aggressive for no justifiable reason. Flight delays happen worldwide, yet here, they are overemphasized. We must work with the media to educate travelers on their rights and obligations,” he stated.
Also speaking at the event, United Nigeria Airlines’ Executive Director and Chief Operating Officer, Mazi Osita Okonkwo, announced the airline’s expansion. He confirmed the addition of Benin, Kano, and Sokoto to its domestic network.
He further revealed that UNA recently renewed its operational certificate. Plans are at an advanced stage for the airline to commence regional and international flights.
While acknowledging recent policy improvements, Okonkwo reiterated the need for financial reforms and regulatory support. He emphasized that reducing operational costs and ensuring access to affordable credit are critical for the growth and sustainability of Nigeria’s aviation industry.
