Keyamo Strives to Correct Perceived Risk at Airline Economic Conference

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Minister of Aviation, and Aerospace Development, Festus Keyamo

BY ANTHONY OMOH


The Airline Economic Conference in Dublin, presented an opportunity to tackle the lingering issue of perceived risks in Nigeria’s aviation. Represented by the Minister of Aviation and Aerospace Development, Festus Keyamo, the Nigerian delegation used the platform to challenge misconceptions and advocate for fairer treatment globally.  Invited by Boeing, Nigeria’s participation underscored its aim to better Nigeria’s aviation ecosystem.

Speaking at the Fireside Chat, Keyamo highlighted that Nigerian airlines face significantly higher insurance premiums—between 10% and 20% more than their counterparts in other jurisdictions. He attributed this disparity to perceived risks in Nigeria aviation, which he described as exaggerated and disconnected from the reality of operations within the country. “Our airlines consistently meet their financial and operational obligations, particularly under Aircraft, Crew, Maintenance, and Insurance (ACMI) arrangements, and defaults are minimal,” he stated, reinforcing the reliability of Nigeria’s aviation sector.  

The Minister emphasised the sector’s resilience, underpinned by a robust travelling population and financially responsible airlines. He noted that such strengths were often overlooked in global assessments. To address these challenges, Keyamo announced collaborative efforts with local and international insurance stakeholders. Discussions at the conference centred on strategies to place risks within the Nigerian market or through internationally recognised bodies like Lloyd’s of London, aiming to reduce the financial burden on Nigerian carriers.  

Another significant concern raised was the excessive withholding tax imposed on Nigerian airlines. At 10%, this tax far exceeds the rates paid by airlines in other regions, further eroding the already narrow profit margins within the industry. Keyamo reassured stakeholders of ongoing regulatory measures to address this inequity, fostering a more sustainable operational environment for Nigerian carriers.  

Despite these hurdles, Keyamo remained optimistic about the future of Nigeria’s aviation industry. He underscored the need to reshape global narratives surrounding perceived risks in Nigeria aviation, advocating for a more accurate portrayal that recognises the country’s operational safety, financial responsibility, and growth potential.  

Keyamo also outlined Nigeria’s vision to become Africa’s premier aviation hub. He highlighted the nation’s unique advantages, including its geographical position, population, and ambition. “We are naturally placed to be the hub of Africa. While Ethiopia has advanced with a large and ambitious airport, Nigeria remains better positioned due to its equidistant location to all parts of the world,” he stated.

Keyamo also stressed the importance of airport expansion and management reforms in achieving this vision. “We are driving ourselves to the limit in trying to achieve that. We have ambitious plans to concession our airports and expand them to be bigger. Most of the world’s largest airports are not run by governments,” he explained.

Ultimately, Keyamo expressed confidence in the outcomes of Nigeria’s engagements at the Airline Economic Conference. He noted that collaborative efforts with global and local stakeholders would not only lower costs but also enhance the financial viability of Nigerian airlines. By addressing these challenges, the country aims to strengthen its position in the global aviation sector and establish itself as a reliable partner.  

The Airline Economic Conference demonstrated Nigeria’s commitment to tackling structural challenges and correcting misconceptions. Through proactive measures and international collaboration, the nation seeks to ensure its aviation sector is both competitive and sustainable, effectively dispelling the notion of perceived risks in Nigeria aviation.  

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