The Nigeria Civil Aviation Authority has emphasised that adequate funding is crucial to ensuring operational safety in the aviation industry. Acting Director General of Civil Aviation, Capt. Chris Najomo stressed that high interest rates on aviation loans greatly impact operators’ ability to sustain growth while ensuring safety standards. This statement was made during a one-day civil aviation conference focused on economic viability and financial sustainability in Nigeria’s aviation industry.
During the conference, Najomo, represented by Capt. Donald Spiff, Director of Operations and Licensing Standards, outlined the summit’s objectives.
Najomo explained, “The specific objectives of this summit include uniting critical stakeholders to advocate for adequate funding and operational safety.” He added that it aims to review service standards, match international standards, and secure commitments for sound financial management practices.
According to Najomo, these efforts are in line with the Minister’s 5-point agenda for transforming the aviation sector.
The need to address financial sustainability within the industry was a recurring theme. High interest rates on aviation loans were highlighted as a major challenge by several speakers. Keynote speaker Innocent Ike, Group Managing Director/CEO of Polaris Bank Limited, elaborated on the financial obstacles plaguing the sector. He indicated that high interest rates on aviation loans, currency fluctuations, and regulatory uncertainty create barriers to financing aviation infrastructure. “Despite the challenges, several funding solutions exist. Government tax incentives, airport development subsidies, and guarantees for aviation bonds,” Ike noted. He advocated for investor education to improve market participation, stressing the importance of fostering market confidence and expanding infrastructure development.
Innocent Ike emphasized that, despite the financial risks involved, the aviation sector offers many opportunities for growth. He highlighted growing air travel demand, the urgent need for infrastructure development, and the potential for expanding regional connectivity. These he noted were areas with substantial growth prospects. According to him, addressing financing hurdles would ultimately position Nigerian aviation for sustainable development and global competitiveness.
Meanwhile, stakeholders have urged the Central Bank of Nigeria (CBN) to address high interest rates on aviation loans impacting airlines. These stakeholders, including airline operators and experts, agree that Nigerian aviation has significant potential for national income growth and economic development. Unfortunately, this potential remains largely untapped due to financial constraints, especially high loan rates hindering effective operational scaling for operators.
Stakeholders highlighted that addressing high interest rates on aviation loans would enable airline operators to optimize services and enhance safety.
They argued that financial relief, whether through lower interest rates or flexible loan terms, would benefit airlines and strengthen the aviation value chain.
Moreover, the conference served as a platform for government officials, financial experts, and aviation stakeholders to discuss strengthening the industry’s financial framework.
