Stakeholders examine the aviation industry and propose a way forward
Following the slow recovery of the aviation sector from the covid-19 pandemic and the socio-economic challenges plaguing the sector, stakeholders in the aviation sector in Nigeria converged on Lagos yesterday to chart a new course. to follow for the sector.
“The current economic situation, the scarcity of foreign exchange, the rise in inflation and the lack of infrastructure are factors that afflict the sector. To chart a new direction for the sector, all stakeholders have a role to play,” said Osayaba Giwa-Osagie, President of the Nigeria-South Africa Chamber of Commerce (NSACC), at the October breakfast. of the NSACC sponsored by Phillips Consulting to celebrate its 30th anniversary.
He further said that the government should consider stimulus packages to help airlines facilitate their operations. According to him, there is a need for the government to implement policies and develop infrastructure that will strengthen the sector.
“Additionally, stakeholders should constantly engage the government on ways to reposition the sector to be profitable and competitive. Air operators should adopt creative initiatives to help manage costs and increase efficiency,” said Giwa-Osagie.
According to him, the aviation industry is a real tool for income generation and economic development in Nigeria. “The Nigerian aviation industry has grown in size, capital, investment, safety and quality management system. The sector is fundamental to facilitating trade, investment and tourism.
“According to the National Bureau of Statistics, the aviation industry contributed at least N117.3 billion to the Nigerian economy during the first half of 2022. The Bureau, in its Gross Domestic Report of Nigeria for the second quarter of 2022, has said the sector raised 84.7 million in the first quarter and 32.6 billion in the second quarter,” Giwa-Osagie said.
George Uriesi, COO of Ibom Air and guest speaker at the breakfast, said domestic airline operators need to be creative to access capital. According to him, airlines need a level playing field to prosper.
Speaking on ‘Aviation in Nigeria: What Next? Uriesi said there was a need for industry players to adopt good corporate governance in their day-to-day operations. “We have the market to thrive,” he said.
Samuel Bamidele, Head of Research and Intelligence, Phillips Consulting Limited (pcl), said
Nigeria’s aviation industry is growing and recovering from the pandemic faster than expected globally. He added that while there are several pressure points or challenges faced by industry operators, pcl expects the industry to continue on a positive trajectory.
“One of the strengths of the Phillips Consulting (pcl.) aviation survey report is low industry capacity, which we infer from the challenges passengers face in obtaining urgent tickets and the costs additionally, we found that 16.24% of survey respondents do not prefer any airline, indicating that existing competition and potential new entrants are strong challengers for market share. Bamidele said.
Paul Ayim, Senior Partner, pcl, said the company launched the Aviation Center of Excellence (CoE) as a vehicle to research and disseminate industry best practices and facilitate alignment of the structure, processes, people and measures on the strategy. “The CoE draws on our 30 years of experience supporting customers and stakeholders in the Nigerian aviation industry with transformational projects and initiatives.”
Dele Phillips, Business Partner, pcl, said the company will continue to serve as a center of excellence to achieve its growth trajectory as a people and for the nation. “I was lucky enough to see pcl take off 30 years ago. Since then, we have taken off to accomplish many great things in the clear skies.
“This great place to work is more than just an organization, but also a haven for over 200 former members who have been there and given pcl their very best. We thank everyone who has been part of our success and look forward to a bold future of transformative possibilities with you,” said Philips.