The Federal Government says it is expanding support for indigenous airlines through improved access to aircraft financing and international routes to boost the competitiveness of Nigerian carriers.
The Minister of Aviation and Aerospace Development, Mr. Festus Keyamo (SAN), said this on Thursday in Lagos at the unveiling of two newly acquired Next Generation (NG) Boeing 737-800 aircraft by United Nigeria Airlines (UNA).
Keyamo said the acquisition reflected the positive impact of reforms introduced by the administration of President Bola Tinubu to reposition the aviation sector.
The aircraft were named in honour of the Obi of Onitsha, Nnaemeka Achebe, and the late Chinua Achebe, renowned author and literary icon.
According to the minister, the administration inherited an aviation industry characterised by disputes, litigation and strained relationships among stakeholders, including airlines, unions and regulatory authorities.
He said one of the government’s early interventions was to promote collaboration among stakeholders and encourage the resolution of disputes to create an enabling environment for industry growth.
“It took about two and a half years for us to begin to reap the fruits of the policy direction that we laid down.
“We did not do it alone. We worked closely with industry players and listened to their concerns before formulating policies,” he said.
Keyamo said support for indigenous airlines remains a major pillar of the ministry’s agenda, noting that government policies are assessed based on their impact on local operators.
“Our focus has been to ensure that policies help airlines such as Air Peace, United Nigeria Airlines and others grow.
“If a policy does not support local airlines, we do not proceed with it,” he said.
The minister disclosed that the government had supported United Nigeria Airlines in securing aircraft financing arrangements through engagements with manufacturers and international financiers.
He added that Nigerian banks, previously reluctant to finance aviation projects, were showing greater interest in the sector due to improved regulatory certainty and increased confidence from global financiers.
Keyamo commended the Chairman of Air Peace, Dr Allen Onyema, for maintaining sound financial discipline, which he said had helped build confidence among aircraft lessors and financial institutions considering investments in Nigeria’s aviation industry.
He also revealed that President Bola Tinubu had approved the establishment of a Nigerian Aircraft Leasing Company to improve local airlines’ access to aircraft through government-backed arrangements.
“Government will provide guarantees that will enable aircraft to be acquired and leased to local operators, thereby reducing the challenges they face in sourcing equipment,” he said.
On international operations, Keyamo said the government was working to allocate additional international routes to United Nigeria Airlines, including services to New York, Canada and Dubai, subject to the availability of suitable aircraft.
He said Nigerian airlines must be empowered to compete effectively on international routes currently dominated by foreign carriers.
“Over 90 per cent of international passenger traffic from Nigeria is still being carried by foreign airlines.
“That market belongs to Nigeria too, and our airlines must participate meaningfully in it,” he said.
The minister defended the government’s decision to support private airlines rather than revive a national carrier, noting that many successful global airlines operate as private commercial enterprises.
He also highlighted efforts to improve aviation infrastructure nationwide, citing plans for the proposed Abia International Airport through collaboration between the Federal Government and the Abia State Government.
Keyamo said the government was also supporting plans to transform the Enugu International Airport into a major cargo hub for the South-East, with discussions ongoing to begin direct cargo flights between Guangzhou, China, and Enugu.
He appealed to Nigerians to continue supporting indigenous airlines amid operational challenges, noting that delays and cancellations were often caused by factors beyond their control, including weather conditions and infrastructure limitations.
He assured passengers of the government’s commitment to improving airline efficiency while maintaining regulatory oversight and consumer protection.
“Our duty is to help these airlines become more efficient and competitive.
“We are not covering up their shortcomings, but we will continue working with them behind the scenes to ensure service delivery improves,” he said.
The Governor of Abia, Dr Alex Otti, commended the airline and expressed optimism that the proposed Abia Airport would serve as the airline’s operational hub.
Also speaking, the Director-General of the Nigeria Civil Aviation Authority (NCAA), Capt. Chris Najomo, said the aircraft was fuel-efficient, suitable for four-hour flights and offers enhanced passenger comfort.
Earlier, the Chairman of United Nigeria Airlines, Prof. Obiora Okonkwo, said the aviation industry was facing significant operational and financial pressures arising from rising costs, aircraft shortages and inadequate funding.
According to him, airline operators are grappling with high costs of training aviation personnel abroad, aircraft maintenance challenges and disruptions arising from equipment failures.
He disclosed that the industry may have lost about N10 billion in the past three months due to disruptions in air travel operations.
Okonkwo said airlines frequently incur substantial costs repositioning aircraft from overseas locations to maintain schedules and minimise inconvenience to passengers.
“In the last three months, the industry may have lost N10 billion occasioned by disruptions in air travel, though this is not peculiar to Nigeria,” he said.
He urged the Federal Government to review the revenue-sharing structure in the aviation sector by allowing agencies to retain a larger proportion of internally generated revenue.
According to him, high remittances to the Federation Account have left aviation agencies and service providers underfunded, limiting their capacity to provide critical infrastructure and support services.
He said improved funding for aviation agencies would reduce operational costs, lower charges imposed on airlines and create a more sustainable operating environment.
Okonkwo, however, expressed confidence in the future of Nigerian aviation.
He said the acquisition of the two Boeing 737-800 aircraft demonstrated United Nigeria Airlines’ commitment to fleet expansion, operational reliability and improved customer service.
Also, Mr Moore Ibekwe, Executive Sales Director for the African Region at Boeing, said the acquisition would enhance the airline’s operational capacity.
Ibekwe also lamented the high cost of aviation financing from commercial banks, noting that interest rates in some countries remain as low as six per cent.
The event attracted aviation stakeholders, airline executives, government officials and traditional rulers, who commended the airline’s expansion efforts and expressed optimism about the future of the aviation industry.(NAN)
