The Federal Government has restated its commitment to strengthening indigenous airlines through improved access to aircraft financing and additional international routes, as part of efforts to make Nigerian carriers more competitive globally.
The Minister of Aviation and Aerospace Development, Mr Festus Keyamo (SAN), disclosed this on Thursday in Lagos during the unveiling of two newly acquired Next Generation Boeing 737-800 aircraft by United Nigeria Airlines (UNA).
Keyamo said the acquisition was a direct reflection of the positive outcomes of reforms initiated by President Bola Tinubu’s administration to reposition the country’s aviation industry.
The new aircraft were named after the Obi of Onitsha, Nnaemeka Achebe, and the late literary icon, Chinua Achebe.
Speaking further, the minister said the present administration inherited an industry plagued by disputes, litigation and frosty relationships among airlines, unions and regulatory bodies, adding that resolving these issues had taken time but was now yielding results.
“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.
He stressed that supporting local carriers remained central to the ministry’s policy direction, noting that every government decision was weighed against its likely impact on Nigerian 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.
According to Keyamo, the government had played a behind-the-scenes role in helping United Nigeria Airlines secure aircraft financing by engaging directly with manufacturers and international financiers. He noted that local banks, once hesitant to fund aviation ventures, were now showing renewed interest as a result of improved regulatory clarity and growing investor confidence.
He commended the Chairman of Air Peace, Dr Allen Onyema, for his financial discipline, which he said had helped strengthen the confidence of lessors and financiers eyeing investment opportunities in Nigeria’s aviation space.
The minister further disclosed that President Tinubu had given approval for the setting up of a Nigerian Aircraft Leasing Company, which would help local airlines access aircraft more easily through government-backed leasing 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 routes, Keyamo said discussions were underway to allocate more long-haul routes to United Nigeria Airlines, including New York, Canada and Dubai, depending on the availability of suitable aircraft. He maintained that Nigerian carriers must begin to take a fair share of the international market presently dominated by foreign airlines.
“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.
He also defended the government’s decision to back private airlines instead of reviving a national carrier, pointing out that many top global airlines operate successfully as private enterprises.
On infrastructure, the minister mentioned ongoing collaboration with the Abia State Government towards the proposed Abia International Airport, as well as plans to position the Enugu International Airport as a cargo hub for the South-East, with talks reportedly ongoing for direct cargo flights between Guangzhou, China, and Enugu.
He appealed to Nigerians to remain patient with local carriers, noting that some of the disruptions experienced were due to factors beyond the airlines’ control, such as weather and infrastructural limitations.
“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.
Speaking at the event, Abia State Governor, Dr Alex Otti, commended the airline’s expansion drive and expressed confidence that the proposed Abia Airport would eventually serve as a base for the carrier’s operations.
Also speaking, the Director-General of the Nigeria Civil Aviation Authority (NCAA), Capt. Chris Najomo, described the newly acquired aircraft as fuel-efficient and well suited for four-hour flights, with improved comfort for passengers.
Earlier in his remarks, the Chairman of United Nigeria Airlines, Prof. Obiora Okonkwo, painted a picture of an industry under serious financial and operational strain, citing rising costs, aircraft shortages and inadequate funding as major setbacks.
He said airlines were contending with the high cost of training personnel abroad, recurring maintenance challenges, and frequent equipment failures, all of which continue to disrupt operations.
According to him, the industry may have lost about N10 billion in the last three months alone due to such disruptions, adding that airlines often incur huge costs repositioning aircraft from abroad just to keep schedules running and reduce passenger inconvenience.
He called on the Federal Government to revisit the revenue-sharing arrangement within the aviation sector, advocating that agencies be allowed to retain more of their internally generated revenue to ease funding constraints.
Okonkwo argued that the current high remittances to the Federation Account had left aviation agencies underfunded, thereby limiting their ability to provide essential infrastructure and support services. He maintained that better funding for these agencies would, in turn, reduce operational costs and charges imposed on airlines.
Despite the challenges, the UNA chairman expressed optimism about the future of Nigerian aviation, describing the new aircraft acquisition as proof of the airline’s commitment to fleet expansion and improved customer service
Also speaking at the event, Mr Moore Ibekwe, Executive Sales Director for the African Region at Boeing, said the acquisition would significantly boost the airline’s operational capacity. He, however, lamented the high cost of aviation financing from Nigerian commercial banks, noting that interest rates in some other countries remain as low as six per cent.
The event was attended by aviation stakeholders, airline executives, government officials and traditional rulers, who lauded the airline’s expansion efforts and expressed optimism about the trajectory of Nigeria’s aviation sector.