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FG eyes revival of national carrier plans

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By Samuel Abimbola

Amid industry concerns, the failed Ethiopian deal sparks this fresh debate.

The Federal Government has signalled its intent to revive plans for a national carrier following the suspension of the Nigeria Air project. This development comes amid growing industry concerns and controversies surrounding the failed partnership with Ethiopian Airlines. Dr. Ibrahim Abubakar Kana, the newly appointed Permanent Secretary in the Ministry of Aviation and Aerospace Development, emphasised the administration’s continued interest in a national carrier project, though under terms favourable to Nigeria. While addressing questions about his earlier remarks on a presidential mandate for the project, Kana clarified that his statements were misinterpreted.

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He affirmed that the revival of a national carrier remains a potential priority under the administration of President Bola Ahmed Tinubu and Aviation Minister Festus Keyamo. His comments note the Tinubu government’s focus on innovative and sustainable aviation policies aligned with the Renewed Hope Agenda. Meanwhile, Festus Keyamo, who assumed office as Minister of Aviation two years ago, had suspended the Nigeria Air project earlier, citing the Ethiopian Airlines agreement as a poor arrangement for Nigeria. He revealed that the deal would have allowed the Ethiopian government to dominate the country’s aviation ecosystem through its 49% stake in Nigeria Air.

Keyamo’s stance and long-standing struggles with domestic carrier plans.

This raised concerns over sovereignty and economic benefits, as foreign interests would profit disproportionately from the nation’s aviation routes. Keyamo strongly criticised the agreement, comparing it to Ethiopian Airlines’ similar operations in smaller nations like Togo. He argued that Nigeria’s size and ambitions require an indigenous Airline wholly committed to advancing national interests. His remarks have raised fresh debates about whether the nation should seek an entirely new partnership or explore alternative approaches to establishing a national carrier.

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Efforts to restore a domestic carrier have faced significant hurdles since the liquidation of Nigeria Airways in 2004. Billions of Naira have been expended on various initiatives over the years, with little accountability for the funds. Former Aviation Minister Hadi Sirika defended expenditures under his tenure, stating that only ₦3 billion of the ₦5 billion budgeted for Nigeria Air was utilised. The funds reportedly went toward office acquisitions, consultancy fees, and certification processes. However, the lack of tangible outcomes has drawn criticism from stakeholders and the public alike.

BASA routes and their implications for Nigeria’s aviation industry.

Despite these challenges, considerable support remains for a domestic operator within the aviation community. Some experts, like Group Capt. John Ojikutu has proposed establishing two flag carriers instead of one. He suggested that regional and intercontinental airlines with diversified ownership structures could better serve the industry. His recommendation includes a 40% stake in airlines, 12% for the government, and significant Investment opportunities for private entities. A key consideration in the debate over a local operator is Nigeria’s Bilateral Air Services Agreements (BASA). These treaties regulate air transport between nations, specifying routes, flight capacities, and competitive terms.

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Some argue that Nigeria’s BASA agreements often favour foreign airlines, limiting opportunities for domestic airlines. This imbalance has stymied the growth of local airlines and undermined the nation’s ability to capitalise on its aviation potential. For solutions, the government’s renewed focus on a domestic operator could provide an opportunity to reassess these agreements. The administration aims to create a more equitable and competitive aviation environment by renegotiating BASA terms and prioritising local carriers. Such reforms would promote the local industry and enhance the country’s standing as a key player in regional and international air transport.

Related Article: Keyamo vows to raise global aviation rating

Lastly, the Tinubu administration’s aviation strategy underscores the need for a pragmatic approach to achieving a sustainable local operator. Collaborating with private Investors and aligning with international best practices will be crucial to overcoming past setbacks and achieving new goals. The emphasis on transparency, fair competition, and long-term economic benefits suggests a shift toward a more strategic aviation policy framework. As discussions continue, the future of the nation’s national carrier remains a pivotal issue with implications for national pride, economic growth, and regional influence.

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