Nigerians are patiently watching and waiting for government to deliver on its promise to complete the national air project in 2022. But is this feasible amidst glaring impediments?
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Nigeria Air (Lagos) is a newly proposed national carrier, and it will be financed and managed by a private sector. The government is also anticipating to hold about five percent of its shareholding.
According to a reliable source, the private sector consortium may partner reputable international airlines, leasing companies, aircraft manufacturers, financial, and institutional investors.
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The source also revealed that the government would provide the required support by creating an enabling environment for sustainable policies, allocation of routes. Besides, the government is also expected to make provision for financial guarantees, and ensuring fiscal incentives to sustain the success of the airline.
It will be recalled that in 2018 the national carrier and its christening in London set the Minister of Aviation, Hadi Sirika on a collision course with the Nigerian public. Harsh criticisms greeted the roll-out at the Farnborough Airshow in London because of the suspension of the launch earlier scheduled for December 24, 2018. It was alleged that the project logo design gulped N80 million, but the minister debunked the claim, saying that less than N10 million was allegedly spent on the logo design.
According to sources, the Federal Executive Council (FEC), allegedly did not back the proposed airline because the project was not captured in the 2018 appropriation law, and so the project has since been rattling-up votes.
Notwithstanding, the legacy project again received attention in the 2019 budget. The project reportedly received a whopping sum of between N8 billion and N47 billion, and an additional N500 million for its advisers on the transaction. The 2020 budget it was gathered also allocated N4.6 billion for its working capital, while the 2021 appropriation added another N1 billion to the working capital of the project. Additionally, the 2022 budget recently proposed to the National Assembly voted N400 million for the airline, with an additional N150 million as consultancy fee.
According to the government, the initial plan to establish a national carrier in 2021 was stalled by the outbreak of the COVID-19 pandemic, but allegedly expressed optimism that the project would be completed in the first quarter of 2022.
The Minister of Aviation reportedly disclosed that Nigeria has a massive market and a population to sustain an airline venture. She noted too that updates would be provided on the progress of the project after the next presentation to FEC.
But the question is, can the Nigeria Air project still fly after the2018 fiasco?
Because there are yet doubts from many Nigerian commentators and watchers on whether the logo and design and the proposed plans will translate to actual airplane leases and airport gate slots.
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Although there is suppressing demand for more air travels in Nigeria, as it is currently an inadequately serviced market, the Nigeria economy is faced by a myriad of pressing problems. Such encumberances range from epileptic electricity supply, insecurity, insurgency, political instability and lack of basic infrastructure to crushing poverty. The running of airlines is very demanding, and the Nigerian government does not seem to have a commendable track record in the aviation industry. Privately-owned Nigerian airlines are struggling to remain afloat, and even some that cannot withstand certain daunting challenges eventually prematurely collapsed. So, it is not just about commencing the project but having the resources to sustain it because sustainability is very imperative in any project execution.
There are cases of incessant increase in flight fares, as well as flight cancellations. There are delays, poor-onboard services, poor customer relations, missing luggage, huge staff outlay and poor equipment maintenance and breakdowns. And even though these shortcomings are universal air transport problems, Nigeria’s case is aboriginal. Wikipedia (2014) reported that the carrier had accumulated significant debts that outstripped its revenues virtually from the mid-1980s. It added that the carrier had an over-bloated workforce, plied some routes thought to be unprofitable because it wanted its presence felt in those routes. Many are also of the opinion that lack of concern over the type of air craft and the quality of the leasing company have constituted many challenges to free operation of the Nigeria Airways in some locations. The airline has also been allegedly accused of being plagued by mismanagement, corruption, and overstaffing. And even the government of Nigeria has transited from one form of national carrier to another. It is still transiting and yet the airlines are still having challenges that may lead to their demise.
In spite of these setbacks, however, the government is still committing funds to a project that has allegedly gulped N14.7 billion in three years. Recently, the Federal Government again reportedly disbursed another N6.25 billion for consultancy and advisory partnership towards revitalisation of the project.
What then are the options for the Nigerian government, and what organisational changes if any should the government consider making? How can a national carrier be best positioned to serve its citizens as well as other passengers of the world? Can Nigeria successfully operate a national carrier and position itself as a high quality service provider when a number of players in the industry feel otherwise? What factors are inhibiting improved airline services and how? Is there really any need for a national carrier? All of the questions raised in the foregoing are begging for realistic policy implementation, so as to prevent the national carrier from becoming a conduit pipe for draining our scarce resources.
But truth be told, having a national carrier will help to bridge infrastructural deficit. Because according to the World Bank, every one per cent of government funds spent on infrastructure leads to an equivalent one per cent increase in the Gross Domestic Product (GDP). And so a national carrier would, to a great extent, help in reducing infrastructure deficit by providing regular, affordable transportation to major cities across the country.
