Stakeholders in the Nigerian Aviation industry have urged the federal government to discontinue the policy requiring 50 percent of internally generated revenue from aviation agencies to be remitted to the federation account.

This was contained in a communiqué issued at the 28th Annual Conference of the League of Airport and Aviation Correspondents (LAAC) with theme: Aviation Survivability Amidst a Challenging Macro-Economic Environment, held at Providence Hotel, GRA, Ikeja, Lagos, Friday, July 26, 2024.

The stakeholders noted that discontinuing the policy requiring 50 percent of internally generated revenue from aviation agencies to be remitted to the federation account
would allow agencies like the Federal Airports Authority of Nigeria, FAAN, Nigerian Airspace Management Agency, NAMA, and the Nigerian Civil Aviation Authority, NCAA, to reinvest in infrastructure and developmental projects.

Stakeholders at the conference emphasized the need for support towards a five-point agenda of the Ministry of Aviation and Aerospace Development, which includes safety, infrastructure enhancement, support for local operators, optimization of revenue generation, and establishing Maintenance, Repair, and Overhaul (MRO) facilities.

They highlighted the necessity of drafting laws that reflect the Cape Town Convention to ensure transparency in aircraft leasing.

The forum stressed the importance of a strong insurance policy given Nigeria’s high-risk status.

The stakeholders called for a balance between investing in new airports and improving road networks to support overall transportation infrastructure.

The aviation stakeholders also Identified hyper-inflation and economic difficulties as major impediments to the aviation industry’s survival.

Other key positions highlighted in the communique include: Operational, regulatory challenges, and inefficiencies and policy flip-flops, that hinder industry growth, the need for better time management and policy consistency, the need for a central data system to provide accurate and harmonized data for the aviation industry, regulations that ensure safety and security without strangling the airlines.

Others are the importance of corporate governance, infrastructure improvement, and reducing dependence on foreign exchange, efficiency, affordability, collaboration, and the use of technology to enhance service delivery.

The conference recommended the reviewing of aviation regulations to reflect emerging trends in the sector.

The Panel session highlighted the need for stakeholders’ forums with the presence of all relevant parties to address industry challenges collectively.

It recommended annual agency/industry reports to track progress and ensure accountability.

Other critical resolutions include: Operational Efficiency and Cost Management, Prioritizing, streamlining processes, optimizing resource allocation, and embracing technology to enhance operational efficiency and manage costs effectively, Infrastructure Development, Investment in modern and robust airport infrastructure as a crucial tool for industry survival and growth, Pricing and Affordability, Implementing efficient pricing of products and services to enhance affordability, drive competition, and support infrastructure development, Innovation and Technology, adopting innovative and technological approaches as key strategies for improving industry survivability, collaborations and partnerships.

Others include, to foster partnerships among airlines, air navigation service providers, airports, regulatory bodies, and other stakeholders to tackle industry challenges collaboratively.

The stakeholders also called on the authorities to address anti-competitive practices such as unfair pricing, delays without refund, poor service delivery, and inadequate redress mechanisms,
including ensuring policy consistency and avoid policy somersaults to sustain the industry.

They urged the government to create a favorable environment for business without interfering in the day-to-day affairs of the industry.

On industry Networking, the conference encouraged the aviation industry to build relationships with other sectors to boost networking and economic interconnectivity .

On revenue optimization, it called for the optimisation of revenue generation through code sharing, interlining, and dealing with cost-inducing areas including the area of risk reduction by sharing expertise and acquiring market intelligence.

On Private Sector engagement, the forum charged the authorities to engage the private sector more actively to equip the industry with necessary infrastructure, acknowledging that government funding alone is insufficient.

The 28th Annual Conference of the League of Airport and Aviation Correspondents (LAAC) underscored the critical need for concerted efforts and strategic collaboration to navigate the challenging macro-economic environment facing Nigeria’s aviation industry.

The resolutions and strategies outlined in the communiqué aim to enhance operational efficiency, optimize resources, and ensure the industry’s long-term sustainability and growth.

The annual conference is convened with the aim of addressing the pressing challenges faced by the aviation sector in Nigeria.