Aircraft owners seek cheaper funding for local airlines

The President of the Aircraft Owners and Pilots Association of Nigeria (AOPAN), Dr. Alex Nwuba, has urged the Federal Government to create cheaper funding options for the aviation sector to help local operators remain competitive globally.

Nwuba made the call on Wednesday during the maiden Transport Summit organised by JustAlive Communications Ltd. in Lagos.

“The event had the theme: “Nigeria’s Transport Infrastructure Innovation for a Sustainable Future.”

He stressed that while the aviation industry is inherently profitable, high operating costs and unfavourable financial structures continue to hinder its growth.

“We must change the narrative that aviation is unprofitable.

“It is highly profitable, but we need to remove the cost structures that are holding it back,” Nwuba said.

He proposed the establishment of a national aircraft leasing company to enable local airlines access affordable aircraft financing.

According to him, the government could procure about 500 airplanes and make them available to domestic airlines at a low-interest rate of four per cent.

“If an airline fails, there’s no problem; there will always be another ready to take its place,” he added, lamenting that Nigerian airlines currently borrow at interest rates between 28 and 34 per cent, which severely cuts into profits.

Nwuba further revealed that about 47 per cent of airlines’ revenues go into fuel purchases, significantly increasing operational costs.

Similarly, the Chief Executive Officer of Aero Contractors, Capt. Addo Sanusi — represented by the Head of Sales, Mr. Femi Oluwafemi — blamed inconsistent government policies for rising airfares in the country.

He noted that many local airlines urgently need financial support to enhance service delivery and expand operations.

Speaking on airport facilities, Sanusi said: “We have made improvements at international airports, but our local airports need much more attention.

“We must reduce processing times and improve the overall passenger experience.”

He emphasised that the challenges facing the aviation industry require collective action, not just from airline staff but from all stakeholders in the sector.

Also speaking, the Chief Operating Officer of Bi-Courtney Aviation Services Ltd., operators of the Murtala Muhammed Airport Terminal Two (MMA2), Mr. Remi Jibodu, highlighted the terminal’s forward-looking infrastructure and strong security systems.

He underscored the importance of maintaining robust security infrastructure at all airports nationwide.

The summit was chaired by Mr. Fola Tinubu, Chief Executive Officer of Primero Transport Services Ltd., and attended by key stakeholders across Nigeria’s transport sector.