The Coronavirus pandemic constricted global economy, paralysed the aviation industry, but each country recovered according to the severity of the cases it had. Nigeria was one of the countries that recovered quickly from the pandemic and restarted its air transport after the lockdown. Chinedu Eze writes that after hiccups occasioned by high cost of aviation fuel and scarcity of forex, 2022 was a year of hope for the air transport sector.
Domestic flights resumed in July 2020 in Nigeria, but COVID-19 protocols both at the airport and in the aircraft made air travel a burdensome and expensive experience. For several months into 2021, people conceded to essential travels. There was no travel for leisure or for holidays. Most tourism destinations in Nigeria and beyond were still closed due to the pandemic.
While local travel was easy, as passengers were only allowed to wear their mask, sanitise their hands and check their temperature before they were allowed to travel; international travels demanded COVID-19 tests paid by passengers at exorbitant rates, depending on the country. In Nigeria, health related agencies spearheaded by Port Health cashed out on passengers with the introduction of stringent and exploitative policies by the federal government that literally stripped travellers their earnings.
It was confirmed that these measures were abused by health officials who enforced government stringent measures, which made air travel cumbersome and grueling; but by 2022, some of these rules began to be relaxed. Ironically, by late 2020, Nigeria was no more recording severe cases, but it maintained airport COVID-19 protocol, insisted on tests and tended to neglect vaccination. In fact, eye witness account narrated how those who were enforcing COVID-19 measures at the international airports in Lagos and Abuja threw away vaccination cards, insisting on payment of COVID-19 tests at the cost of over N50, 000 before it was later reviewed downwards.
Capacity and Domestic Air Travel
Although Nigeria was one of the countries that called off the lockdown early, but the global effect of the pandemic still affected the country, especially the later variants of Omicron, Delta and Alpha because many countries were still observing lockdown when Nigeria had called off the lockdown. Aircraft ferried to maintenance facilities where lockdown was still observed had to wait until physical activities started in those countries and on resumption they faced a backlog.
Nigerian airlines waited for the aircraft that went for checks. By the time the earlier aircraft went through the checks, Nigerian currency had drastically weakened to the dollar and forex became very scarce. It became difficult to source dollars to pay for the aircraft maintenance. And while those ones that were taken before the lockdown and after were still in maintenance facilities overseas, existing ones still in operation were getting due for major checks, known as C-check. They have to be grounded because no slot in Maintenance, Repair and Overhaul (MRO) facilities overseas to take them in. They had to wait for slots, as airlines were finding it increasingly difficult to source for foreign exchange to pay for the checks.
This situation drastically reduced the number of operating aircraft in the Nigerian domestic market and with fewer aircraft in operation; there was significant reduction of seats, which forced a spike in fares.
This was exacerbated by high cost of aviation fuel. In February 2022, oil marketers increased cost of aviation fuel from N180 per litre to N400. Airline operators were shocked. In response they reviewed their fares and N50, 000 became base fare for any destination in the country. The fare continued to increase as demand soared, enhanced by insecurity in the country, which made road transport a huge risk.
The Nigeria Bureau of Statistics (NBS) in its latest report stated that the average cost of airplane tickets in Nigeria rose from N37, 022.97 in November 2021 to N73, 267.57 in November 2022. This represents an increase of 97.09 per cent, according to the NBS’ Transport Fare Watch report for November 2022. The report also showed that that the average price of a single flight ticket increased by 0.09 per cent from N73, 198.65 in October to N73, 267.57 in November 2022. NBS explained that in air travels fare; the average fare paid by air passengers for specified routes single journey, increased by 0.09 per cent on a month-on-month from N73, 198.65 in October 2022 to N73, 267.57 in November 2022.
In order to meet the surge in demand during the high December season, from September 2022, Nigerian airlines started leasing aircraft in order to increase capacity. Luckily for air travellers, more start up airline joined the domestic market in 2022, including Value Jet and Rano Air, but these start-ups have few operational aircraft.
Review of Nigeria Aviation Act
The Nigerian Civil Aviation Authority (NCAA) it is hoped would enter the New Year with new Civil Aviation Act 2022, which would give five years validity of Air Operators Certificate (AOC) while the non-schedule carriers would have three years validity. Currently AOC for schedule operators is renewed every two years. NCAA said it is working on the review of the current validity.
“Within the first or early part of the first quarter of next year (2023), it will come into effect and it will explain who is entitled. As soon as it is internally done, we will release the new review”, the Director General of NCAA, Captain Musa Nuhu said.
In the new Act, Section 9(1) stipulates that the Authority shall have power to: (a) investigate whether any person, body or entity has committed an offence under the Act: (b) enter into any premises, property, aircraft, aerodrome or conveyance without warrant for the purpose of conducting search or inspection in furtherance of its functions under the Act: (c) prosecute offenders under the Act: (d) trace, seize, detain or retain the custody, for the purpose of investigation and prosecution, of any property which the Authority reasonably believes to have been involved in or used in the commission of any offence under the Act and (d) seal up premises upon reasonable suspicion of such premises being involved in or used in the commission of any offence under the Act.
Section 23(10) says under the 5 per cent of airfare, contract, charter and cargo sales charge, Section 23(10) says that an air operator which fails to remit to the Authority, within the time specified in the regulations the 5 per cent charge, commits an offence and its directors are each liable on conviction to a fine of N5, 000,000 or imprisonment for a period of two years or both, among others.
Installation of Airfield Lighting at MMIA
After over 10 years of operating the Runway 18L, known as Domestic Runway without airfield lighting, the federal government in 2022 installed lighting facility at the runway to enable aircraft to land in the night. Since 2008 when the runway was rehabilitated and was supposed to be accompanied with runway light, the facility was not installed until 14 years after. Airlines had lost huge resources on fuel taxing 15 minutes from the international runway, 18R after 6p.m. everyday, amount Airline Operators of Nigeria (AON) put at over N3 billion annually.
“The runway was shut more than three months ago to give room for installation of lights, which was excluded from the main project in 2008 when it was commissioned. The absence of lights on the runway which had put untold burden on airlines over the years, as they burn fuel while taxing to the domestic runway from the international runway,” the Federal Airports Authority of Nigeria (FAAN), which manages all the federal government owned airports in Nigeria, said in a statement.
Aircraft Leasing
As stated earlier, Nigerian airlines had to lease aircraft to increase capacity and meet passenger demand. That was an indication that Nigeria had fully recovered from the pandemic in term of passenger traffic. In fact, the Minister of Aviation, Senator Hadi Sirika stated in Lagos recently that the International Air Transport Association (IATA) acknowledged that Nigeria was one of the first countries that fully recovered from the effect of the pandemic to have recorded pre-COVID-19 passenger traffic in its domestic operations.
To meet passenger demand, airlines had to resort to aircraft leasing. Nigerian airlines have their own aircraft but many of them are in repair facilities overseas. They cannot raise the forex needed to pay for them to be returned home after maintenance. Some are yet to secure slots for maintenance and those on AOG (aircraft on ground) cannot be taken out because there is no forex.
The Managing Director, Flight and Logistics Solutions Limited, Amos Akpan said Nigerian airlines took wet lease to boost their capacity in anticipation of the high yield Christmas season and explained why domestic air travel was recording increased demand.
“This is in anticipation of the increase of passenger turn out in December. Festive season, elections campaign season and unsafe interstate roads are the deducible reasons for expected higher passengers’ turnout. Also, it is important Nigerian airlines go on fleet expansion to cover domestic routes and position to participate in the Single African Air Transport Market (SAATM). Capacity is relevant to compete in the domestic, regional, and continent’s market,” he said.
Nigeria Air
Although the emergence of Nigeria Air is being delayed by court case instituted against the national carrier by domestic airlines through the Airline Operators of Nigeria (AON), but the federal government was able to select a technical partner for the carrier, which is Ethiopian Airlines. Minister of Aviation, Senator Hadi Sirika explained why government selected Ethiopian Airlines, noting that apart from being one of the biggest and most efficient airlines in the world, Ethiopian Airline was the only airline that responded to its requests for expression of interest and fulfilled all the stipulated conditions laid down by Nigeria to be picked.
He also explained that other airlines ignored Nigeria to join hands with it to float a national carrier, despite the fact that he personally went to such airlines and met with them at several air shows and international aviation forums to convince them to partner with the country.
Besides, Sirika pointed out that Ethiopian Airlines had proven to the world that it was not only efficient and prosperous by registering over $1 billion profit after tax, even in the wake of COVID-19, but had also continued to flourish, despite the challenges in the aviation sector globally.
Airport Concession
Although there is still hope but the federal government is yet to deepen its concession of Nigeria’s major airports in Lagos, Abuja, Port Harcourt and Kano. But on October 26, 2022, the federal government through the Ministry of Aviation said the Request for Proposals (RFP) phase of the Nigeria Airports Concession Programme (NACP) which came to a close on September 19, 2022, saw the emergence of preferred and reserve bidders for three out of four airports and cargo terminals as approved for concession under the programme.
Government said in line with the Infrastructure Concession Regulatory Commission Act, 2005 and global best practice, ”The Federal Ministry of Aviation is in consultation with the Infrastructure Concession Regulatory Commission and other stakeholders as regards the way forward for the fourth airport asset which did not receive bids as at the time of the RFP deadline.”
Government announced the preferred bidder for the Nnamdi Azikiwe International Airport (NAIA), Abuja, as Corporacion America Airports Consortium, while ENL Consortium was selected as the reserve bidder for NAIA.
The preferred bidder for Murtala Mohammed International Airport (MMIA), Lagos was TAV/NAHCO/Project Planet Limited (PPL) consortium. Sifax/Changi Consortium was also selected as the reserve bidder for MMIA.
“The preferred bidder for Maliam Aminu Kano International Airport (MAKIA), Kano, is Corporacion America Airports Consortium. There are no reserve bidders for MAKIA as at the time of this announcement,” the Minister announced, adding that the Port Harcourt International Airport (PHIA), Port Harcourt, did not receive any proposal as of the RFP deadline.
“The next stage of the programme is the negotiations and due diligence stage, during which the federal government will invite preferred bidders to enter detailed negotiations with its representatives, with a view to developing a Full Business Case (FBC) before onward transmission to ICRC for review and approval,” the Minister said.
The year 2022 could be described as the year of cleansing and recovery for the Nigeria’s aviation industry, although the progress made was marred somewhat by the high cost and sometimes scarcity of aviation fuel, which disrupted flight operations.
