The time to invest in the Nigerian aviation sector is now and not later, and that is because there are diverse opportunities in the sector.
This was disclosed by Hadi Sirika, Minister of Aviation, at the Federal Airports Authority of Nigeria (FAAN) national aviation conference in Abuja.
According to him, some of the opportunities are the four approved designated free zones airports, ease of doing business in the sector and the limitless potential for huge returns on investments.
What the Minister is saying about investment
He said, “Our four airports, for now, are being approved and designated as free zones. I want all of you to come and invest. Particularly, in Abuja, we have 12,000 hectares of land or if my maths is correct, 24, 000 acres of land, all available as free zones in this federal capital territory.
“The ease of doing business ranking has risen and it is possible for you to own 100% of a company in Nigeria as a foreigner. So, whether you are a foreigner or a Nigerian, we want to assure you that the aviation sector is a place where you can put your money and you will not lose.
“Such investments would strengthen the aim of public-private partnership (PPP) in the aviation sector. Investors will have first-hand information on how to partner with FAAN for beneficial business arrangements to develop the Nigerian aviation industry.
“It is our intention to come up with a working document that would be transmitted to relevant authorities for immediate action.”
Sirika added that resolutions would be reached at the conference to bring lasting and sustainable solutions to the challenges confronting the aviation industry.
“I, therefore, implore well-meaning Nigerians and foreign investors alike to come on board and take advantage of these business opportunities, with limitless potential for huge returns of investments.
“This maiden edition would be institutionalised as a platform where great ideas that will propel the Nigerian aviation sector into a global reference point will be developed,” he added.
What you should know
- Nairametrics had reported in October 2021 that the infrastructure gaps in the sector have opened the sector up for investments.
- There are only five designated international Airports in Nigeria, one each in Abuja, Lagos, Kano, Port Harcourt, and Enugu. For a population of over 200 million, this figure is pretty dismal. Worse, of the five international airports, only Lagos and Abuja are the busiest.
- Sirika had announced that the nation would soon concession the international airports, assuring Nigerians that the country isn’t selling her assets but concessioning them in a manner that would modernise the airports and have them operate to create more jobs as well as generate more revenue for the country.
- If there were no investment opportunities in this aspect of the aviation sector, there would be no need for this major step towards engaging the private sector to give the assets a facelift.
- Muyiwa Lucas, an Aviation consultant, explained that the government has no business doing business, adding that there are investment opportunities in the airports that several private investors can turn around.
- “The government should give them up to someone who would operate them and make them better. It will become more profitable, passengers will enjoy better services and the industry will grow exponentially. After an agreed period, the assets can be returned to the government.
- “The airport terminal buildings are indeed crying for investors touches, as they would generate revenues from non-aeronautical resources, while all other facilities at the airports and existing concessions, outside the airport terminals, also present great opportunities as well,” Lucas said.
