Key highlights
- Forex scarcity is a major challenge for indigenous and foreign airlines in Nigeria.
- The aviation industry is highly dependent on dollars for spares, consumables, maintenance, and equipment.
- The incoming government is expected to provide more support for indigenous airline operators and ensure the success of the Nigeria Air project.
The Deputy Managing Director of 7Star Global Group, Air Commodore Simon Okwuokei (retd), said the inability of indigenous airlines to source forex for operations is a major challenge facing the continued existence of airlines in the country.
Speaking to Nairametrics in Lagos over the weekend, Okwuokei explained that the current situation was not limited to domestic airlines, as the challenge has stopped some foreign airlines like Emirates from operating in Nigeria.
Need for an immediate solution
According to him, every activity in aviation is dollar-dependent. He hoped that the issue would be resolved in the coming months by the Federal Government to create an avenue for airlines to operate smoothly.
He explained that with more indigenous airlines given the enabling environment to expand their operations to some international routes like Europe, the Middle East, United Arab Emirates (UAE) and others, the issue of forex would be partially addressed in Nigeria, while the unemployment and brain drain challenge would be tackled. He said:
- “Whether you are buying from China, Europe or America, you will need forex to pay for spares, consumables and to acquire equipment. You will need dollars to pay for maintenance and nearly everything you are doing. It is mostly dollarized and if you buy in Europe, you will pay in euros. So, to that extent and to the extent that we are having a forex issue as a country, we have a challenge.
- “I am sure you are aware of the challenges being faced by some big international carriers like Emirates in having to get their money back. It is because of the scarcity of forex in our economy. It is not just about us. It affects the entire aviation industry. You see airlines that operate for a few weeks or months, then, when they have a challenge, they are on the ground for quite some time. The reason is not that they don’t want to work, but they need spares.
- “They may have the money in naira, but to get it in dollars, which is the acceptable means of transaction, is not there and there is nothing you can do about it. You cannot put an unserviceable aeroplane in the air. As the saying goes, ‘There is no parking space in the air.’ So, you have to work with what you have in the country, we pray that soon, the economic situation in the country will improve to make us operate as we desire to do.”
The expectation from the incoming federal government
Okwuokei further appealed to the incoming government to emulate other governments around the world by giving more support to the indigenous airline operators for the expansion of the economy.
On the Nigeria Air project, Okwuokei explained that the national carrier would be a big pride and asset to the country, but said the government needed to get it right.
- “We desire to have Nigeria Air; to have it big because we have enough people in this country to patronise various airlines. So, we also need to support other airlines that are doing so much for this country; they need support,” he said.
