…Keyamo insists policies geared towards promoting indigenous operators

The Chairman of United Nigeria Airlines (UNA), Prof. Obiora Okonkwo, has called for urgent government reforms to ensure the survival and sustainability of Nigeria’s aviation industry.

This comes as the Minister of Aviation and Aerospace Development, Festus Keyamo, reaffirmed that government policies in the sector are designed to strengthen indigenous operators and improve their competitiveness.

Speaking on Thursday at the unveiling of two newly acquired Boeing 737-800NG aircraft named after the late Prof. Chinua Achebe and the Obi of Onitsha, Igwe Alfred Nnaemeka Achebe, at the Murtala Muhammed Airport, Lagos, Okonkwo warned that rising operational costs, inadequate funding, and persistent aircraft shortages were placing severe pressure on domestic airlines.

He said that without deliberate policy interventions, operators would continue to face significant financial and operational challenges in an already difficult environment.

According to him, Nigerian airlines operate in one of the most expensive aviation markets globally, with huge costs incurred on overseas training, aircraft maintenance, and fleet acquisition.

He noted that the International Air Transport Association (IATA) had previously ranked Nigeria as one of the most expensive countries in the world for airline operations.

Okonkwo called on the Federal Government to review multiple charges imposed on operators, saying a reduction in the cost burden would improve sustainability across the sector.

He also urged a review of the aviation revenue-sharing structure, advocating that aviation agencies be allowed to retain a larger share of their internally generated revenue instead of remitting most of it to the federation account.

According to him, improved funding for aviation agencies would enhance infrastructure development and reduce operational costs for airlines.

“In the last three months, the industry may have lost N10 billion due to disruptions in air travel, though this is not peculiar to Nigeria,” he said.

“Aviation remains a critical driver of economic growth, trade and national connectivity. Better-funded agencies will be able to provide the infrastructure required to support operators and make the industry more sustainable.”

Despite the challenges, Okonkwo expressed optimism about the future of United Nigeria Airlines, describing the acquisition of the two aircraft as a milestone that demonstrates the airline’s commitment to growth, reliability, and improved passenger service.

He also called for stronger collaboration among government, regulators, and operators to build a more resilient and globally competitive aviation sector.

In his remarks, Keyamo reiterated the Federal Government’s commitment to supporting indigenous airlines through favourable policies and improved access to aircraft financing.

He described the aircraft unveiling as a highlight of his tenure, stressing that government aviation reforms are intentionally designed to empower local carriers and enable them to compete on regional and international routes.

Keyamo said the Tinubu administration’s aviation roadmap includes reforms such as the implementation of the Cape Town Convention, the Irrevocable Deregistration and Export Request Authorisation (IDERA), and other measures aimed at boosting investor confidence.

He noted that these reforms had helped attract financial institutions back into aviation financing, reversing a previous trend where banks avoided the sector due to perceived risks.

“Whatever policy we bring in, the first question is whether it supports local airlines. If it does not, we drop it,” he said.

“We do not have a national airline, but we are proud of our flag carriers. Our focus is to support them, help them grow, and ensure they can compete globally.”
The minister also disclosed that the Federal Government had secured approval for the establishment of a national aircraft leasing company to improve access to aircraft for Nigerian operators through government-backed arrangements.

He added that the initiative would ease the challenges airlines face in acquiring aircraft from foreign lessors.

Keyamo further revealed plans to allocate more international routes to indigenous airlines, including United Nigeria Airlines, as part of efforts to increase local participation in international air travel.

He said foreign airlines currently control about 90 per cent of international passenger traffic in and out of Nigeria, a situation the government aims to rebalance.

The minister also highlighted plans to develop Lagos into a regional aviation hub for West and Central Africa, enabling Nigerian airlines to serve as key connectors across the region.