Nigeria loses N100b to foreign airlines yearly

FOR over two decades, Nigerian airlines have failed to abide by the Bilateral Air Service Agreement (BASA) they entered into with over 50 countries and this has been faulted by experts in the sector, who frowned at the over N100 billion the country might have lost to huge capital flight by the operation of foreign airlines in Nigeria. Nigeria has over 60 BASA across the globe with different countries for economic and air transportation benefits, but Nigerian airlines do not have the capacity and capability to reciprocate the pact.
The experts, under the aegis of Aviation Round Table (ART), called on the Federal Government to ensure a review of all BASA conditions, aircraft types, routes, meals on board, frequency of flights per week and double entry/designation into Nigeria by foreign carriers.
But the government says that while it was reviewing the imbalance, it could not stop foreign airlines from operating in the country because of the high demand for air travel by Nigerians abroad, especially to the United Kingdom (UK).
While Nigeria has BASA with UK, the pact between Nigeria and the United States (U.S.) is popularly referred to as “Open Skies” policy. The pact allows both nations to designate as many carriers as possible to service each other’s country.
The U.S. has Delta and United Airlines as two of its carriers operating direct flights on 14 frequencies to Nigeria, while only Arik Air operates to New York. Other Nigerian carriers are yet to show interest in joining the Nigerian airline.
Fielding questions from reporters at the weekend in Lagos, ART President, Capt. Dele Ore, and his Secretary General, Sam Akerele, said Nigeria has over 60 BASA across the globe with different countries for economic and air transportation benefits, but lamented that only about 15 were being serviced while the others were virtually of little benefit, except for commercial income of $20 per seat carried by the foreign airline on routes not plied by Nigerian airline.
“For over two decades, this trend has continued leading to capital flight, underdevelopment of the aviation sector, youth unemployment and death of domestic operators within five years of starting operations,” Ore said.
The group applauded the re-modeling of 11 airports, saying it is a welcome development when viewed against the dilapidation and rot of facilities at most of the airports. Ore added: “The extent of the breakdown of terminal buildings, passenger lounges, toilet facilities, unserviceable conveyor belts or lack of electricity at our airports has reached an alarming rate.”
“The immediate response to the situation by Aviation Minister, Stella Oduah-Ogiewonyi, cannot but be applauded. The recently commissioned GAT terminal building is impressive in terms of expanded building, architectural design and value, and one hopes that efficiency of the facilities installed there are high and maintenance culture in the front burner. At N700 million per terminal, it is a huge deployment of public funds.”
They wondered what had become of the Public, Private, Partnership (PPP), which they opined would have limited tax payers’ money in the airports re-modelling projects, or the concession option, which they disclosed would have meant that available funds were channeled into sectors that also impact on safety such as airfield lighting for Runway 18L, which project has been stalled for many years, wild life control, perimeter fencing and others.
They noted that in the spirit of transparency, accountability and due process of the present administration, “the processes of contract tenders and award ought to be made open and available to stakeholders for monitoring purposes.”