In a bid to resolve Foreign Exchange (FX) challenges in Nigeria’s aviation sector and stimulate growth, President Bola Tinubu has instructed the Central Bank of Nigeria (CBN) to organise quarterly reconciliation sessions with airlines operating within the country.
This directive, delivered at the 7th/2023 African Aviation Conference and Exhibition in Abuja, aims to not only address FX concerns but also encourage both existing and new entrants into Nigeria’s aviation industry.
In a related development, the International Air Transport Organisation (IATA) criticised the Nigerian government for imposing heavy taxes and fees on airlines; highlighting the existence of approximately 27 such charges.
During the conference, President Tinubu, represented by Minister of Aviation and Aerospace Development Mr. Festus Keyamo, reaffirmed his administration’s commitment to ensuring FX availability for entrepreneurs. He also hinted at the possibility of offering tax incentives to new investors.
President Tinubu outlined his vision of making Nigeria the aviation hub of Africa and expressed the federal government’s eagerness to attract global investors to the Aerotropolis project; promising tax exemptions and other appealing incentives.
He emphasised ongoing support for the aviation industry, urging investments in the proposed Aviation Leasing Company (ALC) and the Maintenance Repair, Overhaul (MRO) facilities while underscoring the importance of infrastructure upgrades at federal government-operated airports.
President Tinubu further discussed plans for enhancing aviation business in Nigeria, including infrastructure upgrades, Cat-3 landing system improvements, and the construction of a second runway in Abuja. Additionally, he mentioned the government’s willingness to collaborate with companies to transform major airports into Aerotropolis complexes.
Regarding Aircraft Leasing Company (ALC), President Tinubu welcomed key players in aircraft leasing and head lessors to invest in Nigerian airlines; ensuring contract enforcement and protection of investors’ rights.
He also emphasised the pivotal role of the MRO facility in making Nigeria a continental aviation hub and expressed the administration’s commitment to support the establishment of world-class MROs and training organizations.
