IATA and NANTA Advocate for Legislative Support to Strengthen Nigerian Airlines
The International Air Transport Association (IATA) has issued a compelling appeal to the National Assembly of Nigeria, urging legislative measures to safeguard the nation's airlines, which are currently operating on extremely slim profit margins. This call to action was made during the 50th annual general meeting of the National Association of Nigerian Travel Agencies (NANTA), held in Ibadan, where industry leaders highlighted the critical need for government intervention to ensure the sustainability and growth of the aviation sector.
Economic Contributions and Global Challenges
Dr. Samson Fatokun, the Area Manager for West and Central Africa at IATA, emphasized that Nigerian airlines contribute approximately $2.5 billion to the country's gross domestic product (GDP), accounting for 0.7 per cent of the total. He stressed that to sustain and improve upon this significant economic input, the National Assembly must enact supportive legislation. Fatokun pointed out that the ongoing crisis in the Middle East, fueled by conflicts involving Israel, the United States, and Iran, has disrupted global industry projections for 2026, underscoring the necessity for governmental backing to maintain seamless airline operations.
High Operational Costs in Africa
Fatokun detailed several factors that exacerbate the financial strain on African airlines, leading to higher air ticket prices compared to the rest of the world. He noted that Jet A1 fuel prices in Africa are 17 per cent higher than global averages, while taxes and charges on the continent exceed those elsewhere by 12 to 15 per cent. Additionally, air navigational charges in Africa are 10 per cent higher, and carriers face costs that are six to 10 per cent more for aircraft maintenance, insurance, and capital. Compounding these issues, African governments currently hold back $954 million in blocked funds, further hindering airline viability.
Call for Protection and Legislative Action
"The National Assembly should take up this with the Nigerian Federal government. We need to protect our carriers in Nigeria. The airlines are operating with a very thin profit margin," Fatokun asserted. He urged lawmakers to address these challenges through targeted legislation that could alleviate the financial burdens on airlines and promote a more competitive and sustainable aviation industry in Nigeria.
Senate Committee Response and Foreign Airline Concerns
In response, Senator Abdulfatai Buhari, Chairman of the Senate Committee on Aviation, advised NANTA to formally submit a written petition to the National Assembly outlining the sub-sector's challenges. He assured that the assembly would prioritize these issues. Buhari also criticized certain foreign airlines, including Delta, United, and Emirates, for insisting on dollar-only transactions in Nigeria, a practice he described as detrimental to the nation's economy. He questioned the fairness of such policies, asking, "How can some foreign airlines that operate in Nigeria insist on dollar-only transactions in our country? Can any airline go to India and say it would not transact in rupees?"
Collaborative Efforts Needed
Buhari emphasized that addressing these aviation challenges requires collective effort, stating, "If we don't take steps, the National Assembly can't address these challenges all alone. The government alone cannot tackle all these issues without the cooperation of everyone." He called for increased collaboration between industry stakeholders, government bodies, and legislative representatives to implement effective solutions.
NANTA's Commitment to Industry Sanity
Earlier in the meeting, Dr. Yinka Folami, President of NANTA, highlighted the need for all players in the aviation sector, particularly travel agencies, to combat touting and other unethical practices. He assured that NANTA would take proactive steps to address this issue, ensuring greater integrity and order within the industry. This commitment aligns with the broader goal of fostering a healthier operational environment for Nigerian airlines and travel agencies alike.
Overall, the discussions at the NANTA meeting underscored a unified call for legislative support and collaborative action to enhance the viability of Nigerian airlines, addressing both domestic and international challenges that threaten the sector's growth and stability.
