FG Urged to Boost Financial Oversight of Airlines
The Federal Government has been advised to strengthen financial oversight of domestic airlines through regular audits to assess their liquidity and ensure long-term sustainability in the aviation sector. The government is also warned against imposing new taxes on the aviation industry, particularly aviation schools, which the National Revenue Service (NRS) planned to include in tax revenue collection under new tax reforms.
Speaking yesterday in Lagos at a seminar organized for graduating students of the Lagos Aviation Academy (LAA), themed 'Connecting Talents to Opportunities,' the Group Managing Director of Finchglow Holdings Ltd, Bankole Bernard, said increased regulatory scrutiny of airlines' financial health would help prevent the diversion of operational funds and encourage fleet expansion and job creation.
According to Bernard, the aviation industry is heavily regulated worldwide, and Nigeria's regulators should adopt a proactive approach similar to the financial monitoring conducted by the Central Bank of Nigeria (CBN) on commercial banks. He explained that such oversight would discourage airline owners from diverting company funds for personal purposes and ensure resources are channelled toward operational growth.
“The government should increase its level of audits on airlines so that there is clarity about their liquidity position. There should be constant audits that reveal their financial strength,” Bernard said. “If an airline expands its fleet and routes, it automatically creates more employment opportunities. Regulators need to closely monitor operators and identify challenges affecting their growth projections.”
He noted that the International Air Transport Association (IATA) conducts similar audits on member airlines, adding that airlines and aviation businesses in other jurisdictions are routinely subjected to financial reviews to determine their solvency and capacity to continue operations. He maintained that stronger financial supervision would help more Nigerian airlines survive and stand the test of time.
Bernard warned that increasing taxes and charges on aviation businesses could further weaken an industry already grappling with high operating costs and foreign exchange pressures. He cited recent tax-related concerns affecting aviation training institutions, arguing that specialized aviation schools should continue to enjoy educational exemptions. According to him, aviation training institutions play a critical role in developing skilled manpower for the industry and should be supported through policies that create an enabling environment for growth. He decried that the cost of operations is already high and called on government agencies to look at ways of reducing the burden on aviation businesses, rather than increasing it.
The Head of School, LAA, Bolaji Durajaiye, said that since its establishment nine years ago, the school has trained more than 5,000 students. According to him, many of the graduates now work across airlines, travel agencies, and other aviation-related organizations globally. He said the academy has fulfilled the vision of its founder by impacting lives and creating employment opportunities for everyone. He also said that the school has expanded the horizons of many students, who now take up jobs in different fields. He further advised graduates of the academy to focus on continuous self-development and employability.
Some alumni who attended the seminar described their experience at the academy as transformative. One of the graduates, Chinwendu Gemma, said the training exposed her to the vast opportunities available within the aviation industry and strengthened her ambition of becoming a flight attendant.
