By Chinelo Obogo, [email protected]
Nigeria’s aviation sector is grappling with significant challenges stemming from the absence of reliable and consistent data. The discrepancies in data reported by various government agencies have created a fragmented and unreliable information landscape. This lack of cohesion impedes effective business planning and policymaking, making it exceedingly difficult for companies within the industry to develop and implement strategic plans. The inconsistent data not only hampers operational efficiency but also complicates efforts to forecast trends, allocate resources, and make informed decisions, ultimately stifling the sector’s growth and development.
At the 28th annual conference of the League of Airport and Aviation Correspondents (LAAC), held recently in Lagos themed: “Aviation Survivability Amidst a Challenging Macro-Economic Environment,” stakeholders unanimously emphasised the urgent need for the federal government to implement a centralised data system for the aviation industry. They stressed that such a system would enhance data reliability and accessibility, fostering more effective decision-making and strategic planning.
Additionally, they called for the creation of a more conducive business environment to stimulate sector growth and address the myriad challenges faced by the industry. This dual approach—establishing robust data management and improving the business climate—is seen as crucial for ensuring the sector’s resilience and future development.
Experts also highlighted the impact of the naira’s depreciation on aviation operations and urged the government to create a supportive environment for businesses to thrive.
Experts’ views
The Group Managing Director of Finchglow Holdings,
Bankole Bernard, who was one of the panelists, said that a centralised and unified data system would provide a solid foundation for informed decision-making because without reliable data, no company can make informed business decisions.
Bankole said credible data gathering could resolve 50 percent of the sector’s challenges, criticising the ‘noisy and inconsistent’ data from various agencies within the sector.
He questioned the reliability of travel statistics, saying, “Day-in-day-out, we hear that 5 percent of the population are air travellers. Meanwhile, who is verifying these figures?. We always say we have 15 million travellers in Nigeria out of 240 million people. Clearly, we are not illiterate.”
“We need a clear picture of the industry to address its challenges effectively. Without reliable, centralised data, we cannot formulate effective policies or make sound business decisions. We need to move beyond estimates and speculations. A central data system can resolve at least half of our industry’s problems,” he said.
He stressed the importance of policy consistency for long-term industry growth and also highlighted the impact of the naira’s depreciation on aviation operations and called for government policies to support the sector.
“It is impossible for us as an industry to survive without a central data system. Thus, without it, how can we formulate policies, make plans, or thrive effectively?” he said.
To address these challenges, Bernard called for government action to create a business-friendly environment. “Unfortunately for us as an industry, everything about us is dollarised and that has a lot of impact on our operations. I believe that the government can initiate policies that will support the industry. There must be policies that will sustain the industry by helping it to stay afloat.
“Year-in-year out, new governments frequently alter policies. Consequently, continuity is essential. When the new government does not change existing policies, rather, working on plans to see them to completion is vital. The government must create an environment where businesses can thrive. Consistent policies and a stable economic climate are essential for the aviation sector’s sustainability,” he said.
Chairman of the Aviation Ground Handling Association of Nigeria (AGHAN), Olaniyi Adigun, who was also one of the panelists, also said the industry must prioritise collaboration and accurate data collection to overcome its current challenges.
He expressed concern over the lack of reliable data within the sector, saying that despite having numerous government agencies, the industry still suffers from inconsistent data, which has hindered effective decision-making and investment. He urged the Nigerian Civil Aviation Authority (NCAA) to emulate the Central Bank of Nigeria (CBN) by providing accurate and consistent data to support industry growth.
“We need an aviation economic summit to identify challenges and attract investors. Collaboration, consolidation, and credible data are essential for the survival and growth of the Nigerian aviation industry,” he said.
He lampooned the industry’s failure to adopt what he described as a ‘business-oriented’ approach, suggesting that the aviation sector could learn from the finance sector which has thrived through collaboration and consolidation.
He said the rising cost of operations due to the depreciation of the naira shows the desperate need for partnerships, saying that ‘standalone’ businesses in the sector are increasingly vulnerable to collapse.