By Chinelo Obogo
In 2024, Nigeria’s aviation sector was defined by a series of events, blending progress, controversy, tragedy and lessons to shape its rapidly-evolving landscape.
One of the most significant milestones was Nigeria’s removal from the global aviation watchlist, unlocking numerous benefits, including improved access to dry lease aircraft and boosting the industry’s credibility.
A major turning point was the Federal High Court’s decision to nullify Ethiopian Airlines’ bid for Nigeria Air.
The court directed a fresh, transparent bidding process open to all eligible parties and ordered the immediate revocation of the Air Transport License granted to Nigeria Air by the Nigerian Civil Aviation Authority. This ruling introduced new complexities to the already challenging task of establishing the national carrier.
The year also saw the continuation of the trial of former Minister of Aviation and Aerospace Development, Hadi Sirika, accused of involvement in an N8 billion fraud related to the Nigeria Air project. Amid these challenges, the Nigerian government also faced backlash for introducing a $300 landing fee for helicopter operators, which was eventually suspended following widespread criticism. These events highlight an industry grappling with significant challenges on its journey toward progress and growth.
Nigeria exiting global aviaition watch list
For many years, global aviation companies blacklisted Nigeria for not complying with the ‘Convention on International Interests in Mobile Equipment’ and the ‘Protocol on Matters Specific to Aircraft Equipment’, which was concluded in Cape Town on November 16, 2001. The primary aim of both documents is to resolve the problem of obtaining opposable rights to aviation assets which includes airframes, aircraft engines and helicopters.
But Nigeria failed to comply with this agreement as some local operators had, in the past, breached it, making it difficult for lessors to have access to their aircraft leased by domestic airlines that default. This made the country’s compliance score dip below the required threshold, causing international lessors and companies to place restrictions on it and made it impossible for domestic airlines to accesses international aircraft leases. But in September, Justice John Tsoho, chief judge of the Federal High Court, signed the Cape Town Convention (CTC) practice direction to enable domestic airline operators to access aircraft on dry lease.
This development caused Nigeria to be removed from the watch list and the country’s global aviation compliance score saw a significant improvement in the CTC practice direction. In October this year, the Aviation Working Group (AWG) stated on its website that Nigeria’s score on the CTC Compliance Index had increased to 75.5 per cent, placing the country in the ‘high category.’ This development marked Nigeria’s official removal from the AWG’s watch list of non-compliant countries. The AWG, in a communication to the Minister of Aviation and Aerospace Development, Festus Keyamo, confirmed that the signing of the IDERA concludes Nigeria’s compliance process.
Court nullifies bid of Nigeria Air
On Monday, August 5, the Federal High Court sitting in Lagos granted a perpetual injunction restraining the federal government and anyone acting on their behalf from perfecting, continuing or transferring the operations of Nigeria Air from the 3rd and 4th defendants to Ethiopian Air.
The court permanently stopped the government from giving control of Nigeria Air to Ethiopian Air, who were the winning bidders. This meant that Nigeria Air cannot be run by any bidder until the court decides otherwise. Justice Lewis Allagoa who ruled in favour of the Airline Operators of Nigeria (AON) in their suit against Nigeria Air and several government agencies, also dismissed objections raised by interveners, Overland and others, and declared the sale of Nigeria Air shares and subsequent operations as unlawful.
The court ruled that Ethiopian Air was incompetent to bid for shares in Nigeria Air and commenced business accordingly. It then gave an order, directing the immediate, fresh and transparent bidding process(es) involving the plaintiffs being the AON which are rightly entitled to participate in the process. It also directed the immediate revocation and cancellation of the Air Transport License (ATL) issued by the Nigerian Civil Aviation Authority (NCAA) to Nigeria Air.
In 2022, the AON sued the Federal Government to court, listing Nigerian Air, Ethiopian Airlines, the immediate past Minister of Aviation and Aerospace Development, Hadi Sirika, and former Attorney-General of the Federation, Abubakar Malami, as defendants. Among other prayers, the AON asked the court to stop the national carrier deal and withdraw the ATL already issued to Nigeria Air by the NCAA.
They also claimed that the firm which served as transaction adviser for the transaction, was incorporated in March 2022 and alleged that the company was linked to the aviation minister.
Former aviation minister, Sirika under trial
Trial of Sirika over allegations of fraud and corruption related to the botched Nigeria Air project continued this year. The Economic and Financial Crimes Commission (EFCC) alleged that Sirika was involved in an N8 billion fraud with charges including conspiracy, abuse of office, diversion of public funds, contract inflation, and money laundering. The EFCC claimed that its investigation showed that Sirika allegedly awarded contracts to companies linked to his family members, including his younger brother, Abubakar Sirika, and his daughter and son-in-law. These contracts were reportedly inflated, and funds were diverted to personal accounts.
Helicopter landing charges’ controversy
In May, the federal government came under fire for a new policy mandating a $300 landing fee for helicopter operators as industry experts said the policy imposes an unreasonable financial burden on the operators which would translate to a staggering 127 per cent increase in operational costs and push the overall tax burden to a hefty 45 per cent. Stakeholders said Nigerian airlines and service providers are already facing difficulties and the unintended consequences of imposing high airport charges on struggling airlines can worsen the industry’s crisis.
But the Minister for Aviation and Aerospace Development, Festus Keyamo, said Naebi Dynamic Concepts Limited were granted exclusive rights to collect the $300 levy and that it aligns with a Memorandum of Understanding (MoU) between the Nigerian Airspace Management Agency (NAMA), the Federal Airport Authority of Nigeria (FAAN), the Nigerian Civil Aviation Authority (NCAA) and NAEBI. He insisted that the levy is a cost-recovery measure aimed at improving the quality of helicopter operations and that the government aims to utilise revenue from helicopter dominant lower airspace to enhance NAMA’s self-sustainability and support improvements in security, surveillance, and overall helicopter operations. After much outcry, Keyamo bowed to pressure and suspended the charges, saying that more consultations with stakeholders would be done before any permanent decision is made.
Dana Air goes bankrupt
On April 23, a Dana Air flight veered off the runway at Lagos airport, prompting an immediate suspension of the airline’s operations by the Nigerian Civil Aviation Authority (NCAA). The suspension was due to serious safety concerns and Dana Air’s financial instability and the airline eventually went bankrupt.
Air Peace commences Lagos-London flights
Nigeria’s Air Peace commenced its direct flights to London on March 30, 2024 to much fanfare and controversy. The airline had earlier received approval to operate to Gatwick Airport in London from Lagos but was given ad hoc slots, which were not suitable for scheduled flight service, this prompted Keyamo to write to UK’s Transport Minister, demanding slots at Heathrow for the airline. However, the airline still operates at Gatwick as an investigation by Daily Sun revealed that it had missed two submission deadlines for slots.
Blocked funds
The Federal Government settled the $850 million outstanding debt owed European airlines, making Nigeria to exit the list of top nine countries owing $1.4 billion in funds accumulated from tickets sold by foreign operators.
The International Air Transport Association (IATA) had earlier in June revealed that the Central Bank of Nigeria (CBN) has cleared 98 percent of funds trapped in Nigeria which accumulated from ticket sales by foreign airlines. The aviation body reported a 28 per cent decrease in the amount of airline funds blocked from repatriation by governments showing that total blocked funds at the end of April stood at approximately $1.8 billion, a reduction of $708 million (28 per cent) since December 2023.
IATA stated that at its peak in June 2023, Nigeria’s blocked funds amounted to $850 million, significantly affecting airline operations and finances in the country. The body said carriers faced difficulties in repatriating revenues in US dollars, and the high volume of blocked funds led some airlines to reduce their operations and one carrier to temporarily cease operations to Nigeria, which severely impacted the country’s aviation industry.
Helicopter crash in Rivers State
The industry was thrown into mourning on Thursday, October 24 when eight persons died after a helicopter crashed at about 11:22 am along the waterways in Port Harcourt, Rivers State. The helicopter, a Sikorsky SK76 with registration 5NBQG and operated by East Wind Aviation, was en-route from Port Harcourt Military Base (DNPM) to the NUIMANTAN oil rig. The aircraft, with eight persons on board, ditched into the waters near Bonny Finima in the Atlantic Ocean.
After a two-month investigation into the crash, the Nigerian Safety Investigation Bureau (NSIB) disclosed that the helicopter was not fitted with a Flight Data Recorder (FDR) despite the fact that Part 7.8.2.2(q) of Nigeria Civil Aviation Regulations (Nig. CARs) 2023 requires that FDR must be fitted on all helicopters.
In its preliminary report, the NSIB also said the flight crew also used non-standard phraseology throughout the flight, and there were no standard callouts for the various phases of the flight. The aircraft’s radio altimeter was snagged and deferred on October 18, 2024, six days before the accident, adding that no dew point data was reported in the weather information passed to 5N-BQG on the day of the occurrence.
The report stated that no one could survive the accident as the helicopter crashed into the Atlantic Ocean and disintegrated upon impact with the water surface and its various parts scattered. The main wreckage was found at coordinates 04°13’37’’ N 008°19’22’’ E at a depth of 42 m. While approaching the crash area, fuel was observed on the surface water. Helicopter debris and some personal belongings of the flight crew and passengers were scattered all over the area. The NSIB said some life vests and three bodies were recovered from the crash area and some of the bodies recovered had inflated life vests on them. Further perimeter search was carried out, and no additional persons or bodies were recovered on the day of the occurrence.