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By Chinelo Obogo
Nigeria is missing out on substantial revenue from its Bilateral Air Service Agreements (BASAs) due to poor implementation and lack of reciprocity, according to an aviation expert, Amos Akpan. Reacting to a recent Daily Sun report on a study by the International Air Transport Association (IATA), Akpan emphasised that Nigeria is not fully leveraging its BASAs, particularly in comparison to the benefits other countries enjoy.
Findings from IATA study
The IATA study analyzed 607 BASAs across Africa and found that more than half are not fully implemented by governments, resulting in fragmented skies and struggling African airlines. BASAs are intended to regulate air traffic between countries, but weak enforcement has stunted the development of a robust internal air transport network. IATA’s Regional Vice President for Africa and the Middle East, Kamil Alawadhi, highlighted this issue at a recent conference in South Africa, noting that non-compliance with BASAs is a major barrier to seamless regional connectivity and growth in the African aviation sector.
Alawadhi explained that the lack of compliance undermines the Single African Air Transport Market (SAATM), an initiative aimed at removing restrictions on airline traffic rights across the continent. SAATM has the potential to boost economic growth through increased trade and tourism, but the current state of BASAs presents a significant challenge.
Disparities in Nigeria’s BASA implementation
Akpan illustrated the imbalance in Nigeria’s BASA agreements by citing Ethiopian Airlines as an example. Ethiopian Airlines can transport passengers and cargo directly between multiple destinations, whereas Nigerian airlines face restrictions.
“No Nigerian airline can carry passengers and cargo from any of our international airports into Addis Ababa, then continue to another country. They must return to Nigeria before flying to a third destination. Conversely, Ethiopian Airlines can fly from Addis Ababa to Lagos, drop cargo, pick up new cargo, and continue directly to another destination without returning to Addis Ababa. This lack of reciprocity leads to significant revenue losses for Nigeria,” Akpan explained.
Call to action for FG
Akpan urged the Nigerian government to enforce reciprocity in BASAs, ensuring that Nigerian airlines receive the same privileges as foreign carriers. He also advocated for the implementation of commercial clauses to generate revenue from unused portions of BASA agreements. Strengthening domestic airlines’ capacity to compete in the global market and monitoring BASA implementation for compliance and fairness are crucial steps, according to Akpan.
“BASA is a national asset that should benefit all Nigerians. The push for liberalism and competition is only advantageous if Nigeria actively participates and gains from it. Therefore, Nigeria must urgently position our airlines to take full advantage of BASA and SAATM, and implement commercial clauses that generate revenue from unutilized portions of these agreements. We have yet to demonstrate readiness for SAATM or the open skies agreement with the United States,” he said.
Maximising economic potential
By addressing these issues, Nigeria can maximize the economic potential of its aviation sector and prevent further revenue losses. Akpan stressed that effective implementation of BASAs and SAATM could unlock significant economic growth through increased trade and tourism. However, this requires decisive action from the Nigerian government to ensure that domestic airlines are well-positioned to benefit from these agreements.
Akpan concluded by emphasizing the importance of monitoring BASA implementation to ensure compliance and fairness. He called for proactive measures from the Nigerian government to safeguard the country’s interests in international aviation. By doing so, Nigeria can transform its aviation sector into a powerful driver of economic growth and development.
