Government's financial withdrawals straining the airline industry, says United Nigeria Airlines' boss

Professor Obiora Okonkwo, Chairman and Chief Executive Officer of United Nigeria Airlines, urged the Federal Government on Thursday to cease deducting from the revenue of aviation agencies, citing that this practice exerts undue pressure on the sector.

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Due to the disruptions in the Strait of Hormuz stemming from the Iran conflict, United Nigeria Airlines lost approximately N10 billion over several months as a result of increased operational costs driven by the rise in the price of aviation fuel, also known as Jet-A1.

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Okonkwo, who also serves as the Spokesperson for the Airline Operators of Nigeria, called on the government to implement policies that benefit airlines, referencing a recent report by the International Air Transport Association that confirms Nigeria is one of the harshest environments for airlines to operate.

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He made these remarks at the official unveiling of two United Nigeria Airlines’ Boeing 737-800NG aircraft, which were named in honor of Igwe Nnaemeka Achebe, the Obi of Onitsha, and the late literary giant, Professor Chinua Achebe, in Lagos.

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Okonkwo stated, “What we have seen in the last three months that has made big airlines in stable economies collapse, we have overcome, with some months resulting in losses of between N5 billion and N10 billion, yet we have persevered.

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He expressed dissatisfaction that Nigeria is the most expensive place for airlines to operate, as indicated by IATA, and expressed hope that the government would heed their appeals for a reduction in charges.

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Okonkwo also emphasized that the government should refrain from deducting from the revenue of aviation agencies, as every revenue that goes to the NCAA results in 70 percent being removed for other purposes, thereby exerting pressure on the Nigerian Civil Aviation Authority, NCAA, Federal Airports Authority Nigeria, FAAN, and Nigerian Airspace Management Agency, NAMA.

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He advocated for the money to be left in the hands of regulators and service providers, enabling them to reduce their charges, and noted that aviation is a catalyst for economic development, with the core aspect of the Nigerian economy driven by aviation.

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Okonkwo concluded that if the government takes these steps, it can also provide single-digit loans, which would further support the aviation sector.

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Regarding the aircraft unveiling, Okonkwo mentioned that one Achebe had introduced Africa to the world, and that he tells people around the world that the Okonkwo in Things Fall Apart is his great-great-grandfather.

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He also acknowledged the presence of another Achebe, who is a living legend and icon, as well as the Obi of Onitsha, Nnaemeka Achebe, at the event.

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Allen Onyema, Chairman of Air Peace, West Africa’s largest airline, also lamented the challenges of doing business in Nigeria but noted that the operating environment had improved under the current administration.

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Onyema emphasized that bureaucratic bottlenecks built up over the years had hindered growth in the sector and urged the government to continue supporting indigenous investments.

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Minister of Aviation and Aerospace Development, Festus Keyamo, responded to the appeals by pledging to sustain policies that would help domestic airlines grow, citing that such policies had contributed to the growth recorded by local carriers over the past two and a half years.

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Keyamo stated, “I have always insisted that there is no silver bullet to our problems in this country, whether in aviation or any other sector, and that nobody can simply wave a magic wand and solve everything overnight.

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He noted that it had taken about two and a half years for the benefits of the policy direction to become apparent, and that this was achieved through close collaboration with industry players.

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The Obi of Onitsha expressed his delight at seeing his name and legacy flying alongside Chinua Achebe, saying, “I am overwhelmed, lost for words, and it is a day of gratitude.

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He celebrated the arrival of the two airplanes and was particularly pleased that his name was inscribed on one of the aircraft, alongside Chinua Achebe, and acknowledged the benefits of sharing the same surname with the literary giant.