The Minister of Aviation and Aerospace Development, Festus Keyamo, has dismissed the perceived risks attributed to Nigerian airlines by lessors, calling them untrue. Keyamo explained that many Nigerian airlines operate their fleets on Aircraft, Crew, Maintenance, and Insurance (ACMI) agreements without defaulting, demonstrating their commitment to fulfilling contractual obligations.
He made these comments during the Aviation Working Group (AWG) panel session at the Aviation Economics Conference in Dublin, where he stated, “The risk that the world perceives is not real within Africa, and specifically in Nigeria. For example, most airlines run their fleet on ACMIs and meet all their obligations. These agreements come with various financial commitments, and we rarely see defaults.”
Keyamo emphasized that Nigerian airlines are responsible and viable, with a strong local passenger base. He added, “We want to make it clear that the perceived risk is not real.”
On the topic of insurance, the minister mentioned ongoing efforts to collaborate with insurance stakeholders. He shared that a session with Nigerian insurance representatives and global stakeholders is scheduled in Dublin, where they aim to explore the possibility of placing insurance risks locally or with other regions. He also highlighted challenges related to withholding tax, noting that Nigerian airlines face a 10% withholding tax, which is higher than that for other sectors. The government is working to address these issues to enhance the operating margins for Nigerian carriers.
When asked about Nigeria’s potential as a West African hub, Keyamo responded, “We are naturally positioned to be the hub of Africa. However, we have some challenges. We’re late to the game, with countries like Ethiopia making significant strides and Angola pursuing ambitious efforts.”
