Managing director of Katari System Nigeria Limited, Ali Mohammed Magashi, has identified high interest rate charged by commercial banks in Nigeria as one of the several funding obstacles militating against the growth of the aviation industry.
He also mentioned poor credit rating as another major obstacle.
Katari made the identification while presenting a paper titled, “Financing Nigerian Aviation: The Option For Growth” at the Nigeria Travel Mart (NTM)1st Anniversary Colloquium with the theme, ‘Leapfrogging Nigerian Aviation To Match Her Potential’.
Speaking further, Katari listed other funding obstacles to the growth of Nigerian aviation to include; over regulated financial system, which according to him impedes on simple and genuine foreign currency transaction, over regulation and expensive procedures by the Nigerian Civil Aviation Authority (NCAA), which he said impede on start-up airlines.
He said poor and hostile business characterised by the country’s position in ease of doing business had not helped matters, adding that for the Nigerian aviation industry to grow, the Federal Government must provide conducive environment for investors to invest.
He also alleged that the exploitation by NCAA using multiple inspections of aircraft, training facilities and maintenance facilities equally impede aviation growth.
On financing model for Nigerian aviation , the managing Director of Katari System Limited, stated that there should be targeted and effective subsidy from the Federal Government ,intervention guarantee funds with very low interest rate and longer tenure, reduction of multiple taxation that impedes airlines revenue and easier access to foreign exchange from the Apex bank ;Central Bank of Nigeria(CBN)
Other solutions proffered as funding models for the country are: reduced Customs and Excise tariffs for local airlines, reduction of landing, and parking, navigational charges for local airlines , lighting up airports and maintaining them, as only very few airports operates 24 hours ,while other operate only visual flights.
Katari appealed to stakeholders and participants at the gathering to work together for Nigerian aviation to achieve meaningful growth, adding that the aviation industry has become one of the pillars of micro economy of the Nigerian economy.
Speaking at the same occasion, Simon Tumba, Publisher and Chief Executive Officer, Nigeria travelsmart.com explained that other countries such as the United Nations and India leverage on their high population to better their respective aviation industries, while Nigeria still lags behind in this.
Tumba called on stakeholders and participants at the colloquium to tap into the huge population to contribute to the growth of aviation, bearing in mind that with this population, Nigeria could exploit a very huge market, with various airlines benefitting from it.
Ifeoma Okeke
