Economic Recession: Reps ask FG to declare state of emergency in aviation sector

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Concerned Members of Parliament (MoP) has called on Federal Government to declare state of emergency in the nation’s aviation sector in order to salvage the $12 billion projected investment and 159,000 jobs provided across the value chain.
Nkeiruka Onyejiocha, chairman, House Committee on Aviation, gave the charge while briefing on “the impact of economic recession on Nigeria’s aviation sector,” held at the instance of the leadership of the House of Representatives.
Onyejiocha underlined the contribution of the aviation sector to the country’s GDP in recent years, and noted that the prospects of the sector playing a major role in national economic development and growth in the near future were promising.
According to Onyejiocha, the sector contributed $0.7 billion (N137.9bn) in 2014 and $685 million in 2015, as well as total of 159,000 jobs across the aviation sector and its value chain, adding, “there are further 130,000 people employed through the catalytic (tourism) effect of aviation.”
The lawmaker, who disclosed, “the sector has a projected investment of $12 billion in the short and medium term that would lead to passengers’ growth between 12 and 25 million by 2018,” emphasised the need for urgent intervention in order to avert the imminent collapse of the sector triggered by the economic recession.
“The current economic recession in Nigeria is having its toll on the sector, especially the operations of domestic airlines. In the last two weeks, some domestic airline operators suspended flights. On Wednesday, August 31, Aero Contractors announced suspension of scheduled services from Thursday, September 1, 2016. Shortly afterwards, Arik Air followed suit.”
According to Onyejiocha, the current economic recession if not checkmated, poses great challenges to job security of over 400 pilots including expatriates; 1,200 crew members and more than 1,000 travel agents.
While reacting to the recent calls by some eminent Nigerians on the need to sell-off some public assets, Onyejiocha, who warned President Muhammadu Buhari’s administration to be wary of such initiative, argued that sale of Federal Government assets is not a way out, adding that the proposed concession/ privatisation of four airports by Federal Ministry of Aviation poses significant risks and threats to the nation’s economy.
She argued that the “proposed privatization/concession is done without a recourse to the provisions of the extant Federal Airports Authority of Nigeria Act (Cap. F5 LFN 2004; a review of extant concession arrangements in Federal Airports across the nation, which at the moment have attracted over 60 cases of litigations pending in various courts of law, arising from the shady nature of the deals and arrangements.
“A consideration of the economic implications of the concession on workers in the aviation sector in particular and the Nigeria economy in general and a consideration of the implication of the concession on the security, sovereignty and territorial integrity of the Nigerian state,” the Abia lawmaker observed.
In the bid to salvage the sector on the short run, she urged Federal Government to convey an emergency stakeholders meeting on the implications of the recession on the aviation sector and possibility of declaring a state of emergency; while at long term, stressed the need for government to work towards refining aviation fuel in Nigeria while Federal Ministry of Aviation works towards developing the enabling technological wherewithal that will enable local servicing of aircrafts in the country.