
Nigerian airlines responsible, viable — Keyamo assures lessors
Minister of Aviation and Aerospace Development, Mr Festus Keyamo, has refuted claims that Nigerian airlines are risky, particularly regarding their relationship with lessors, stating that such perceptions are unfounded.
Keyamo, who spoke during the Aviation Working Group (AWG) panel session at the Aviation Economics Conference in Dublin, emphasised that many Nigerian airlines successfully operate their fleets under Aircraft, Crew, Maintenance, and Insurance (ACMI) agreements without defaulting on their obligations. This, he said, demonstrates the reliability of Nigerian carriers.
He stated, “I think the risk that the world perceives is not real within Africa, within Nigeria. For example, most airlines run their fleet on ACMIs and they can meet all their obligations. The ACMIs they run come with various obligations, including financial obligations, and you do not have a lot of them defaulting.”
He further added, “It means that we have very responsible airlines within Nigeria, viable airlines, and a travelling population that we can feed on. We want to let the world know that this perceived risk is not real.”
On the issue of insurance, Keyamo revealed that the Nigerian government is actively engaging with insurance stakeholders to resolve existing challenges. He explained, “We are working with insurance stakeholders, and I’m just happy to let you know that they are also here with us. They are here in Dublin, and we are having a big session tomorrow with insurance stakeholders from Nigeria, together with other stakeholders from around the world, to better understand our position and determine whether we can place the risk within the local market in Nigeria or perhaps with other providers.”
The minister also addressed the issue of withholding tax, noting that Nigerian airlines face a higher rate of 10% withholding tax compared to other sectors. He acknowledged this as a challenge and stressed that the government is working to resolve it. “That is an internal problem we’re looking at because the airlines are meant to pay more, 10% withholding tax beyond what others pay. That is also a challenge, and we want to ensure that we work with them to see how we can overcome this issue and improve the operating margins for the airlines,” he said.
Asked about Nigeria’s potential as a hub for West Africa, Keyamo expressed confidence in the country’s strategic position. “We are naturally placed to be the hub of Africa,” he asserted. “We have some setbacks currently, as we are late to the party. Ethiopia has moved ahead, and Angola has made ambitious efforts. But in terms of population, ambition, and geographical location, we are better placed to be the hub of Africa.”
He went on to explain Nigeria’s geographical advantage: “If you look at the African map, Nigeria is virtually equidistant to all parts of the world—north, south, east, and west. We are late to the party, but we are pushing ourselves to the limit to get to that position and surpass even the existing hubs in Africa.”
Keyamo outlined the government’s ambitious plans to develop Nigeria’s aviation infrastructure, including the concession of airports to expand them into major hubs. “Most of the biggest airports in the world are now run by governments and have been concessioned out. I think that is what we are also driving ourselves to do,” he said.
He also noted that President Bola Tinubu has given his support for the plan, saying, “The President and Commander-in-Chief of Nigeria, President Bola Tinubu, has also given a nod to that, that we should go ahead and invite the biggest players in the world to manage our airports, to expand them into major hubs.”