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How Nigeria Lost $2.5bn to Foreign Countries Due to Lack of MRO

The Federal Airports Authority of Nigeria (FAAN) at the National Aviation Conference on Tuesday disclosed that Nigeria lost $2.5bn in Maintenance, Repair and Overhaul (MRO) services on Nigerian aircraft and other facilities in 2021.

FAAN explains that the absence of an MRO facility in Nigeria was costing the country billions of dollars annually.

FAAN Managing Director Rabiu Yadudu, said “I am looking forward to a time when, instead of sending our human resources and flying machines abroad for training and checks, thereby expending huge foreign exchange in the process, we not only domesticate such activities but also earn foreign exchange from it when other countries send their machines here for checks and their manpower for trainings in Nigeria.

“Nigeria lost about $2.5bn in MRO investment in foreign countries in 2021. Having such investment here would have improved the sector tremendously.”

According to Isaac Balami, a former Aero Contractors’ Maintenance Engineer, airframe maintenance alone costs Nigeria $1 billion per year, or $1 million per aircraft.

“Airlines expend about $1 million on the maintenance of airframe alone and not to talk about the maintenance of landing gear and engine, which have different maintenance programme. These amounts are spent by Nigerian airlines, the Nigerian Navy, the Nigeria Air Force, the Nigeria Police, the Presidential Fleet and others that operate fixed wing aircraft. Maintenance cost is in terms of hardware and software.”

Balami further noted that it was carefully and thoughtfully chosen to provide solutions to major industry challenges as well as chart the course for a National Air Transport Industry that is effective, efficient, and profitable, as well as a major catalyst for national economic growth and development.

The Federal Government has been working to develop an MRO facility in Nigeria as part of its aviation plan. The Federal Ministry of Aviation has acquired 12,000 hectares of land in Abuja for the facility’s development and other aviation projects.

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